MARKET RECAP at 4 pm ET

Wall Street edged higher as investors

parsed big-ticket earnings and
Coming Up
assessed comments from Fed officials.
Gold firmed after a pullback in dollar
and Treasury yields. Oil prices rose
after the U.S. Energy Department said
crude oil production would not grow as
fast as previously forecast.

STOCKS Close Chng % Chng Yr-high Yr-low

DJIA 38,520.70 138.20 0.36 38,783.62 31,429.82

Nasdaq 15,609.00 11.32 0.07 15,664.21 14,477.57

S&P 500 4,954.23 11.42 0.23 4,975.29 4,682.11
Toronto 20,957.74 85.85 0.41 21,250.90 18,692.06
FTSE 7,681.01 68.15 0.90 7,764.37 7,404.08
Eurofirst 1,928.09 11.81 0.62 1,929.23 1,839.45
Nikkei 36,160.66 -193.50 -0.53 36,984.51 32,693.18
Hang Seng 16,136.87 626.86 4.04 17,135.12 14,794.16

TREASURIES Yield Price

10-year 4.0904 19 /32 A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the
2-year 4.4036 4 /32 New York Stock Exchange (NYSE) in New York, December 14, 2017. REUTERS/Brendan
5-year 4.0383 12 /32 McDermid
30-year 4.2908 31 /32

FOREX Last % Chng

Walt Disney is expected to report first- Federal Reserve Board Governor
quarter results. Analysts expect Walt Adriana Kugler is likely to speak on
Euro/Dollar 1.0755 0.13
Disney's revenue to grow by 0.7% in its "The Outlook for the Economy and
Dollar/Yen 147.86 -0.54
December quarter, however, Wall Monetary Policy" before the Brookings
Sterling/Dollar 1.2597 0.52
Dollar/CAD 1.3486 -0.38
Street expects ad revenue to drop 63% Institution, in Washington. Separately,
USD/CNH (Offshore) 7.2011 -0.25
and revenue from linear networks to fall Federal Reserve Board Governor
by 59%. Michelle Bowman is scheduled to
COMMODITIES ($) Price Chng % Chng speak on "Supporting Entrepreneurship
China's Alibaba Group is expected to and Small Businesses" before the
Front Month Crude /barrel 73.49 0.71 0.98
Spot gold (NY/oz) 2035.56 10.89 0.54
report a growth in revenue in the third virtual "Uneven Outcomes in the Labor
Copper U.S. (front month/lb) 3.78 0.0105 0.52 quarter as the country's retail sector Market" conference hosted by the
CRB Index Total Return 309.13 1.04 0.34 continues to see a recovery. Federal Reserve Board of Governors
and the Federal Reserve Banks of
S&P 500 Price $ Chng % Chng

