MARKET RECAP at 4 pm ET

The S&P 500 closed above the 5,000

mark and the Nasdaq surpassed
16,000, boosted by megacap stocks
including Nvidia, while investors
cheered modest revisions to inflation
figures. Gold slipped, pressured by
mostly higher Treasury yields, while
the dollar edged lower. Oil rose on
tensions in the Middle East and
tightness in refined products markets.
STOCKS Close Chng % Chng
Coming Up - On Monday
Federal Reserve Bank of Minneapolis
President Neel Kashkari is expected
to participate in a conversation hosted
by the Economic Club of Minnesota in
Golden Valley, Minnesota.
The U.S. Treasury Department is
scheduled to report the federal budget
data for January.
Yr-high Yr-low
companies use its products to design
chips.
Deere's Wirtgen America will try to
convince a federal jury at a week-long
trial in Delaware that Caterpillar's road
-milling machines, used to remove road
surfaces before repaving them, infringe
its patents.

DJIA 38,671.69 -54.64 -0.14 38,783.62 31,429.82 Cadence's fourth-quarter revenue is

Nasdaq 15,990.66 196.95 1.25 15,813.27 14,477.57
expected to jump 18% as more
S&P 500 5,026.61 28.70 0.57 5,000.40 4,682.11
Toronto 21,009.60 89.96 0.43 21,250.90 18,692.06
FTSE 7,572.58 -22.90 -0.30 7,764.37 7,404.08 KEY ECONOMIC EVENTS
Eurofirst 1,920.13 -1.59 -0.08 1,930.97 1,839.45
Events ET Poll Prior
Nikkei 36,897.42 34.14 0.09 36,984.51 32,693.18
Hang Seng 15,746.58 -131.49 -0.83 17,135.12 14,794.16 Federal budget for Jan 1400 -- -$129.00 bln

