Market Update Newsletter 1/13/23

Markets closed higher yesterday after the CPI report showed inflation slowed by 0.1% last month. Futures are down quite a bit after some of the banks released earnings. The Fed will likely still continue to raise rates this year. Bitcoin is hovering close to $19k.

Bank earnings are important because they give us a deep insight into consumer spending and savings, amongst other things. Earnings this year have been rather disappointing and if this trend continues the market will surely react in kind.

So far this Friday the 13th we have Citigroup (C) reporting a 21% decrease in profits and missing expectations. Bank of America (BAC) and Jp Morgan beating estimates.

Stocks to Watch

Lululemon (LULU) receives multiple price target cuts. The momentum for luxury loungewear might be slowing as more and more companies require workers back into the office.

Multiple oil companies receive downgrades, among them Marathon (MRO) and Devon Energy (DVN). It seems that confidence in oil is waning, even if there is no real reason for this sentiment.

Ross (ROST) and Burlington Stores (BURL) both received target raises. This ties in with downgrades in LULU because people are buying more conventional work attire for the office and are also trying to save a buck.

Lockheed Martin (LMT) receives a downgrade to Sell by Goldman Sachs. Analysts cite concerns about the government's willingness to spend on defense. Not so sure about that.

Tesla (TSLA) receives a Sell rating from Guggenheim. Pretty harsh, but with Tesla heavily discounting vehicles and missing delivery goals last quarter an argument can be made that demand is waning at the moment.

Happy Investing,

The Punkrock Capitalist