GAINERS
Ceridian HCM Holding Inc NULL NULL NULL KEY ECONOMIC EVENTS
GE Healthcare Technologies Inc 81.96 8.55 11.65
Dupont De Nemours Inc 65.70 4.49 7.34 Events ET Poll Prior
LOSERS
International trade for Dec 0830 -$62.2 bln -$63.2 bln
FMC Corp 53.44 -6.98 -11.55
Charter Communications Inc 290.28 -13.37 -4.40 Goods trade balance (R) for Dec 0830 -- -$88.46 bln
Adobe Inc 607.14 -23.36 -3.71 Consumer credit for Dec 1500 $16.00 bln $23.75 bln
Atlanta, Boston, Cleveland,
Philadelphia, San Francisco, and St.
Louis, in Washington. Additionally,
Richmond Fed President Thomas
Barkin is expected to participate in a
conversation before the Economic Club
of Washington D.C., in Washington.
From the U.S. economic tap, a report
from the Commerce Department is
expected to show that international
trade likely contracted to a deficit of
$62.2 billion in December from a deficit
of $63.2 billion in November.
Separately, the U.S. Federal Reserve's
data on consumer credit is expected
to come in at $16 billion in December.
Uber is expected to report a rise in
revenue and profit in the fourth quarter.
Investors will look for changes to
margins and gross bookings given
Uber's strong driver supply and efforts
to improve platform efficiency.
PayPal is expected to report a rise in
its fourth-quarter profit with analysts
and investors closely watching for
updates on the payments firms' plans
to expand its margins and reignite
growth in non-transaction-related
segments. The payments company is
also expected to provide its outlook for
2024 profit and revenue growth with all
eyes on spending trends in an
uncertain economy.
CVS Health is set to report its fourth-
quarter results before markets open.
The focus will be on the company's
forecast for 2024 and comments on
medical costs and its new pharmacy
pricing model.
Coty is expected to post a rise in
second-quarter revenue, riding on
robust demand for beauty products
across price brackets. Investors will
watch out for comments on pricing
actions and product launches from the
CoverGirl parent.
Mattel is expected to post a rise in
fourth-quarter revenue as the company
rides on a boost to sales from the
popularity of the Barbie movie during
the crucial holiday season. Investors
will watch out for comments on its
American Girl and Fisher-Price
segments as well as demand trends in
the broader toy industry.
Global crop trader and processor
Bunge is expected to report a fall in
fourth-quarter revenue, as
improvement in supply had lowered
crop prices in the quarter. Investors
and analysts will look out for comments
on demand and crush margins.
Roblox is expected to post an increase
in net bookings in the fourth quarter as
the holiday quarter pulled more users
to its gaming platform.
Yum Brands is expected to post a rise
in its fourth-quarter sales, aided by
steady demand at its KFC and Taco
Bell chains, helping offset lackluster
demand at Pizza Hut. The company's
expectations for 2024, its comments on
promotions and discounts, margin
recovery and consumer health will be
keenly watched for.
Fox Corp is expected to report a drop
in their second-quarter revenue as
advertisers cut spending on its
television networks due to an uncertain
economy. Alongside, media
conglomerate News Corp is expected
to post higher second-quarter revenue,
A file photo shows the Mattel company logo at the entrance of the Montoi plant in the municipality
of Escobedo, Mexico, March 15, 2022. REUTERS/Daniel Becerril
2
driven by a surge in digital
subscriptions at business information
unit Dow Jones.
Globe Life is expected to post a rise in
its fourth-quarter profit on higher
insurance underwriting and investment
income.
Business payments firm Fleetcor
Technologies is expected to post a
rise in its fourth-quarter profit helped by
strong performance in its fleet
segment.
In the Latin American economic
calendar, Brazil's central bank is likely
to show the country's trade balance
contracted to $7.35 billion in January,
from $9.36 billion in December.
Additionally, the country is also
expected to report its primary budget
balance and nominal budget balance
for December. Separately, the
country's retail sales are expected to
fall 0.2% in December, after gaining
0.1% in November. In the 12 months
through December, retail sales possibly
advanced 2.9%. Meanwhile, Mexico's
consumer confidence data for
January is due for release. Lastly, the
world's top copper producer, Chile, is
expected to post a trade surplus of
$1.8 billion in the month of January.
Market Monitor
The S&P 500 closed slightly higher, as
investors scrutinized a mixed bag of
earnings at big U.S. companies and
digested comments from Federal
Reserve policy makers for clues about
its first planned interest-rate cut. "The
big macro news today is a couple of
Fed governors confirming what Powell
said over the weekend. It's putting a
little damper on markets today. It's a
little follow through from yesterday,"
said Peter Tuz, president of Chase
Investment Counsel in Charlottesville,
Virginia. The KBW Regional Banking
index ended 1.41% down at 96.63 as
New York Community Bancorp
plummeted 22.31%, stretching a selloff
since the lender's surprise quarterly
loss last week. The materials index
gained 1.70% to 519.5, as DuPont de
Nemours jumped 7.34%. The Dow
Jones Industrial Average rose 0.36%