TREASURIES Yield Price

10-year
2-year
5-year
4.1754
4.4799
4.1385
-2 /32
-1 /32
-2 /32
Coming Up - Week Ahead
30-year 4.3741 3 /32 Coca-Cola is expected to post a rise in comments on the demand outlook for
fourth-quarter revenue on Tuesday, fiscal 2024 and management's plans to
FOREX Last % Chng
benefiting from strong demand for its drive growth in a challenging year.
Euro/Dollar 1.0784 0.07 Coke and Sprite as the company
Dollar/Yen 149.28 -0.02 undertook fewer price hikes than rival On the economic front, the U.S.
Sterling/Dollar 1.2631 0.12 PepsiCo. Investors will look out for inflation report from the Labor
Dollar/CAD 1.3458 0.02 comments on volume growth, pricing Department on Tuesday is likely to
USD/CNH (Offshore) 7.2192 0.06 actions, disruptions to business due to show consumer price index rose
the conflict in the Middle East and 0.2% in January, after a similar gain in
COMMODITIES ($) Price Chng % Chng
annual forecasts. December. In the 12 months through
January, the CPI is expected to climb
Front Month Crude /barrel 76.51 0.29 0.38 Lyft is expected to post a 4% rise in 3.0%, following a 3.4% climb in the
Spot gold (NY/oz) 2025.09 -8.09 -0.40
quarterly revenue on Tuesday as previous month. Excluding the
Copper U.S. (front month/lb) 3.69 -0.0160 -0.43
CRB Index Total Return 315.35 0.93 0.30
demand for ride-hailing remains strong. volatile food and energy
Investors and analysts expect the components, the CPI is expected to
S&P 500 Price $ Chng % Chng company to provide guidance on rise 0.3% in January after a similar rise
pricing and profitability for 2024. in the prior month. The so-called core
GAINERS
CPI will likely gain 3.8% on a year-on-
Applied Materials Inc 185.84 11.95 6.87
First Solar Inc 151.50 8.33 5.82
Hasbro on Tuesday is expected to year basis in January. On Thursday,
Lam Research Corp 911.58 47.22 5.46
post a slump in fourth-quarter revenue the Commerce Department is expected
LOSERS
as the toymaker battles dwindling to report retail sales likely rose 0.1% in
Expedia Group Inc 131.11 -28.36 -17.78 demand for its toys and table-top January, after a 0.6% gain in
Take-Two Interactive Software Inc 154.91 -14.69 -8.66 games, with consumers spending December. Excluding automobiles,
Moderna Inc 87.41 -6.25 -6.67 cautiously. Investors will look for our retail sales likely advanced 0.3% in
January, following a 0.4% climb in the
previous month. The following day, the
Labor Department is scheduled to
report the producer price index (PPI)
for final demand, which likely rose
0.1% in January after falling 0.1% in
December. In the 12 months through
December, the PPI is expected to
increase by 0.7%. Excluding the
volatile food and energy
components, PPI likely edged up
0.1% in January after remaining flat the
month before. On a year-on-year basis,
the so-called core PPI is expected to
rise 1.6% in January, following a rise of
1.8% in the previous month.
Separately, a report from the Labor
Department on Thursday is expected to
show initial claims for state
unemployment benefits likely rose to
220,000 in the week ended Feb 10,
compared to 218,000 claims in the
prior week. In a separate report, the
Labor Department is expected to report
import prices likely fell 0.1% in
January after remaining unexpectedly
unchanged in the previous month.
Export prices are also set for release.
On the same day, a report from the
Federal Reserve is expected to show
industrial production likely rose 0.3%
in January after adding 0.1% in
December. Manufacturing output for
December is also scheduled for
release. Meanwhile, capacity
utilization for the industrial sector is
A file photo shows a Doordash delivery bag in Brooklyn, New York City, May 9, 2022. REUTERS/
Andrew Kelly
expected to be 78.8% in January.
Furthermore, on Thursday, the
business inventories are expected to
rise 0.4% in January after falling 0.1%
in the previous month. Separately on
the same day, the National
Association of Homebuilders/Wells
Fargo index of builder confidence is
expected to rise to 46 in February from
a reading of 44 in the previous month.
On Friday, a report from the Commerce
Department is expected to show
overall building permits probably
rose to 1.515 million units in January
from 1.493 million units in the prior
month. Meanwhile, housing starts
numbers are likely to jump to 1.470
million units in January from 1.460
million units in December. On the same
day, a University of Michigan survey
is set to show the preliminary reading
of the U.S. consumer sentiment
Index at 80.0 in February.
American International Group is
expected to report its fourth-quarter
earnings on Tuesday when the
insurer's premiums are expected to
drive a surge in profit.
DoorDash, on Thursday, is anticipated
to post an increase in fourth-quarter
revenue boosted by an uptick in
delivery orders for food, convenience
items and groceries. Investors will eye
for comments on demand trends, plan
2
to expand in non-restaurant categories
and the 2024 forecast that the food
delivery firm gives.
Marriot is expected to report financial
results for its fourth quarter on
Tuesday. The company is expected to
see a rise in revenue on strong growth
in Asia-Pacific properties. Investors will
look for comments on travel demand
and business in China.
On the same day, Restaurant Brands
International is expected to post a rise
in quarterly same-store sales, as a
turnaround plan at its Burger King
division fuels sales at the brand, while
the Tim Hortons chain also sees steady
demand. The company's comments on
consumer demand, promotions,
margins and any updates on its Burger
King turnaround plan will be on top of
investors' minds.
On Thursday, Albemarle, the world's
largest lithium producer, is set to report
quarterly results amid a weak pricing
environment for the battery metal that
forced the company to slash costs and
cut staff.
Deere will report first-quarter 2024
results on Thursday. The company is
expected to see a fall in profit as
