● 기업단신
General Electric — GE HealthCare Technologies begins trading as a separate company on the S&P 500 Wednesday. GE, in 2021, revealed plans to break up into three companies so it can focus on its aviation business. It plans to spin off its energy segment in 2024.
General Electric is about to launch the first of its three-part spin off on the public markets. GE Healthcare, which comprises medical technology, pharmaceutical diagnostics, and digital solutions, officially starts trading on the Nasdaq under the ticker GEHC today (Jan. 4).
GE Healthcare, which in November was estimated to be worth $31 billion, is also getting a spot on the S&P 500. That will set off a domino effect as it replaces Vornado Realty Trust, which will move to the S&P MidCap 400 on Jan. 5. Vornado will replace logistics firm RXO, which in turn will enter the S&P SmallCap 600, marking the exit of chiropractic care company The Joint Corp.
The second act of GE’s split is planned for early 2024, with a new entity combining its renewable energy, power, and digital units into one business. The remaining part of GE will focus fully on aviation, the company’s most lucrative segment.
Shares of GE were up about 2% in premarket trading.
Salesforce — Shares of the cloud giant rose about 2% in early trading after the company announced a restructuring plan that includes cutting its staff by about 10% and the closure of some offices.
Chinese ADRs – Shares of Chinese companies listed in the U.S. jumped after Ant Group received approval to expand its consumer finance business in a sign of progress in resolving regulators’ concerns. Alibaba, which owns 33% of Ant, and JD.com rose more than 6% in the premarket. Pinduoduo added 4.5%.
Microsoft — Microsoft shares dropped about 2% after UBS downgraded the tech giant to neutral from buy. UBS cited concern over the company’s Azure and Office businesses following a series of field checks.
Corning — Corning got a 2.5% lift after Credit Suisse upgraded the shares to outperform from neutral and raised revenue estimates, noting headwinds could change to tailwinds in 2023.
Target — The retail giant lost 1.3% after Wells Fargo downgraded the stock to equal weight from overweight. The firm said Target’s “outlook has deteriorated” and the stock is not an attractive investment amid broader economic uncertainty.
Merck — Merck’s stock rose about 1.7% after being upgraded to buy from neutral by Bank of America. Analysts cited the company’s consistent revenue upside, as well as the substantial progress it has made strengthening its cancer drug Keytruda’s position and softening the impact of when it goes off patent
Pfizer — Shares of the pharma giant were down about 1.4% after being downgraded by Bank of America to neutral from buy. Among the reasons for the call was the uncertainty over the magnitude of the revenue decline for its Covid drugs, Comirnaty and Paxlovid.
J.B. Hunt Transport Services — Shares of the transportation and logistics company fell nearly 2% in early trading after UBS downgraded the stock to sell, predicting that earnings will be flat to modest in 2023 and will show a “real cyclical decline.”
AstraZeneca — The pharmaceutical giant saw a 1.8% lift in its shares after the European Medicines Agency validated its Type II Variation application for the treatment of a “non-small cell lung cancer.”
Honeywell — Shares of Honeywell slipped 1.8% in the premarket after being double downgraded by UBS to sell from buy. The firm said shares are at a premium and it’s anticipating an order slowdown.
Tesla — Shares gained 1% in the premarket. The stock dropped 12% Tuesday, a day after the electric-vehicle maker reported missing expectations on fourth-quarter delivery and production numbers.
● 미국채 수익률
● 장전 상황
Stocks started the year with a stumble after the long holiday weekend. The Dow and the S&P closed down slightly, while the Nasdaq, hit by declines in Apple and Tesla stock, fell 0.8%. New economic data from Europe, including a decline in France’s consumer price index, could help brighten investors’ spirits Wednesday, as market watchers seek signs that inflation is easing. Investors will also digest the latest job openings, or JOLTS, report Wednesday morning, ahead of Friday’s big monthly jobs number.
Stocks rose Wednesday and rates slid as investors await key economic data reports that will show how the U.S. economy is faring amid the Federal Reserve’s rate hikes to tame inflation.
The Dow Jones Industrial Average rose 115 points, or 0.35%. The S&P 500 and the Nasdaq Composite climbed 0.52% and 0.73%, respectively. The yield on the 10-year U.S. Treasury bond slipped more than 11 basis points as investors await minutes from the central bank’s latest meeting. Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
Sentiment was boosted in part by encouraging inflation data from Europe, including a greater-than-expected decline in the French consumer price index and a drop in German import prices.
● MBA Mortgage Applications
● House
The new Congress went into session Tuesday, but, for the first time in 100 years, the majority party failed to elect a speaker right away. Kevin McCarthy, the Republican leader, failed on three ballots to be elected to the office, as hard-right members of his caucus held firm against him. Opposition to McCarthy grew throughout the day. His chances are murky at best, especially now that former President Donald Trump has backed off fully endorsing McCarthy for speaker. The chaos likely foreshadows only more dysfunction over the next two years, potentially imperiling essential legislation such as bills to keep the government open. The House is adjourned until noon Wednesday.
● Apple falls under $2 trillion
While Tesla has been grabbing headlines for its dramatic stock declines, the usually stalwart Apple has run into a rough patch of its own. The premium electronics maker slipped 27% in 2022, faring worse than the broad S&P 500 index. It kicked off 2023 with a soft session, as well, falling more than 3% Tuesday and finishing the day with a market value of under $2 trillion. The downward pressure appears to be coming mostly from Covid impacts in China weighing on iPhone production, as well as more general concern about demand for Apple’s pricey products as consumers grapple with inflation and the possibility of a recession this year.
● Covid-19
A new Covid-19 variant known as XBB.1.5 has become the dominant variant in the US, causing most new coronavirus cases, data from the CDC shows. For weeks, scientists have been monitoring a rise in several Omicron subvariants, but XBB.1.5 cases have shown the greatest spike, rising from about 4% to 41% of new infections over the month of December. Scientists say the variant has features that give it the potential to drive a new surge of Covid-19 cases in the US, although it’s still unclear how large that wave will be and whether it could send more people to the hospital. Many experts in the medical community are also saying that XBB.1.5 has shifted far away from earlier Covid-19 strains, and therefore has the potential to escape the protections of vaccinations and antibodies developed from past infections.
● Abortion
The FDA announced it will allow pharmacies to dispense the abortion medication mifepristone to patients. Mifepristone can be used along with another medication, misoprostol, to end a pregnancy. As of Tuesday, the FDA said it would no longer enforce a rule requiring people to get the first of the two drugs in person at a clinic or hospital. Certified pharmacies can instead dispense the drugs directly to someone who has a prescription. The FDA’s move comes days after a new Justice Department legal opinion declared that federal law allows the US Postal Service to deliver the abortion drugs — a move the Biden administration believes could help protect access to abortion in states that have enacted bans following the Supreme Court’s decision to overturn Roe v. Wade.
