Nexus Weekly

Equity Talk

  • $DAL – Delta Air Lines’ CEO makes a request to the U.S. Department of Justice to put convicted unruly travelers on the national “no-fly” list. The FAA made a “zero tolerance” policy for such travelers lasts year. 2021 had 5,981 cases of unruly travelers, 72% related to covid compliance rules.
  • $PTON, $AMZN & $NKE – Shares of Peloton surged on Friday on reports that Amazon approached the company about a potential acquisition. Reports also find Nike is analyzing the opportunity to make a potential bid.
  • $T – AT&T offers discounted services for over 135,000 public and private schools (K-12) and college universities. Also, $T has made a $10 million investments to support at-risk students disconnected from internet learning and $3 billion commitment to close the digital divide (Anthony, 2021).
  • $MARA, $RBLX, $BA, $AMD & $SQ – These names are like among Wall Street analysts. Marathon Technology was issued a price target of $51, Roblox saw its price target raised to $110, Boeing was upgraded to $265, AMD’ new price target is $180, and Square was upgraded to $200.
  • $AAPL – According to a Bloomberg report, Apple is in the works to launch a low-cost iPhone and iPad, as well as a new Mac in March.
  • $AMAZN, $PINS, $INTL & $PYPL – What are new entrants to the job market most focused on? Reports from these companies acknowledge that they could lose talent in the job market if they don’t offer some form of hybrid, “work-at-home” model.

Economic Reports

Monday, February 7th

  • 3pm – Consumer credit

Tuesday, February 8th

  • 6am – NFIB small-business index
  • 8:30am – International trade
  • 11am – Real household debt (YoY)

Wednesday, February 9th

  • 10am – Wholesale inventories (revision)
  • 10:30am – Fed. Gov. Michelle Bowman speaking event 1
  • 2pm – Cleveland Fed President Loretta Mester speaks

Thursday, February 10th

  • 8:30am – Initial & continuing jobless claims, consumer price index (MoM), core CPI (MoM), CPI (YoY), and core CPI (YoY)
  • 2pm – Federal budget
  • 7pm – Richmond Fed President Tom Barkin speaks

Friday, February 11th

  • 10am – UMich consumer sentiment index (preliminary) and UMich 5-year inflation expectations (preliminary)

Trending Articles

  • More inflation data in the week ahead – Economists and analysts remain focused on inflationary data in the week ahead. Recent spike in January jobs report could mean a more aggressive Federal Reserve with interest rate hikes. According to economic projections, CPI data is expected to hit 7.2% on Thursday, levels unseen since 1982.
  • Tensions heighten on the Russian Ukrainian border – According to recent reports, Russian forces are at 70% of the level required for a full invasion. As of Friday, the number of tactical battalions hit 83 and 14 more are in transit. U.S. Official’s estimates say the Ukraine could suffer 5,000- 25,000 casualties, Russia 3,000-10,000 and civilian casualties could amount to 25,000-50,000.
  • Private Equity firms invest $2 billion in sports deals – According to PitchBook, Professional sports leagues have seen an influx of roughly $2 billion from PE firms, and the NBA was the hot spot. With the expectation for increasing growth over the next decade, NBA teams reach new levels of valuation. PitchBook estimates the NBA returns on average 1,057%, versus the 458% at the S&P over the time span of 2002 to 2021.
  • Chinese markets look set for modest gains – Returning from the week-long holiday Chinese stocks appear to be gearing up for early gains as Hong Kong listed names increase on the backs of easing regulatory concerns (Vishnoi, 2021). U.S. ETF CSI 300 index added 1.6% in the recent trading week, up the most in two months. The Heng Seng index also rose 3% Friday following the Lunar break. Worries of a weakening economy led largely by the property sector debts and Beijing’s monetary easing still remain present.
  • What fueled the January Job’s report? – January’s job’s report showed that the U.S. added over 450,000 jobs despite what many economists expected to be much lower, and negative in some cases. The majority of jobs came from the leisure and hospitality sector (151K), followed by professional and business services (86K), retail trade (61K) and transportation and warehousing (54K).

Top Earnings Reports

Chipotle ($CMG) – AMC Tuesday, February 8th

  • $CMG is projected to report an EPS of $5.2 for Q4 2021 (Zack’s Investment Research).
  • Earnings Whispers: Expected quarterly earnings and revenue growth of +49% and +22%.

Disney ($DIS) – AMC Wednesday, February 9th

  • According to Zack’s Investment Research, $DIS is expected to report an EPS of $0.58 for Q4 2021.
  • Earnings Whispers: Expected quarterly earnings and revenue growth of +81% and +16%.

Twitter ($TWTR) – BMO Thursday, February 10th

  • $TWTR is forecasted to report an EPS of $0.16 for their Q4 report (Zack’s Investment Research).
  • Earnings Whispers: Expected quarterly earnings and revenue growth of -43% and +23%.

Affirm ($AFRM) – AMC Thursday, February 10th

  • $AFRM is forecasted to report an EPS of -$0.44 for their Q4 report (Zack’s Investment Research).
  • Earnings Whispers: Previous annual earnings and revenue were down +2% and +62%.

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