farmers cut spending due to high
borrowing costs. Investors will be
looking out for comments on equipment
demand and inventory.
Biogen will report its fourth-quarter
earnings on Tuesday. Investors will
focus on the company's full-year profit
outlook as it cuts costs to soften the hit
from slowing growth for some older
drugs and launches the Alzheimer's
disease drug, Leqembi, developed with
partner Eisai.
Kraft Heinz is expected to post a
decline in fourth-quarter revenue on
Wednesday, hurt by volume pressure
as pricing benefits roll-off, particularly
in North America. Investors will look for
comments on promotional levels,
demand outlook, and sales forecast.
Airbnb will report its fourth-quarter
financial results on Tuesday. The
company is expected to report higher
revenue and stable occupancy levels.
Investors will be looking for comments
on Average Daily Rates (ADR) and
property pricing.
U.S. oil and gas producer Occidental
Petroleum, on Wednesday, is
expected to report a fall in quarterly
profit hurt by weaker commodity prices.
Investors would be looking forward to
its forecasts on production and any
updates on its deal with CrownRock.
Robinhood Markets is expected to
post a rise in quarterly revenue on
Tuesday, helped by a higher interest
income from loans.
On Thursday, Applied Materials is
expected to report a 3.4% drop in
revenue as chipmakers rein in
spending on equipment used to make
semiconductor components.
Cryptocurrency exchange Coinbase
Global, on Thursday, is scheduled to
report its fourth-quarter earnings. The
company is expected to profit for the
first time in two years.
Ratings agency Moody's is expected
to post a rise in its fourth-quarter profit
on Tuesday, helped by strong demand
for its research and analytics products.
On Tuesday, Instacart, formally known
as Maplebear, is expected to post an
increase in fourth-quarter revenues,
helped by higher advertisement and
transaction fees it charges. Investors
are eyeing updates on demand trends
and order growth, comments on
increasing competition and the 2024
forecast that the grocery delivery firm
provides.
Cisco, on Wednesday, is expected to
post a 7% drop in quarterly revenue as
businesses rein in spending on
networking equipment.
MGM Resorts will be reporting
financial results for its fourth quarter on
Tuesday. The company is expected to
post a rise in fourth-quarter revenue,
helped by a steady post-pandemic
travel rebound in its key markets.
On Friday, Federal Reserve Vice Chair
for Supervision Michael Barr speaks
on "Bank Supervision" before the
Columbia Law School Banking
Conference in New York. On
Wednesday, Federal Reserve Bank of
Chicago President Austan Goolsbee
participates in a moderated question-
A smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on
a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic
and-answer session before the Council
on Foreign Relations in New York. On
the next day, Federal Reserve Bank of
Atlanta President Raphael Bostic
speaks on the economic outlook and
monetary policy before the Money
Marketeers of New York University, in
New York.
Molson Coors is expected to post a
fall in fourth-quarter revenue on
Tuesday, as demand slumped for its
beers like Miller Lite and Coors Light in
the face of price hikes. Investors will
watch out for comments on demand
trends in North America, gross margin
recovery and any updates on the
forecast.
CME Group is expected to post a jump
in fourth-quarter profit on Wednesday,
helped by higher clearing and
transaction fees.
On Wednesday, Fertilizer maker C.F.
Industries is expected to show a fall in
quarterly profits as demand for its
products fell. Investors will await
commentary on the fertilizer market
and outlook for 2024.
Charles River is expected to report its
fourth-quarter results before markets
open on Wednesday. The focus will be
on its annual revenue forecast at a time
when cautious spending by biotechs
3
has hurt demand for contract research
services.
Labcorp will report fourth-quarter
results before markets open on
Thursday. Investors will focus on
performance across its diagnostics
unit. They will also look for updates on
the 2024 outlook and comments on
biotech funding at its contract research
unit.
Boeing CFO Brian West will speak at
the Cowen Aerospace and Defense
Conference on Tuesday. Investors will
look for comments on the company's
latest quality issues. Separately, RTX
CFO Neil Mitchell will also be speaking
at the same conference on Tuesday.
Investors will look for comments on
defense demand and updates on the
Pratt and Whitney engine issues. On
the following day, Lockheed CFO Jay
Malave is scheduled to speak.
Investors will look for comments on
defense demand and F-35 production
rates.
On Wednesday, electric utility
Dominion Energy is expected to
report a fall in quarterly profits due to
lower demand during a milder-than-
expected winter. Investors will look for
updates on its offshore wind operations
and load growth forecasts. Separately,
Eversource Energy is expected to
report a rise in quarterly profit on
Tuesday.
IQVIA is expected to announce its
fourth-quarter results on Wednesday.
Investors will focus on the company's
2024 profit forecast and the impact of
the biotech funding crunch on its sales.
Ford Motor CEO and CFO will discuss
the company's Ford+ plan to improve
growth, margins and capital efficiency
at Thursday's Wolfe Research Global
Auto Conference. At the same
conference, senior executives of
General Motors will also be speaking.
Investors will be looking out for
comments on Cruise and EV strategy.
On Tuesday, U.S. Securities and
Exchange Commission Chair Gary
Gensler participates in a Q&A at Yale
Law School to discuss artificial
intelligence.
A file photo shows the logo of Shopify outside its headquarters in Ottawa, Ontario, Canada,
September 28, 2018. REUTERS/Chris Wattie
From the Canadian economic tap, the
seasonally adjusted annualized rate of
