Energy stocks have trailed the S&P 500 this year, as earnings for most companies are expected to fall from 2022 levels. The sector is healthy but investors are less interested now that oil and natural-gas prices appear to be past their peak.
That said, analysts have been warming to several stocks in recent weeks, boosting their earnings estimates following fourth-quarter earnings reports.
Russia Turns to China's Yuan in Effort to Ditch the Dollar
Russia's economy, restricted from Western financial networks and the U.S. dollar, has embraced a burgeoning alternative: the Chinese yuan.
Energy exporters are increasingly getting paid in yuan. Russia's sovereign-wealth fund, a war chest to support government spending burdened by battlefield costs in Ukraine, is using the Chinese currency to store its oil riches. Russian companies have borrowed in yuan, also known as renminbi, and households are stashing savings in it.
U.S. Wants Allies to Squeeze China on Chips. Progress Is Slow.
Call it the battle for ASML.
Last October, the Biden administration launched a microchip cold war against China, slapping export controls on the most advanced semiconductors. That effort gets high marks from both national security and market types. "I never thought the U.S. would have the gumption to defend this gem of an industry," says C.J. Muse, semiconductor analyst at Evercore ISI. "I applaud it."
Pentagon to Reap Rewards From $53 Billion Chips Act
WASHINGTON-The Pentagon will have secure access to leading-edge semiconductors manufactured at facilities receiving funding from the $53 billion Chips Act, Commerce Secretary Gina Raimondo said, ensuring the industry can supply the military with the advanced chips it needs for modern weapons systems.
The increased involvement of the military and national security officials comes as intensifying rivalry with China and weaknesses in the supply chain exposed during the pandemic raise concerns among policy makers that the U.S. has become too reliant on imported chips.
Move Over EVs, Hybrids Are Hot in China
Don't write off hybrid electric vehicles.
After Tesla, the most highly valued U.S.-listed EV company isn't homegrown Rivian or Lucid but Li Auto, a Chinese manufacturer that went public in 2020 by listing American depositary receipts. It has a market value of roughly $26 billion, compared with $20 billion for NIO, which took the Chinese ADR route earlier, $17 billion for Rivian and $15 billion for Lucid.
Hong Kong Lifts Citywide Mask Mandate After Almost Three Years
HONG KONG-After almost three years, Hong Kong said it will scrap its mask mandate starting March 1, removing one of the longest-running pandemic restrictions worldwide as the city tries to rebuild its image as an international financial center.
The city's Chief Executive, John Lee, announced the move Tuesday, lifting a ban that had been criticized by some health experts for requiring people to wear masks in public places at all times, except during exercise and in country parks, even as most other Covid-19 restrictions had been gradually dismantled in recent months.
White House Says No Consensus on Covid Origin
The White House said there is no consensus within the Biden administration over the origins of the Covid-19 virus, a day after the disclosure of an Energy Department assessment that the pandemic most likely originated with a leak from a Chinese lab.
The Energy Department, which had previously been undecided on the origins of the pandemic, recently joined the Federal Bureau of Investigation in saying the virus likely spread via a mishap at a Chinese laboratory, The Wall Street Journal reported Sunday.
Russia Launches New Wave of Iranian-Made Drones Against Ukraine
KYIV, Ukraine-Russia launched a new wave of Iranian-made drones against Ukrainian cities, breaking a weekslong lull in such attacks, as its forces continued to tighten their grip around the embattled eastern city of Bakhmut.
Ukraine's military said it shot down 11 out of 14 Iranian-made Shahed drones late Sunday and early Monday, including all nine that were aimed at the capital city of Kyiv. The remaining three drones, however, hit targets in the central city of Khmelnytskyi, with explosions there killing two rescue workers and injuring three other people, according to the local government. Russia also fired S-300 missiles at the southern city of Zaporizhzhia overnight, hitting an infrastructure site but causing no casualties, the local government said.
Janet Yellen Visits Ukraine to Discuss Economic Support
KYIV, Ukraine-Treasury Secretary Janet Yellen visited Kyiv on Monday, the latest high-profile trip aimed at sending a message of American commitment to supporting the country's defense against Russia's invasion, including with financial aid.
Ms. Yellen's presence in Kyiv, a rare trip to a war zone by a U.S. Treasury secretary, came a week after President Biden's surprise visit a week ago, and three days after Ukrainians commemorated the first anniversary of Russia's full-scale assault on their country.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
Aecon 4Q
Bank of Montreal 1Q
Bank of Nova Scotia 1Q
Canfor 4Q
Canfor Pulp 4Q
Cronos 4Q
First Natl Fncl 4Q
George Weston 4Q
Laurentian Bnk of Can 1Q
TheraTech 4Q
Winpak 4Q
Economic Calendar (ET):
0830 Dec/4Q GDP
Stocks to Watch:
Africa Oil 4Q Loss/Shr 39c
---
Restaurant Brands Announces Pricing of Secondary Offering of Common Shrs; HL1 17 LP Offering 2,213,851 Shrs; Selling Shareholder Has Entered Into Forward Sale Agreement With BofA Securities; BofA Securities Acting as Sole Book-Running Manager in Offering; Offering Expected to Close on March 2; HL1 17 LP Is an Affil of 3G Capital Partners Ltd.