to 38,520.70, the S&P 500 advanced
0.23% to 4,954.23 and the Nasdaq
Composite gained 0.07% to 15,609.
Treasury yields dipped as investors
awaited fresh signals on when the
Federal Reserve is likely to begin
cutting interest rates, while the
Treasury saw solid demand for an
auction of new three-year notes.
Tuesday’s move is “maybe just a little
bit of exhaustion of the repricing that
we’ve seen over the past week,” said
Zachary Griffiths, senior investment
grade strategist at CreditSights in
Charlotte, North Carolina. “That CPI
print next week will really set the tone
of if we’re going higher and higher in
yields, or if we’re going to move back to
the middle of the recent range and May
is on the table," Griffiths said. The
Treasury Department sold $54 billion in
3-year notes, at a high yield of 4.169%.
The bid-to-cover ratio was 2.58.
Benchmark 10-year notes gained
19/32 to yield 4.0904%. Two-year
notes were up 4/32, yielding 4.4036%.
30-year bonds rose 30/32, with a yield
of 4.2926%.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S.,
January 31. REUTERS/Brendan McDermid
The dollar slid against major Energy Outlook, the Energy
Department said U.S. crude oil
currencies, a day after it rose to its
production will rise by 170,000 bpd this
highest level in almost three months,
year; down from the previous
as strong economic data and a
forecasted rise of 290,000 bpd. Brent
hawkish stance on interest rates by
crude futures were up 0.9% at $78.69
Federal Reserve officials bolster the
a barrel, while U.S. West Texas
U.S. currency. The dominant storyline
Intermediate crude futures rose
for FX traders is a return to the U.S.
0.96% to $73.48 a barrel.
economic exceptionalism trade from
the third quarter of 2023, said Matthew
Gold firmed after a pullback in the U.S.
Weller, global head of research at
dollar and Treasury yields, while
FOREX.com. "Now traders are
traders positioned for remarks from
wondering if instead of whether we'll
several Federal Reserve officials this
get a soft landing or recession, whether
week to gauge the likely pace of
we could have no landing or re-
interest rate cuts this year. "We're
acceleration this year," he said. "To me
expecting gold prices to firm on the
it is a lot about the U.S. dollar, the Fed
horizon with next week's CPI data
and the economic data that we're
release potentially being the catalyst.
seeing out of the U.S." The dollar
We expect a soft print on inflation and
index fell 0.29% to 104.15.
gold to respond quite positively," he
added. Spot gold rose 0.54% to
Oil futures climbed after the U.S.
$2,035.53 per ounce. U.S. gold
Energy Department said crude oil
futures were 0.46% higher at $2052.3
production would not grow as fast as
an ounce.
previously forecast. In its Short-Term
3
Top News
Bolts appeared to be missing from
plug door that flew off Boeing jet –
agency
A door panel that flew off a Boeing 737
MAX 9 jet mid-flight on Jan. 5
appeared to be missing four key bolts,
according to a preliminary report from
U.S. investigators that provided the first
official look into how the frightening
mishap took shape. Photo evidence
released shows bolts were missing
from the door plug, which had been
removed to fix rivets that were
damaged in the production process,
according to the independent U.S.
National Transportation Safety Board
report. "The investigation continues to
determine what manufacturing
documents were used to authorize the
opening and closing" of the plug during
the rivet rework," the report said.
Separately, the head of the U.S.
Federal Aviation Administration said on
Tuesday the agency would post
inspectors at Boeing, following a 737
MAX 9 mid-air emergency, saying "the
current system is not working." To read
the full story, click here.
earnings of $12.20 to $12.70, putting
the midpoint ahead of analysts'
estimates of $12.43 per share,
according to LSEG data. Fourth-
quarter profit of $2.49 per share on an
adjusted basis, beat Wall Street
expectations by 27 cents.
Spirit to ramp up robotics to reduce
737 fuselage problems
Spirit AeroSystems will invest in
autonomous technology to limit any
defects in its production of Boeing 737
fuselages, its CEO said after a series
of manufacturing problems and last
month's mid-air blowout on a 737 MAX
9. Interim CEO Patrick Shanahan said
that Spirit expects to have a repair plan
identified within 72 hours. Spirit did not
give a forecast for 2024, citing
uncertainty on the timing of 737 MAX
production increases and ongoing price
negotiations with Airbus focused on the
A220 program, which Shanahan said
could conclude as early as this month.
While full scale robotics are
"impractical" in Spirit's Wichita,
Shanahan said the company is looking
to accelerate technology that can make
it easier for mechanics to build the front
and rear portions of the 737 fuselage.
Spirit reported free cash flow of $42
million for the quarter due to $100
million funding received from Boeing,
but that fell short of analyst
expectations of $122.35 million. The
company had said it expects to
generate free cash in 2024 after years
of cash burn on cost overruns and
supply jams.
Palantir shares soar as Wall Street
cheers revenue boost from AI push
Palantir Technologies shares surged,
as the data analytics software maker's
strong fourth-quarter revenue growth