housing starts for January is
scheduled for release on Thursday.
Separately on the same day, Statistics
Canada is expected to report that
Canadian factory sales likely fell 0.6%
in December, following a rise of 1.2%
in November. The country's wholesale
trade data is set to be released on
Friday.
Canadian oil and gas pipeline company
T.C. Energy is expected to report
profits in-line with last year on
continued strong demand for crude
amid tight global supplies. Investors will
watch for updates on its
CoastalGaslink pipeline and other
divestment plans.
Shopify is expected to post a rise in
fourth-quarter revenue on Tuesday as
more merchants join its platform to
4
capitalize on social commerce and e-
commerce trends.
Canadian miner Barrick Gold is
expected to report higher revenue for
the fourth quarter, based on higher
gold prices and production. Investors
will look for updates on its operations at
the Porgera Gold Mine in Papua New
Guinea and its Nevada Gold Mines,
amongst others.
Air Canada is expected to report a
more minor loss in its fourth quarter
when it reports results on Friday.
Investors will be looking for comments
on travel demand and the airline's
pilots' contract.
Manulife Financial is expected to
report its fourth-quarter earnings on
Wednesday. The insurer's profit will
likely fall due to lower premiums and
higher expenses.
Cenovus Energy is expected to report
a fall in quarterly profit, hurt by weaker
commodity prices. Investors will be
looking forward to its forecasts for 2024
or any changes to the higher
production it earlier said it expected
from its U.S. refineries this year.
Fairfax Financial is set to report its
quarterly earnings report on Thursday.
Investors will be keenly scrutinizing
details about the company's financial
health, especially after it came under
fire from short seller Muddy Waters.
On the LATAM front, inflation in
Brazil, as measured by the IGP-10
price index for February, is expected to
be released on Friday. Separately, the
IBC-Br index, a key predictor of Brazil's
gross domestic product (GDP), is set
for release on Thursday. Meanwhile,
on Wednesday, Argentina's monthly
inflation rate is likely to hit 20.5% in
January after touching 25.5% in the
previous month. The country's annual
inflation rate sped past 211% in
December.
Market Monitor
The S&P 500 vaulted past the 5,000
milestone for a second day and the
Nasdaq surpassed 16,000, with boosts
from megacap stocks and chip
companies, including Nvidia as
investors bet on artificial intelligence
technology and eyed strong earnings
data. Nvidia climbed 3.58%
after Reuters reported the company
was building a new business unit
focused on designing bespoke chips
for cloud computing firms and others,
including advanced artificial intelligence
processors. Data showed U.S. monthly
consumer prices rose less than initially
estimated in December, but underlying
inflation remained a tad warm - a mixed
picture that clouded expectations on
the timing of interest-rate cuts from the
Fed this year. The Dow Jones
Industrial Average lost 0.14% to
38,671.69, the S&P 500 was up 0.57% A file photo of traders working on the floor at the New York Stock Exchange in New York City,
at 5,026.61, and the Nasdaq February 6. REUTERS/Brendan McDermid
Composite rose 1.25% to 15,990.66.
For the week, S&P 500 gained 1.37%,
Nasdaq rose 2.31%, and Dow edged consumer prices that rose less than 0.32% to $81.89 a barrel, while U.S.
up 0.04%. initially estimated in December. "The West Texas Intermediate crude
revisions aren't going to make the Fed futures rose 0.37% to $76.50 a barrel.
The benchmark 10-year Treasury cut rates," said Steven Ricchiuto, U.S.
rose ahead of next week’s key inflation chief economist at Mizuho Securities Gold slipped pressured by elevated
data, after revisions to inflation data USA LLC in New York. "The market's Treasury yields, while investors
from late last year were relatively in a rush, (but) the Fed is sitting there awaited next week's U.S. inflation data
modest. “You’re not really seeing as saying we're not in a rush. Actually, for more clues on the timing of the
much of a change to inflationary trends things are really pretty good from their Federal Reserve's interest rate cuts.
on a month-to-month basis as we did perspective," he said. The dollar index Benchmark 10-year U.S. Treasury
last year. It does seem like the fell 0.10% to 104.06. Against the yields rose to a two-week high, and two
revisions were a little bit more modest Japanese yen, the dollar fell 0.01% to -year yields hit an almost two-month
this time around,” said Gennadiy 149.29 yen. high, making non-yielding bullion less
Goldberg, head of U.S. rates strategy attractive for investors. The Fed will
at TD Securities in New York. Oil prices advanced as worries about likely keep rates higher for longer,
Benchmark 10-year notes fell 2/32, supply from the Middle East mounted which means most central banks will
yielding 4.1754%. Two-year notes lost and as reining outages tightened probably follow suit, Everett Millman,
1/32, to yield 4.4799%. 30-year bonds refined products markets. "With the chief market analyst at Gainesville
rose 3/32, yielding 4.3751%. words that, 'no part of the Gaza Strip Coins, said. "I think that things are
would be immune from Israel's trending lower for the gold price; there
The dollar edged lower as traders offensive', it was not hard for oil is a pretty strong floor support at about
reduced their bets on how quickly the participants to conclude that without $1,960 that I don't expect to see gold
Bank of Japan might raise interest even a passing regard for peace, there go below," he added. Spot gold was
rates and how soon the Federal was not enough conflict-premium down 0.40% at $2,024.95 per ounce,
Reserve will cut them. Traders priced in," said John Evans, an analyst while U.S. gold futures lost 0.42% to
shrugged off revised U.S. monthly at PVM. Brent crude futures gained $2,039.20 an ounce.