Expected Major Events for Tuesday
00:01/UK: Jan Zoopla House Price Index
04:30/JPN: Jan Preliminary Report on Petroleum Statistics
05:00/JPN: Jan Construction Orders
05:00/JPN: Jan Housing Starts
07:00/GER: Jan Foreign trade price indices
07:45/FRA: Jan Household consumption expenditure in manufactured goods
07:45/FRA: Jan PPI
07:45/FRA: Feb Provisional CPI
07:45/FRA: 4Q GDP - detailed figures
09:00/ITA: Jan Foreign Trade non-EU
10:00/ITA: Dec Industrial turnover
13:30/US: Jan Advance Economic Indicators Report
13:30/CAN: 4Q Quarterly GDP
13:30/CAN: Dec GDP
13:55/US: 02/25 Johnson Redbook Retail Sales Index
14:00/US: 4Q U.S. Quarterly House Price Index
14:00/US: Dec U.S. Monthly House Price Index
14:00/US: Dec S&P CoreLogic Case-Shiller Indices
14:45/US: Feb Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI
15:00/US: Feb Richmond Fed Business Activity Survey
15:00/US: Feb Consumer Confidence Index
18:00/US: Jan Money Stock Measures
20:00/US: Jan Agricultural Prices
21:30/US: 02/24 API Weekly Statistical Bulletin
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Tuesday
AdaptHealth Corp (AHCO) is expected to report for 4Q.
Advance Auto Parts Inc (AAP) is expected to report $2.36 for 4Q.
American Woodmark Corp (AMWD) is expected to report $1.38 for 3Q.
Aurinia Pharmaceuticals Inc (AUP-T,AUPH) is expected to report $-0.33 for 4Q.
Beauty Health Co (SKIN) is expected to report for 4Q.
Bentley Systems Inc (BSY) is expected to report for 4Q.
Black Knight Inc (BKI) is expected to report $0.21 for 4Q.
BlackRock TCP Capital Corp (TCPC) is expected to report $0.38 for 4Q.
Butterfly Network Inc (BFLY) is expected to report for 4Q.
Carrols Restaurant (TAST) is expected to report $-0.21 for 4Q.
Civeo Corp (CVEO) is expected to report for 4Q.
Clover Health Investments Corp (CLOV) is expected to report for 4Q.
Cracker Barrel Old Country Store Inc (CBRL) is expected to report $1.29 for 2Q.
Delek US Holdings Inc (DK) is expected to report $1.09 for 4Q.
Dentsply Sirona Inc (XRAY) is expected to report $0.17 for 4Q.
Dorman Products (DORM) is expected to report $1.09 for 4Q.
Easterly Government Properties (DEA) is expected to report for 4Q.
Ecovyst Inc (ECVT) is expected to report for 4Q.
FTI Consulting (FCN) is expected to report $1.67 for 4Q.
Heska Corp (HSKA) is expected to report $0.03 for 4Q.
Interface (TILE) is expected to report $0.29 for 4Q.
Jones Lang LaSalle Inc (JLL) is expected to report $4.14 for 4Q.
Kiniksa Pharmaceuticals Ltd (KNSA) is expected to report $-0.24 for 4Q.
Lindblad Expeditions Holdings Inc (LIND) is expected to report $-0.38 for 4Q.
Mersana Therapeutics Inc (MRSN) is expected to report $-0.48 for 4Q.
MultiPlan Corp (MPLN) is expected to report for 4Q.
New Fortress Energy LLC (NFE) is expected to report $0.68 for 4Q.
Nexstar Media Group Inc (NXST) is expected to report $0.77 for 4Q.
Norwegian Cruise Line Holdings (NCLH) is expected to report $-0.88 for 4Q.
Ocugen Inc (OCGN) is expected to report for 4Q.
Ocwen Financial Corp (OCN) is expected to report for 4Q.
Owens & Minor Inc (OMI) is expected to report $0.29 for 4Q.
Pacira Pharmaceuticals (PCRX) is expected to report $0.32 for 4Q.
Perficient (PRFT) is expected to report $0.75 for 4Q.
Sculptor Capital Management Inc (SCU) is expected to report for 4Q.
SeaWorld Entertainment Inc (SEAS) is expected to report $0.71 for 4Q.
Sempra (SRE) is expected to report $2.55 for 4Q.
Spirit Realty Capital (SRC) is expected to report $0.37 for 4Q.
Theratechnologies (TH.T,THTX) is expected to report $-0.08 for 4Q.
XPEL Inc (XPEL,XPEL.U-V) is expected to report for 4Q.
Powered by Onclusive and Dow Jones.
ANALYST RATINGS ACTIONS
ACM Research Cut to Underperform From Hold by Jefferies
American Well Cut to Neutral From Overweight by Piper Sandler
Best Buy Cut to Market Perform From Outperform by Telsey Advisory Group
California Resources Raised to Buy From Neutral by B of A Securities
Coursera Cut to Hold From Buy by Truist Securities
(MORE TO FOLLOW) Dow Jones Newswires
02-28-23 0616ET