Lilly rides wave of weight-loss drug

demand, working to expand capacity
Eli Lilly forecast 2024 profit above Wall
Street estimates on soaring demand for
Zepbound, its recently approved weight
-loss drug, and said it would have new
supply from expanded manufacturing
capacity as soon as this year. Lilly
announced that its new Concord, North
Carolina site would begin producing
Zepbound and Mounjaro, both known
chemically as tirzepatide, as early as
the end of the year, with products
available to ship in 2025. Lilly said it
expects to produce one and a half
times as many sellable doses in the
second half of 2024 as it did in the
second half of last year. The
drugmaker said while it will expand
manufacturing capacity, it expects
demand for Mounjaro and Zepbound to
outpace supply in 2024. The company
said it expects 2024 revenue of $40.4
billion to $41.6 billion, and adjusted Click on the chart for a detailed and interactive graphic

4
led by increased demand for its AI
offerings enthused investors. Revenue
from Palantir's commercial segment
rose 32% year-over-year to $284
million in the reported quarter, helping
the company post $608 million in
overall revenue which beat LSEG
estimates. The surge in demand for the
company's AI platform helped offset
concern about slowdown at its largest
segment that serves the U.S.
government due to uncertainty over
timing of contracts. Jefferies upgraded
Palantir's shares to "hold" from
"underperform," reversing its rating in
just a month saying "we are impressed
with AI Platform (AIP) ramping faster
than our initial expectation." Palantir
also introduced an adjusted free cash
flow forecast, targeting between $800
million and $1 billion in 2024, which
Jefferies called the "highlight" of the
report. The shares of the company
ended 30.74% higher at $21.86.
WeWork founder Adam Neumann
trying to buy back company
WeWork founder Adam Neumann is
trying to buy back the flexible
workspace provider that filed for
bankruptcy in November, sources
familiar with the matter said.
Neumann's new real estate company,
Flow Global, has sought to buy
WeWork or its assets, as well as
provide bankruptcy financing to keep it
afloat, the sources said. DealBook first
reported the development, saying
Neumann's lawyers sent a letter to
WeWork on Monday, claiming Daniel
Loeb's hedge fund Third Point would
help finance the transaction. Third
Point told Reuters it has held "only
preliminary conversations" with
Neumann and his property company
Flow and has not made any financial
commitments. WeWork said it routinely
receives "expressions of interest" and
reviews them to align with the best
interests of the company."
Costco veteran CFO to exit, Kroger's
Millerchip to take over
Costco Wholesale said its longtime
finance chief Richard Galanti will step
down on March 15 and be succeeded
by his counterpart at Kroger's Gary
Millerchip. Galanti, who was CFO for
more than three decades, will remain
with the membership-only retailer
through January 2025 in an advisory
role to assist Gary during the transition.
The company topped market
expectations for quarterly revenue and
profit in December and saw a nearly
7.6% rise in total paid household
members.
DuPont sets $1 billion stock
buyback target, hikes dividend after
Q4 profit beat
DuPont de Nemours announced a new
$1 billion stock repurchase program
and a 6% rise in its quarterly dividend
after it beat Wall Street estimates for
fourth-quarter profit. For the fourth
quarter ended Dec. 31, the company
reported an adjusted profit of 87 cents
per share, above LSEG estimates of 85
cents, helped by reduced costs. The
company forecast annual sales
between $11.9 billion and $12.3 billion,
compared with analysts' average
estimate of $12.3 billion.
Blackwells recommends its Disney
board nominees, suggests potential
company split
Activist investor Blackwells Capital has
urged Walt Disney shareholders to
elect its three board candidates,
arguing they would help drive growth,
review real estate holdings and bring
tech expertise. Its nominees could help
Disney "explore all strategic
possibilities with cold eyes" including a
potential separation of the company
into three entities that could eventually
become standalone public companies,
it also said in a letter to shareholders
seen by Reuters. In the letter,
Blackwells said it supports Disney CEO
Bob Iger and the changes he is making
but that even Iger "requires oversight
and accountability". It said that Jessica
Schell, a former general manager of
Warner Bros Home Entertainment,
could help Disney reach "Netflix like
growth rate on subscribers and pricing
for Disney+." Craig Hatkoff, who has
real estate and capital markets
experience, could help the company
think about utilising a hotel and
hospitality real estate investment trust,
5