5
Top News
Nvidia pursues $30 billion custom
chip opportunity with new unit -
sources
Nvidia is building a new business unit
focused on designing bespoke chips
for cloud computing firms and others,
including advanced artificial intelligence
processors, nine sources familiar with
its plans told Reuters. The company
aims to capture a portion of an
exploding market for custom AI chips
and shield itself from the growing
number of companies pursuing
alternatives to its products. Nvidia is
now attempting to play a role in helping
its customers develop custom AI chips
that have flowed to rival firms such as
Broadcom and Marvell Technology,
said the sources. Nvidia officials have
met with representatives from
Amazon.com, Meta, Microsoft, Google
and OpenAI to discuss making custom
chips for them, two sources familiar
with the meetings said. Nvidia is in
talks with telecom infrastructure builder
Ericsson for a wireless chip that
includes the chip designer's graphics
processing unit technology, two
sources familiar with the discussions
said. It also plans to target the
automotive and video game markets,
according to sources and public social
media postings.
PepsiCo signals demand hit from
price hikes with rare sales decline
PepsiCo reported a surprise drop in
quarterly sales and forecast a sharp
slowdown in organic revenue growth
for 2024 as multiple price hikes weigh
on demand for its beverages and chips.
PepsiCo's fourth-quarter revenue fell
0.5% to $27.85 billion, the first drop in
14 quarters. Analysts had expected a
1.4% rise to $28.40 billion, according to
LSEG data. The company forecast
annual organic revenue growth of at
least 4%, compared to the 9.5% growth
reported for fiscal 2023. However, it
expects fiscal 2024 core earnings per
share of $8.15, compared with
expectations of $8.14. PepsiCo
expects raw material costs to moderate
from the levels seen in fiscal 2023,
Chief Financial Officer Jamie Caulfield
said. It also announced a 7% increase
to its annual dividend. In the fourth
quarter, core gross margin expanded
97 basis points as average prices
jumped 9%. Organic volume slipped
4%.
Amazon steers consumers to higher
-priced items, lawsuit claims
Amazon.com was sued in a proposed
U.S. class action accusing the online
retailer of violating a consumer
protection law by steering hundreds of
millions of shoppers to higher-priced
items in order to earn extra fees.
According to a complaint filed on
Thursday in federal court in Seattle,
Amazon's algorithm for choosing what
to display in its "Buy Box" when
shoppers search for products often
obscures lower-priced options with
faster delivery times. Citing the recent
antitrust case against Amazon by the
U.S. Federal Trade Commission and
17 states, the complaint said shoppers
go with Amazon's choices nearly 98%
of the time by clicking its "Buy Now" or
"Add to Cart" buttons, often falsely
believing Amazon had found the best
prices. Amazon allegedly created the
A file photo shows the logo of Amazon at the company's logistics centre in Boves, France, October
6, 2021. REUTERS/Pascal Rossignol
6
algorithm to benefit third-party sellers
that participate in its Fulfillment By
Amazon program and pay "hefty fees"
for inventory storage, packing and
shipping, returns and other services,
the lawsuit said.
Conoco emerges as surprise bidder
in historic Citgo share auction
A U.S. court auction weighing the fate
of Venezuela-owned oil refiner Citgo
Petroleum has received bids using
claims in lieu of cash, according to
people familiar with the process and
documents, part of a historic case to
settle Venezuelan debts. Oil producer
ConocoPhillips, the largest creditor in
the case after presenting the court with
some $12 billion from asset
expropriations in Venezuela, last month
submitted a credit bid using its claims,
the people said. Other bidders also
have tried to apply their claims against
Venezuela in bids, a Delaware court
officer overseeing the auction has said,
which could leave less cash to be
distributed among the remaining
creditors. In addition to Conoco, energy
companies Chevron, Reliance
Industries, Koch Industries and Valero
Energy, and at least one activist
investor have expressed interest in the
sales process, the people said. Dozens
of bidders began due diligence,
seeking information for the non-binding
first round, the people said.
Cisco to cut thousands of jobs as it
seeks to focus on high growth areas
-sources
Cisco is planning to restructure its
business which will include laying off
thousands of employees, as it seeks to
focus on high-growth areas, according
to three sources familiar with the
matter. The company has a total
employee count of 84,900 as of fiscal
2023, according to its website. The
company is still deciding on the total
number of employees to be affected by
the layoffs, one person said. An
announcement could come as early as
next week, as the company prepares
for its earnings call on Feb. 14. In
November 2022, Cisco announced
during an earnings call a restructuring
that impacted roughly 5% of its
workforce which lead to $600 million in
severance and other charges. Cisco
had cut its full-year revenue and profit
forecasts in its previous earnings call,
in a sign that demand for its networking
equipment was slowing.
Catalent sales edge past estimates
as focus shifts to Novo deal
Catalent inched past Wall Street
estimates for second-quarter revenue,
days after it agreed to a $16.5-billion
buyout offer from Novo Nordisk's
parent firm. The company is the main
supplier of fill-finish work - involving
filling and packaging syringes and
injection pens in sterile conditions - for
Novo's popular weight-loss drug,
Wegovy. After the deal closes, Novo
Holdings will sell Catalent's key fill-
finish sites in Anagni, Italy, Brussels,
Belgium and Bloomington, Indiana, to
Novo Nordisk for $11 billion. Quarterly
revenue was $1.03 billion, just ahead
of analysts' expectations of $1.01
billion, according to LSEG data. It took
a one-time charge of $9 million due to
a fire at one of its facilities. The
company reported a quarterly loss per
share of 24 cents, compared to
estimates of a loss of 2 cents.
Disney harnesses AI to drive
streaming ad technology
Walt Disney is harnessing artificial
intelligence to power a new advertising
tool that will help brands tailor their
commercials to fit the mood of specific
scenes within a movie or television
series. Dubbed "Disney's Magic
Words," this tool introduces a new form
of contextual advertising for the
Disney+ and Hulu streaming services.
It uses a combination of AI and
machine learning to analyze and tag
scenes across its library, identifying the
contents, brands, images and mood.
Brands can use these descriptive tags,
known as metadata, to identify a
specific scene or mood and then
personalize messaging to match.
Omnicom, Dentsu, GroupM, Horizon
Media, IPG Mediabrands and Publicis
Media are the six global advertising
companies taking part in an early beta
test of this advertising product, Disney
told Reuters.
Authors suing OpenAI ask California
court to block competing NY cases
A group of authors suing OpenAI for
copyright infringement including
Michael Chabon, Ta-Nehisi Coates and
comedian Sarah Silverman have asked
a California court to shut down related
high-profile lawsuits brought by the
New York Times, John Grisham and
others in New York. They said in a
court filing that allowing the "copycat"
lawsuits — including the Times' case
and an earlier one brought by the
Authors Guild on behalf of Grisham,
Jonathan Franzen, George R.R. Martin
and other writers — would cause
"inconsistent rulings in overlapping
class actions" and waste the courts'
time. The California plaintiffs,
represented by a legal team including
attorney Joseph Saveri, also argued
that the New York cases allow OpenAI
to engage in "forum shopping" and
"procedural gamesmanship."
Separately, OpenAI hit the $2 billion
revenue milestone in December, the
Financial Times reported, citing two
people with knowledge of the
company’s finances. To read more,
click here
7
Duke Energy to remove Chinese
battery giant CATL from Marine
Corps Base
Under pressure from Congress, U.S.
utility company Duke Energy plans to
decommission energy-storage batteries
produced by Chinese battery maker
CATL at one of the nation's largest
Marine Corps bases and will phase out
