The January jobs report will reveal the extent to which the Omicron variant of Covid-19 dented U.S. employment last month.
Record Run for Zero-Interest Convertible Bonds Hits a Wall
Over the past two years, investor demand for convertible bonds got so hot that bankers did something unprecedented: They sold nearly $57 billion of bonds that pay no interest, according to data compiled by JPMorgan Chase & Co.
Investors gobbled up convertible bonds with zero coupon from companies including Airbnb, SoFi, Snap, Ford, DraftKings, Twitter, Shake Shack, Spotify and Dish Network. They were essentially lending the companies money at 0% interest, hoping shares would rise enough that they could convert their bonds into stock. But with higher interest rates coming, the reign of the zero-coupon convertible bond is likely coming to an end in 2022, bankers say.
Shoppers Are Caught Off Guard as Prices on Everyday Items Change More Often
Everyday items, from grocery staples to home décor, are being priced more like airline tickets and gasoline, where the sticker prices can move frequently within hours or days.
Retailers say the price moves are in response to rising production, labor and shipping costs, and continuing product shortages associated with the Covid-19 pandemic. The price changes are happening online as well as offline, especially among smaller retailers that have been wary of spending on pricey technology or frustrating customers, according to executives and analysts.
German Manufacturing Orders Rose in December, Beating Forecasts
German manufacturing orders increased in December, beating expectations amid continuing supply-chain disruptions.
Manufacturing orders rose 2.8% on month in December in adjusted terms, following a revised 3.6% increase in November, according to data from federal statistics office Destatis released Friday.
Eurozone Retail Sales Declined in December Amid Rise in Coronavirus Infections
Eurozone retail sales fell in December due to a rise in Covid-19 cases across Europe with the spread of the Omicron variant, the European Union's statistics agency Eurostat said Friday.
The volume of retail sales declined 3.0% in December compared with the previous month, after a 1.0% rise in November, Eurostat said. Economists polled by The Wall Street Journal had forecast a smaller 0.5% decline for December.
Vladimir Putin, Xi Jinping Put on United Front Amid Standoff With West
Chinese leader Xi Jinping and Russian President Vladimir Putin met in Beijing in a summit just ahead of the Winter Games, showcasing a united front amid a tense standoff with the West over the buildup of Russian troops near Ukraine.
The summit marks the first face-to-face meeting with another foreign leader in more than two years for Mr. Xi, who has remained in China for the entirety of the Covid-19 pandemic. Mr. Putin opened the meeting on Friday afternoon by saying he had arrived in Beijing with a new contract to supply 10 billion cubic meters of natural gas per year to China.
Ukraine Crisis Puts Germany's Cautious Leader on the Spot
BERLIN-Olaf Scholz, the new leader of Germany, heads for Washington on Sunday, facing pressure to embrace U.S.-led efforts to counter Moscow despite Berlin's reliance on Russian energy supplies and misgivings in parts of Europe about America's push to bring Ukraine into the trans-Atlantic fold.
Like past German chancellors, Mr. Scholz had tried to balance his country's membership of the Western alliance with its close ties to Russia. But as Moscow has become more aggressive, Mr. Scholz's effort to carve a middle path has put him in an international crossfire.
NFL to Probe New Allegations of Misconduct Against Dan Snyder
The National Football League said it would launch a new probe of allegations made by former employees of Washington's NFL franchise-including an accusation of harassment against team owner Dan Snyder-that were aired at a roundtable hosted Thursday by the the House Committee on Oversight and Reform.
The roundtable was part of the congressional committee's investigation into the NFL's own probe of misconduct at the club, which last year resulted in the league fining the team $10 million for inappropriate conduct inside the team. The committee launched its inquiry last year after offensive emails related to the NFL investigation led to Jon Gruden's resignation as coach of the Las Vegas Raiders.
New allegations against Snyder surfaced at Thursday's roundtable session. Tiffani Johnston, a former cheerleader and marketing manager for the team, said Snyder made unwanted sexual advances toward her. Johnston alleged that Snyder, during dinner, placed his hand on her thigh until she removed it.
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Earnings:
Brookfield Renewable 4Q
Trilogy Metals 4Q
Economic Indicators (ET):
0830 Jan Labour Force Survey
1000 Jan Ivey Purchasing Managers Index
Stocks to Watch:
Interfor 4Q EPS C$1.14; Sales C$675.9M; Total Lumber Production Was 758 M Board Feet
Expected Major Events for Friday
00:01/UK: Jan BRC-Sensormatic IQ Footfall Monitor
00:01/UK: 1Q CBI SME Trends Survey
02:00/JPN: Jan Imported Vehicle Sales
07:00/GER: Dec Manufacturing orders
07:00/GER: Dec Manufacturing turnover
07:45/FRA: 4Q Flash estimate of job creation
07:45/FRA: Dec Industrial production index
09:00/UK: Jan UK monthly car registrations figures
09:30/UK: Jan CIPS / Markit Construction PMI
13:30/CAN: Jan Labour Force Survey
13:30/US: Jan U.S. Employment Report
15:00/CAN: Jan Ivey Purchasing Managers Index
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Friday
Air Products & Chemicals Inc (APD) is expected to report $2.50 for 1Q.