while Leah Solivan could help with
shifting consumer behavior due to her
familiarity with AR/VR trends, the letter
said.
Centene quarterly revenue beats
estimates driven by higher
premiums
Centene beat Wall Street estimates for
fourth-quarter revenue, on the back of
higher premiums in its commercial
insurance business. The insurer
earned $7.41 billion in revenue from its
commercial business offering private
health insurance plans to individuals
and families, up 68% year-over-year.
Commercial unit memberships jumped
nearly 72% to 4.3 million, as of Dec.
31. Betting on continued growth in the
commercial unit, Centene raised its full-
year 2024 premium and service
revenue outlook to $134.5 billion-
$137.5 billion, an increase of more than
$2.5 billion at the mid-point from its
previous forecast. Centene posted
quarterly revenue of $39.46 billion,
above analysts' estimates of $36.14
billion.
Spotify's user growth beats
estimates, forecasts upbeat year
Spotify reported fourth-quarter monthly
active users and subscribers ahead of
expectations as it grew in all regions,
and said revenue and profitability
trends looked favourable this year. The
number of monthly active users rose by
23% to 602 million in the fourth quarter,
beating Spotify's guidance and
analysts' forecasts of 601.33 million.
Premium subscribers, who account for
most of the company's revenue, rose
by 15% to 236 million, topping
estimates of 235.1 million, according to
IBES data from LSEG. However,
quarterly revenue, which rose 16% to
3.67 billion euros, missed estimates of
3.72 billion as it took a hit from foreign
exchange losses. Its first-quarter
revenue is also expected to fall below
expectations. The company expects
current-quarter premium subscribers to
reach 239 million, above estimates of
238.3 million. However, the first-quarter
forecast was below Wall Street
expectations for total users and
revenue.
A girl looks, as divers perform a dragon dance ahead of the Lunar New Year celebration at the Sea Life Bangkok Ocean World aquarium in Bangkok,
Thailand, February 6. REUTERS/Athit Perawongmetha
Insight and Analysis
FOCUS-Amgen taking different path
to weight loss windfall
The popularity of a new generation of
weight-loss medicines is inspiring a
growing number of drugmakers to
pursue paths emulating Eli Lilly's highly
-effective Zepbound, but Amgen is
taking a unique approach. Zepbound,
which promotes the most weight loss
among treatment options currently on
the market, stimulates two different gut
hormones to fight obesity, GLP-1 and
GIP. Amgen's most advanced
experimental candidate activates GLP-
1 while blocking GIP. It says its goal is
quicker weight loss, less frequent
dosing and possibly better weight
maintenance.
FOCUS-'The great contraction' hits
Hollywood
When stars returned to the red carpet
in early January after two bruising
strikes to celebrate the success of
“Oppenheimer” and “Succession,” one
existential threat above all was on
everyone’s mind: Hollywood is
shrinking. The era of “peak TV,” is
over, said 17 entertainment business
executives, agents and bankers who
spoke with Reuters. From fewer
original series and movies to greater
scrutiny of budgets and a further
squeeze on movie theater profits,
people who call the shots said the
television and film industries are
adjusting to sober economic realities.
6
COLUMN-Diesel prices primed to
rise sharply in 2024: Kemp
Global stocks of diesel and other
middle distillates are below normal and
prices could start to rise quickly if the
industrial economies of North America
and Western Europe emerge from their
lingering recession in 2024. Inventories
of diesel, heating oil and gas oil were
below the prior ten-year seasonal
average across North America, Europe
and Singapore in January, which has
begun to exert upward pressure on fuel
prices. Investors have already noticed
and amassed a position equivalent to
56 million barrels in the two major
futures and options contracts tied to
middle distillates up from 20 million
barrels in the middle of December.
CANADA
Market Monitor
Canada's main stock index rose,
supported by gains in healthcare and
energy stocks.
The Toronto Stock Exchange's S&P/
TSX composite index ended 0.41%
higher at 20,957.74.
Healthcare stocks, which includes
pharmaceuticals and biotech firms,
advanced 2.81% to 23.43.
Energy stocks gained 0.65% to
235.14 tracking higher oil prices.
Top News
Bank of Canada says more time is
needed to bring down inflation
Bank of Canada (BoC) Governor Tiff
Macklem said more time was needed
for monetary policy to ease price
pressures while he warned that the
biggest driver of prices - shelter costs -
cannot be tamed by borrowing costs.
"We can see monetary policy is
working to bring down inflation... and
we need to give monetary policy more
time to ease the remaining price