CATL products at its civilian projects,
the company confirmed to Reuters.
Duke Energy's change of course on the
batteries could have supply chain
implications for the utility and have a
chilling effect on an energy storage
market dominated by Chinese
manufacturers. Duke Energy had
sought to assuage concerns in
Congress over possible network
vulnerabilities arising from the
batteries, sending at least five
executives, including its chief security
and information officer to meet with
staff of the House of Representatives'
select committee on China in the first
week of January, according to two
sources familiar with the discussions.
While the Duke Energy executives told
the staff that they were confident in the
security of the batteries, they also
expressed a desire to address
congressional concerns, the sources
said.
Moderna shares slide on concerns
over drop in RSV vaccine efficacy
Moderna fell after Wall Street analysts
raised concerns over faster declines in
the efficacy of its experimental
respiratory syncytial virus vaccine
when compared with rival shots from
GSK and Pfizer. Data posted on
Thursday showed an efficacy of about
63% after 8.6 months in preventing
RSV-related respiratory disease, down
from 84% at 3.3 months. Brokerages
TD Cowen and UBS said the data
raised questions that the vaccine could
show a steeper decline at another long
term follow-up of 14 months, giving
competitors an edge. Despite the
differences, TD Cowen analyst Tyler
Van Buren said in a note it raises
concerns over the competitive profile of
Moderna's shot if confirmed with more
data. The shares of the company
ended 6.67% lower at $87.41.
U.S. President Joe Biden gestures as he delivers remarks at the White House in Washington, February 8. REUTERS/Kevin Lamarque
Insight and Analysis
Boeing strikes conciliatory tone with
suppliers amid 737 MAX crisis
Boeing executives extended an olive
branch to the company's strained
supply chain this week to help them
deal with the fallout of the latest 737
MAX crisis, but those firms are taking a
wait-and-see attitude after years of
dealing with the planemaker's hard-line
approach. The aerospace giant's shift
in tone was underlined by a speech on
Wednesday by Ihssane Mounir,
Boeing's vice president of supply chain
and fabrication, at an aerospace
conference outside Seattle. "We build
the airplane together. There's no you
and us. It's just us," he said.
SoftBank sees new-found caution as
secret weapon in AI arms race
For years, SoftBank Group splashed
out billions on startups at near-peak
valuations without batting an eye. Now
founder Masayoshi Son's tech
powerhouse is relying on a new
weapon as it searches for the next big
thing in AI: caution. The strategy marks
a vast turnaround for a company that
completely transformed the world of
tech investing with its high-conviction
bets on startups at an unheard of
scale. It also highlights the lingering
effect of SoftBank's "defence mode", a
strategy it adopted after being hit by
plummeting valuations in the aftermath
of the pandemic, when higher interest
rates eroded investor appetite for risk.
8
As S&P 500 breaches 5,000, its
valuation hits lofty levels as well
As the S&P 500 continues to hit fresh
milestones with a first-ever break
above the 5,000 level, its valuation is
reaching new heights as well. The S&P
500's forward price-to-earnings ratio
this week rose to 20.4 times, a level
last reached in February 2022,
according to LSEG Datastream. That
puts it far above the index’s historic
average of 15.7. It isn’t unusual for
valuations to climb along with stock
prices, and equities can stay expensive
for a long time before returning to more
moderate levels. Still, some investors
believe the index’s growing multiple
has made buying into the broad market
a less enticing proposition.
CANADA
Market Monitor
Canada's main stock index ended
higher as investors assessed a strong
jobs report at home and revised lower
inflation numbers from the United
States.
The Toronto Stock Exchange's S&P/
Top News
Canada's job growth beats
expectations in January as wage
growth slows
Canada's economy added 37,300 jobs
in January, more than double the
expectation of economists in a Reuters
poll, while wage growth slowed slightly,
data showed on Friday, figures that are
likely to keep the Bank of Canada in a
holding pattern despite pressure to
start cutting interest rates. The
unemployment rate edged down to
5.7% from 5.8% in December, posting
its first decline in 13 months, Statistics
Canada said, in part because fewer
people were seeking jobs. The
participation rate fell to 65.3% from
65.5% in December. Analysts polled by
Reuters had forecast a gain of 15,000
jobs and a rise in the unemployment
rate to 5.9%. The average hourly wage
growth for permanent employees
slowed to 5.3% in the month from 5.7%
in December. "The job market still
seems resilient," said Derek Holt, vice
president of capital markets economics
at Scotiabank. "We saw wage growth
cool in the latest month, but overall the
trend is relatively hot."
Enbridge says Canada oil pipeline
congestion may continue even once
TMX starts
Growing Canadian oil production
means shipper volumes may still be
TSX composite index was 0.43%
higher at 21,009.60.
The U.S. dollar edged up 0.01%
against its Canadian counterpart to
C$1.3456.
REUTERS/Chris Helgren
rationed on the Enbridge Inc Mainline
pipeline system even once the Trans
Mountain Expansion project is
operating, an Enbridge executive said.
Enbridge shipped a record 3.2 million
barrels per day (bpd) of crude on the
Mainline in the fourth quarter of 2023,
helping it report quarterly profits of
C$1.73 billion, compared to a loss of
C$1.07 billion a year earlier. Enbridge
reported a quarterly adjusted core profit
of C$833 million from its U.S. gas
transmission unit, compared with
C$844 million a year earlier. On an
adjusted basis, the company earned 64
Canadian cents per share, compared
with analysts' estimates of 68
Canadian cents per share, according to
LSEG data.
Magna forecasts 2024 profit below
estimates on weak EV demand
Canadian auto parts supplier Magna
International forecast its 2024 profit
9
TSE's S&P/TSX composite Price C$ Chng % Chng
GAINERS
Bombardier Inc 48.22 3.77 8.48
Trisura Group Ltd 38.98 2.19 5.95
NovaGold Resources Inc 3.31 0.14 4.42
LOSERS
Magna International Inc 73.58 -5.32 -6.74
Lightspeed Commerce Inc 18.94 -0.96 -4.82
Kinross Gold Corp 6.95 -0.22 -3.07
below estimates, weighed by cooling
demand for electric vehicles (EV) and
inflationary pressures. The company
expects full-year profit in the range of
$1.60 billion to $1.80 billion, compared
with analysts' average expectations of
$1.90 billion, according to LSEG data.
On an adjusted basis, the company
earned a profit of $1.33 per share for
the fourth quarter ended Dec. 31,
missing analysts' expectations of
$1.48.
Pot producer Canopy Growth's loss
narrows on lower costs, uptick in
Canada business
Pot producer Canopy Growth, opens
new tab reported a smaller third-
quarter loss, helped by cost cuts and
an increase in revenue from its Canada
business. Canopy Growth said its
Canadian business-to-business net
revenue rose 9%, while medical
revenue climbed 11%. The company's
gross margin for Canada cannabis
segment improved to 28%. The
company said it reduced overall debt
by C$69 million during the reported
quarter. Net loss attributable to the
company fell to C$216.8 million for the
quarter ended Dec. 31, compared with
a loss of C$259.5 million a year earlier.
WEALTH NEWS
ECONOMIC INDICATOR
Mixed US consumer price revisions leave
slowing inflation trend intact
U.S. monthly consumer prices rose less than
initially estimated in December, but underlying
inflation remained a bit warm, a mixed picture that
did not shift expectations on the timing of an
anticipated interest rate cut from the Federal
Reserve this year. The annual revisions published
by the Labor Department also showed the
consumer price index increasing slightly more
than previously reported in October and
November. The consumer price index rose 0.2%
in December instead of 0.3% as reported last
month, the revisions of the CPI data published by
the Labor Department's Bureau of Labor Statistics
(BLS) showed. But data for November was
revised up to show the CPI increasing 0.2% rather
than 0.1% as previously estimated.

