As traders returned from the long weekend, U.S. stock index futures indicated a lower opening on Tuesday, with a particular focus on the earnings season that is gaining momentum. Goldman Sachs (GS, Financial) saw its stock decline slightly by 0.4% despite reporting a Q4 2023 top line beat, driven by a significant increase in equity trading and asset and wealth management revenues. The bank's total revenue rose approximately 7% year-over-year to $11.32B, with CEO David Solomon highlighting the year as one of execution for Goldman Sachs.
Barclays has shifted its investment strategy towards the "second wave" of artificial intelligence, upgrading stocks such as Coherent (COHR, Financial), NXP Semiconductors (NXPI, Financial), Western Digital (WDC, Financial), Camtek (CAMT, Financial), AMD (AMD, Financial), and Marvell Technology (MRVL, Financial). The firm's analysts, led by Tom O'Malley, believe that investor focus is already on the robust growth expected in 2025, despite the current market levels offering limited low-hanging fruit. Coherent's upgrade to overweight and a price target increase to $60 from $38 reflects Barclays' confidence in the AI-driven market inflection.
Boeing (BA, Financial) faced a downgrade to Equal Weight from Overweight by Wells Fargo analysts, citing increased scrutiny by aviation authorities and the potential risks to the aircraft maker's plane-delivery goals. This follows a midair emergency involving a Boeing 737 Max 9 jet, leading to a 2.5% drop in Boeing's shares in premarket trading. Wells Fargo also reduced its price target for Boeing to $225 from $280.
Significant stock movements were observed with Ansys (ANSS, Financial) experiencing a surge of over 5% as Synopsys (SNPS, Financial) finalized a $35B acquisition deal, and Digital World Acquisition Corp. (DWAC, Financial) jumping over 10% following political developments. Meanwhile, J.P. Morgan Securities LLC (JPM, Financial) agreed to pay an $18M penalty to resolve an SEC investigation into impeding client reports of potential securities violations.
Elon Musk's comments about desiring a 25% voting control over Tesla (TSLA, Financial) to lead in AI and robotics stirred the market, with Wedbush Securities analyst Dan Ives warning of the potential negative impact on Tesla's story. Verizon (VZ, Financial) shares rose in premarket trading as Citi initiated a positive 90-day catalyst watch ahead of its Q4 results.
Pagaya Technologies (PGY, Financial) announced its preliminary total revenue and other income to be in line with expectations and plans for a reverse stock split, while Mizuho downgraded PayPal Holdings (PYPL, Financial) to Neutral amid growing competition from Apple Pay and other payment options. PNC Financial (PNC, Financial) saw its stock dip after providing guidance for 2024 that fell short of consensus estimates.
Home Depot (HD, Financial) received an upgrade from Piper Sandler to Overweight with a price target of $400, reflecting a bullish outlook on home improvement and the company's position to outperform competitors. Canopy Growth (CGC, Financial) saw its shares gain in premarket trading after terminating agreements for a planned $30M private placement.