pressures," he said during a speech at
the Montreal Council of Foreign
Relations. Canada's acute housing
shortfall has pushed up the costs of
buying or renting a property in Canada,
and Macklem said shelter costs were
now the biggest contributor to above-
target inflation. "Housing affordability is
a significant problem in Canada - but
not one that can be fixed by raising or
lowering interest rates," he said. In
testimony to the House of Commons
last week, Macklem urged all levels of
government to resolve a "chronic
structural shortage" in housing supply.
On Tuesday, he said that years of
supply shortages and a recent surge in
The U.S. dollar fell 0.38% against the
Canadian dollar to C$1.3486.
The value of Canadian building
permits fell by 14.0% in December
from November, Statistics Canada
said.
Focus will now shift to minutes of BoC's
last policy meeting, due on
Wednesday, where the bank left its key
overnight rate unchanged.
population growth through immigration
"means housing prices have declined
only modestly" despite the high interest
rates.
Toronto home sales outpace new
listings in January as market
tightens
Greater Toronto area home sales
jumped in January while new listings
increased more slowly, in a tightening
of market conditions that could lead to
a resurgence in house prices in the
coming months, data showed. Sales
surged 37% on an annual basis as
some home buyers started to benefit
from lower borrowing costs associated
with fixed-rate mortgages, while new
listings increased 6.1% from January
2023, according to Toronto Regional
Real Estate Board (TRREB) data. On a
seasonally adjusted basis, sales rose
9.6% month-on-month in January, the
second consecutive increase after a
19.5% growth in December. Seasonally
adjusted new listings increased 4.6% in
January after a 12.7% decline in the
previous month. The seasonally
adjusted average home price fell 6.5%
7
COMING UP
On the economic schedule, Canada's
trade surplus likely narrowed to
C$1.10 billion in December, following a
surplus of C$1.57 billion in November.
The country's import and export data
are also due for release.
TSE's S&P/TSX composite Price C$ Chng % Chng
GAINERS
Tilray Brands Inc 2.64 0.16 6.45
Lithium Americas Corp 5.48 0.30 5.79
Precision Drilling Corp 84.07 4.20 5.26
LOSERS
International Petroleum Corp 13.57 -0.79 -5.50
Park Lawn Corp 19.19 -0.58 -2.93
Energy Fuels Inc 9.84 -0.27 -2.67
in January from December to
C$1,062,111. "There will be more
competition between buyers in 2024 as
demand picks up and the supply of
listings remains constrained. The end
result will be upward pressure on
selling prices over the next two years,"
Mercer said.
Canada's Ivey PMI rises to 9-month
high in January
Canadian economic activity expanded
at its fastest pace in nine months in
January, Ivey Purchasing Managers
Index (PMI) data showed. The
seasonally adjusted index edged up to
56.5 in January from 56.3 in
December, posting its highest level
since April. The Ivey PMI measures the
month to month variation in economic
activity as indicated by a panel of
purchasing managers from across
Canada. A reading above 50 indicates
an increase in activity. The gauge of
employment dipped to an adjusted 57.2
from 57.9 in December, while the
prices paid index was at 62.2, easing
from 64.5. The unadjusted PMI rose to
54.4 from 43.7.
WEALTH NEWS
FED POLICY
Fed's Mester open to rate cuts if clear inflation is easing
further
Federal Reserve Bank of Cleveland President Loretta Mester
said if the U.S. economy performs as she expects it could
open the door to rate cuts, but she’s not ready yet to offer any
timing for easier policy amid ongoing inflation uncertainty.
“Monetary policy is in a good place from which to assess and
respond” to risks to the outlook, Mester said in the text of a
speech to be delivered before a gathering of the Ohio Bankers
League in Columbus, Ohio. “The current strength in labor
market conditions and the strong spending data give us the
opportunity to keep the nominal funds rate at its current level
while we gather more evidence that inflation truly is on a
sustainable and timely path back to 2%,” she said. And when it
comes to the prospect of lowering the Fed’s short-term rate
target, Mester said if the economy moves forward as expected, A file photo shows Loretta J. Mester, president and CEO of the Federal
Fed officials will gain confidence price pressures are easing Reserve Bank of Cleveland, looks on at Teton National Park where
financial leaders from around the world gathered for the Jackson Hole
and “then we can begin moving rates down. My base case is
Economic Symposium outside Jackson, Wyoming, August 26, 2022.
that we will do so at a gradual pace so that we can continue to REUTERS/Jim Urquhart
manage the risks to both sides of our mandate.”