INTEREST RATE PATH

Fed's Logan: risks more balanced, no urgency on rate cuts
Dallas Federal Reserve Bank President Lorie Logan said she is in no rush to cut interest rates, and while there has been
"tremendous progress" on bringing down inflation, she wants more data to confirm the progress is durable.

COLUMN
Parallel universes? 'Magnificent 7' prone to China risks :Mike Dolan
The jarring contrast of China's market bust and soaring U.S. stocks may cloud the vulnerability of the latter to events in Beijing,
and some fear Wall Street's narrow focus heightens that risk.

RESEARCH PROGRAM
White House touts $11 billion US semiconductor R&D program
The White House on Friday touted the U.S. government's plan to spend $11 billion on semiconductor-related research and
development and said it was launching the $5 billion National Semiconductor Technology Center.

CRYPTO SUIT
NY attorney general expands crypto lawsuit, sees $3 billion fraud
New York Attorney General Letitia James on Friday expanded her lawsuit against Digital Currency Group and other
cryptocurrency defendants, tripling the size of their alleged fraud scheme to more than $3 billion.

GRAPHIC
Take Five: Rain check on those rate-cut bets?
As China's troubled markets take time out for the Lunar New Year holiday, U.S. inflation numbers, key UK data, Russia's
central bank meeting and an election in the world's third-largest democracy vie for the spotlight.

