My top 10 things to watch Wednesday, Jan. 17
1. China numbers continue to disappoint: GDP for the last three months of 2023 increased by 5.2%, falling short of analysts' estimate of 5.3%. Retail sales growth also missed. Lots of our companies are still there, but it is a pariah and has brought back the anti-rich policy. Calls for more stimulus — here we go again.
2. JPMorgan CEO Jamie Dimon said don't dismiss the concerns of Trump supporters. "People should be more respectful of our fellow citizens," Dimon said on "Squawk Box" in Davos, Switzerland. "I think this negative talk about MAGA will hurt [President Joe] Biden's campaign."
3. Ford downgraded to hold from buy at UBS, cited limited upside to estimates over 2024 and 2025 than prior years, execution and quality issues. Other than quality issues, which management is working hard to fix, I disagree with this call.
4. Netflix price target raised to $545 from $525 at KeyBanc, said increase in ad-supported monthly active users (MAU) shows member and sales growth remain healthy. This is a good example of what I have been saying about stocks going up over and over again on every PT increase. Bank of America goes to $585 from $525.
5. ADP upgraded to neutral from sell at Bank of America, noted expected tailwinds from employment and lower interest rates. I don't get this call at all as it should be the opposite, but the stock has lagged ...
6. Evercore ISI started coverage of AutoNation with a buy and $185 price target. The firm expects 5%-plus organic EPS growth to continue, significant capital returned to shareholders. Shouldn't used car prices be coming down? The firm likes Lithia & Driveway, too.
7. Boeing and Humana pulled from Bank of America's "US 1 list," the firm's best investment ideas drawn from U.S.-listed stocks. Humana has become a very difficult stock to own.
8. Unhelpful: Club name Caterpillar price target lowered to $209 from $210 at UBS, keeps sell rating on shares. The firm said Street estimates for the oil and gas subsegment within energy and transport is overly optimistic. We have had to fight this and aren't done doing so ...
9. Disney disses Nelson Peltz in a proxy filing on Tuesday, says the activist investor has not "presented a single strategic idea," the Financial Times reports. Peltz is waging a proxy battle to gain board seats for himself and former Disney CFO Jay Rasulo. Disney did not endorse either candidate. Disney CEO Bob Iger made $31.6 million in compensation last year.
10. Boston Scientific price target raised to $70 from $62 at Wells Fargo. Such a loved medical device company; and now it is because of its acquisition of Axonics, which the company expects to close in the first half of 2024.
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