PRIVATE EQUITY EARNINGS

KKR beats estimates with 4% rise in Q4 earnings
Private equity firm KKR said its fourth-quarter distributable earnings rose 4%, buoyed by strong growth in income from asset
sales in addition to management and transaction fees.

TRADER SURVEY
Inflation, US election to drive 2024 markets - JPMorgan trader survey
Inflation and the U.S. presidential election will be the biggest drivers of global markets this year, while liquidity challenges are a
growing focus, according to traders surveyed by JPMorgan.

YELLEN TESTIMONY
Yellen concerned about US commercial real estate but says stresses manageable
U.S. Treasury Secretary Janet Yellen said she is concerned about looming commercial real estate stresses on banks and
property owners, but believes the situation is manageable with assistance from bank regulators.

STOCK BUYBACKS
US stock buyback plans picking up in earnings season, EPFR says
U.S. stock buybacks are picking up, with corporate announcements this earnings season trending above the prior two quarters
and above the average of the past 12 earnings periods, according to EPFR.

MARKET DEALER RULE

US SEC adopts Treasury market dealer rule as part of market overhaul
The U.S. securities regulator adopted a rule requiring proprietary traders and other firms that routinely deal in U.S. government
bonds and other securities to register as broker-dealers, subjecting them to stricter oversight.

BANK EXPANSION
JPMorgan to open more than 500 new bank branches over next three years
JPMorgan Chase said it was embarking on one of its most aggressive bank branch expansions in recent years, with plans to
add more than 500 new U.S. locations by 2027 to broaden its footprint in areas where it is under-represented.

8
KEY RESULTS
Company Name* Quarter ET Smart Estimates EPS Estimates** Year Ago Rev Estimates (mln)

Allstate Q4 AMC $4.01 $3.99 -$1.36 $12,941.14

Bunge Global SA Q4 BMO $2.82 $2.81 $3.24 $15,056.35
CDW Q4 BMO $2.56 $2.56 $2.50 $5,323.77
CVS Health Q4 BMO $1.99 $1.99 $1.99 $90,404.74
Dayforce Q4 BMO $0.33 $0.32 $0.23 $399.71
Emerson Electric Co Q1 BMO $1.04 $1.04 $0.78 $3,918.85
Equifax Q4 AMC $1.75 $1.75 $1.52 $1,312.60
Everest Group Ltd Q4 AMC $14.65 $14.66 $12.21 $3,679.15
Fleetcor Technologies Q4 AMC $4.50 $4.48 $4.04 $970.15
Fox Q2 BMO $0.14 $0.12 $0.48 $4,197.34
Globe Life Q4 AMC $2.73 $2.73 $2.24 $1,400.28
Hilton Worldwide Holdings Q4 BMO $1.58 $1.57 $1.59 $2,612.92
Mckesson Q3 AMC $7.02 $7.05 $6.90 $77,859.27
Mid-America Apartment Communities Q4 AMC $1.09 $1.08 $1.67 $542.77
Molina Healthcare Q4 AMC $4.34 $4.35 $4.10 $8,368.44
Monolithic Power Systems Q4 AMC $2.85 $2.85 $3.17 $452.09
News Q2 AMC $0.18 $0.19 $0.14 $2,554.32
O'Reilly Automotive Q4 AMC $9.27 $9.17 $8.37 $3,863.67
Paycom Software Q4 AMC $1.81 $1.78 $1.73 $422.53
PayPal Holdings Q4 AMC $1.36 $1.36 $1.24 $7,871.79
STERIS plc Q3 AMC $2.17 $2.17 $2.02 $1,348.56
Uber Technologies Q4 BMO $0.18 $0.17 $0.29 $9,759.13
Walt Disney Co Q1 AMC $1.00 $0.99 $0.99 $23,660.84
Wynn Resorts Ltd Q4 AMC $1.22 $1.15 -$1.23 $1,739.48
Yum! Brands Q4 07:00 $1.38 $1.40 $1.31 $2,106.39

*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 Nachiket Tekawade and Haritha K P in Bengaluru.

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

To subscribe for The Day Ahead newsletter click here