COMPANIES PENALIZED
US SEC hits more Wall Street firms with fines over record-keeping
The U.S. Securities and Exchange Commission said 16 firms will pay more than $81 million to settle charges for widespread
recordkeeping failures.
ON THE RADAR
Events ET Poll Prior
Tue: NFIB Business Optimism Index for Jan 0600 -- 91.90
Core CPI mm, SA for Jan 0830 0.3% 0.3%
Core CPI yy, NSA for Jan 0830 3.8% 3.9%
CPI Index, NSA for Jan 0830 307.986 306.746
Core CPI Index, SA for Jan 0830 -- 313.22
CPI mm, SA for Jan 0830 0.2% 0.3%
CPI yy, NSA for Jan 0830 3.0% 3.4%
Real weekly earnings mm for Jan 0830 -- -0.2%
CPI mm NSA for Jan 0830 -- -0.100%
CPI Index SA for Jan 0830 -- 308.850
CPI Wage Earner for Jan 0830 -- 300.728
Cleveland Fed CPI for Jan 1100 -- 0.4%

Wed: LSEG IPSOS PCSI for Feb 1000 -- 52.90

Thu: NY Fed Manufacturing for Feb 0830 -15.00 -43.70

Import prices mm for Jan 0830 -0.1% 0.0%
Export prices mm for Jan 0830 -0.1% -0.9%
Import prices yy for Jan 0830 -- -1.6%
Initial jobless claims 0830 220,000 218,000
Jobless claims 4-week average 0830 -- 212,250
Continued jobless claims 0830 1.878 mln 1.871 mln
Philly Fed Business Index for Feb 0830 -8.0 -10.6
Philly Fed 6M Index for Feb 0830 -- -4.00
Philly Fed Capex Index for Feb 0830 -- 7.50
Philly Fed Employment for Feb 0830 -- -1.80
Philly Fed Prices Paid for Feb 0830 -- 11.30
Philly Fed New Orders for Feb 0830 -- -17.90
Retail sales mm for Jan 0830 -0.1% 0.6%
Retail sales ex-autos mm for Jan 0830 0.3% 0.4%
Retail ex-gas/autos for Jan 0830 -- 0.6%
Retail control for Jan 0830 0.4% 0.8%
Retail sales yy for Jan 0830 -- 5.59%
Industrial production mm for Jan 0915 0.3% 0.1%
Capacity utilization SA for Jan 0915 78.8% 78.6%
Manufacturing output mm for Jan 0915 0.0 0.1%
Industrial production yy for Jan 0915 -- 0.98%
Business inventories mm for Dec 1000 0.4% -0.1%
Retail inventories ex-auto rev for Dec 1000 -- 0.6%
NAHB Housing Market Index for Feb 1000 46 44

Fri: Building permits: number for Jan 0830 1.515 mln 1.493 mln
Building permits: change mm for Jan 0830 -- 1.8%
Housing starts: number for Jan 0830 1.470 mln 1.460 mln
Housing starts: change mm for Jan 0830 -- -4.3%
PPI Machine Manufacturing for Jan 0830 -- 180.5
PPI final demand yy for Jan 0830 0.7% 1.0%
PPI final demand mm for Jan 0830 0.1% -0.1%
PPI ex-food/energy yy for Jan 0830 1.6% 1.8%
Events ET Poll Prior
PPI ex-food/energy mm for Jan 0830 0.1% 0.0%
PPI ex-food/energy/Trade yy for Jan 0830 -- 2.5%
PPI ex-food/energy/Trade mm for Jan 0830 -- 0.2%
U Mich Sentiment preliminary for Feb 1000 80.0 79.0
U Mich Conditions preliminary for Feb 1000 -- 81.9
U Mich Expectations preliminary for Feb 1000 -- 77.1
U Mich 1-Yr inflation preliminary for Feb 1000 -- 2.9%
U Mich 5-Yr inflation preliminary for Feb 1000 -- 2.9%

KEY RESULTS - ON MONDAY

Company Name* Quarter ET Smart Estimates EPS Estimates** Year Ago Rev Estimates (mln)

Arista Networks Q4 AMC $1.71 $1.70 $1.41 $1,532.24

Cadence Design Systems Q4 AMC $1.34 $1.33 $0.96 $1,061.00
Federal Realty Investment Trust Q4 AMC $0.67 $0.66 $1.40 $292.19
Principal Financial Group Q4 AMC $1.70 $1.68 $1.70 $3,597.35
Trimble Q4 BMO $0.59 $0.59 $0.60 $909.53
Waste Management Q4 AMC $1.54 $1.53 $1.30 $5,193.94

*Includes companies on S&P 500 index. **Estimates may be updated or revised; release times based on company guidance or past practice.

All analysts' estimates are according to LSEG IBES data.

The Day Ahead - North America is compiled by Archak Sengupta and Haritha K P in Bengaluru.

For questions or comments about this report, email us at: TheDay.Ahead@thomsonreuters.com.

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