Alignment Healthcare Inc (ALHC) is expected to report for 4Q.
Art's Way Manufacturing (ARTW) is expected to report for 4Q.
Bank of the James Financial Group Inc (BOTJ) is expected to report for 4Q.
Blend Labs Inc (BLND) is expected to report for 4Q.
Bristol-Myers Squibb Co (BMY) is expected to report $1.30 for 4Q.
Brookfield Renewable Corp (BEPC,BEPC.T) is expected to report for 4Q.
Brookfield Renewable Partners LP (BEP,BEP.UN.T) is expected to report $0.08 for 4Q.
Cboe Global Markets Inc (CBOE) is expected to report $1.35 for 4Q.
Civista Bancshares inc (CIVB) is expected to report $0.61 for 4Q.
Construction Partners Inc (ROAD) is expected to report $0.07 for 1Q.
DT Midstream Inc (DTM) is expected to report for 4Q.
Design Therapeutics Inc (DSGN) is expected to report for 4Q.
Diversey Holdings Ltd (DSEY) is expected to report for 4Q.
Eagle Financial Services (EFSI) is expected to report for 4Q.
Edgewise Therapeutics Inc (EWTX) is expected to report for 4Q.
Fastenal Co (FAST) is expected to report.
Gorman-Rupp Co (GRC) is expected to report $0.33 for 4Q.
GrafTech International Ltd (EAF) is expected to report $0.41 for 4Q.
Instil Bio Inc (TIL) is expected to report for 4Q.
Johnson Outdoors (JOUT) is expected to report $1.00 for 1Q.
Kentucky First Federal (KFFB) is expected to report for 2Q.
Longboard Pharmaceuticals Inc (LBPH) is expected to report for 4Q.
Meridian Bioscience Inc (VIVO) is expected to report $0.26 for 1Q.
Nathan's Famous Inc (NATH) is expected to report for 3Q.
Phillips 66 Partners LP (PSXP) is expected to report $1.02 for 4Q.
Regeneron Pharmaceuticals Inc (REGN) is expected to report $19.20 for 4Q.
SCI Engineered Materials Inc (SCIA) is expected to report for 4Q.
SIFCO Industries (SIF) is expected to report for 1Q.
Southern Banc Co Inc (SRNN) is expected to report for 2Q.
Spectrum Brands Holdings Inc (SPB) is expected to report $0.31 for 1Q.
Technical Communications Corp (TCCO) is expected to report for 1Q.
ThredUp Inc (TDUP) is expected to report for 4Q.
Twist Bioscience Corp (TWST) is expected to report $-1.06 for 1Q.
Ubiquiti Inc (UI) is expected to report for 2Q.
United States Lime & Minerals Inc (USLM) is expected to report for 4Q.
Virtus Investment Partners Inc (VRTS) is expected to report $2.08 for 4Q.
WVS Financial (WVFC) is expected to report for 2Q.
White Mountains Insurance Group (WTM) is expected to report for 4Q.
iRadimed Corp (IRMD) is expected to report $0.18 for 4Q.
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ANALYST RATINGS ACTIONS
Alnylam Pharmaceuticals Raised to Buy From Neutral by Guggenheim
CH Robinson Worldwide Raised to Buy From Hold by Stifel
Church & Dwight Cut to Hold From Buy by Argus Research
Clarivate Cut to Equal-Weight From Overweight by Barclays
DexCom Raised to Buy From Neutral by BTIG
Dynatrace Cut to Neutral From Buy by BTIG
Electric Last Mile Soltns Cut to Hold From Buy by Jefferies
Exelon Cut to Equal-Weight From Overweight by Wells Fargo
Exelon Cut to Hold From Buy by Vertical Research
Exelon Cut to Sector Perform From Outperform by RBC Capital
First Solar Cut to Neutral From Buy by B of A Securities
Gap Inc Cut to Equal-Weight From Overweight by Barclays
Glaukos Raised to Outperform From Market Perform by William Blair
Insulet Raised to Buy From Neutral by BTIG
LogicBio Therapeutics Cut to Market Perform From Outperform by William Blair
Meta Platforms Cut to Hold From Buy by Loop Capital
Meta Platforms Cut to Market Perform From Outperform by BMO Capital
Meta Platforms Cut to Neutral From Overweight by JP Morgan
Meta Platforms Cut to Outperform From Strong Buy by Raymond James
NVR Inc Raised to Neutral From Sell by UBS
PayPal Holdings Cut to Hold From Buy by DZ Bank
PulteGroup Raised to Buy From Neutral by UBS
Soc Telemed Cut to Neutral From Outperform by Baird
Soc Telemed Cut to Sector Perform From Outperform by RBC Capital
Sprinklr Cut to Sector Weight From Overweight by Keybanc
Unitil Raised to Neutral From Underperform by B of A Securities
Vertex Pharmaceuticals Cut to Sector Perform From Outperform by RBC Capital
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02-04-22 0555ET
