Wake Up Wall Street (SPDR S&P 500 SPY): Risk comes off, but long weekend to see some position closing

Here is what you need to know on Friday, February 17:

Equity markets remained on the defensive after yet more hawkish data and central bank comments on Thursday. Bond yields continued to push higher and have now ticked up nearly 50 basis points in the past two weeks. Equity markets up here as a result look very rich. Little in the way of economic data appears on Friday, but a few Fed speakers will make an entrance. Hawkish rhetoric is likely to continue meaning risk assets are likely to fall and the US Dollar remain supported ahead of the long weekend.

The US Dollar is up to 104.40 for the Dollar Index, Gold is lower to $1,827, and Oil down to $76.38.

See forex today

European markets are lower, CAC -0.2%, Dax -0.7%, FTSE -0.2% and Eurostoxx -0.7%.

US futures also lower, Nasdaq -0.7%, Dow and S&P both -0.4%.

Wall Street top news

Deere (DE) raises forecasts for 2023 as it sees strong demand.

DraftKings (DKNG) posts strong results.

DoorDash (DASH) up 5% on strong earnings.

Redfin (RDFN) down on revenue forecasts.

Texas Roadhouse (TXRH) misses earnings.

Applied Materials (AMAT) provides earnings beat and strong guidance.

Vale (VALE) profits drops 30% on weak iron-ore prices, still beats estimates.

Upgrades and downgrades

Upgrades

Friday, February 17, 2023

Coinbase Global	COIN	Compass Point	Neutral>>Buy	$100
DraftKings	DKNG	BTIG Research	Neutral>>Buy	$24
TechnipFMC	FTI	Citigroup	Neutral>>Buy	$18
Cisco	CSCO	DZ Bank	Hold>>Buy	$58
Healthcare Services Group	HCSG	RBC Capital Mkts	Sector Perform>>Outperform	$14>>$17
Roku	ROKU	BofA Securities	Underperform>>Buy	$45>>$85
Virgin Galactic	SPCE	Wolfe Research	Underperform>>Peer Perform
ZIM Integrated Shipping	ZIM	JP Morgan	Neutral>>Overweight	$17.6>>$30.4
Kuehne & Nagel International	KHNGY	JP Morgan	Neutral>>Overweight

Downgrades

Friday, February 17, 2023

COMPANY	TICKER	BROKERAGE FIRM	RATINGS CHANGE	PRICE TARGET
Cohu	COHU	Craig Hallum	Buy>>Hold
PennyMac Mortgage	PMT	BTIG Research	Buy>>Neutral
C.H. Robinson	CHRW	JP Morgan	Neutral>>Underweight	$87
EPAM Systems	EPAM	Cowen	Outperform>>Market Perform	$390>>$370
Focus Financial	FOCS	Oppenheimer	Outperform>>Perform
Focus Financial	FOCS	Raymond James	Outperform>>Mkt Perform
Generac	GNRC	Wells Fargo	Overweight>>Equal Weight	$135
Canada Goose	GOOS	Evercore ISI	Outperform>>In-line	$25>>$20
InMode	INMD	Needham	Buy>>Hold
Toast	TOST	SMBC Nikko	Outperform>>Neutral	$26>>$23
TuSimple Holdings	TSP	HSBC Securities	Buy>>Hold	$15.9>>$2.2

Source: WSJ.com

Economic releases

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The SPDR S&P500 SPY has seen a reduction in risk as investors prepare for an upcoming long weekend. Wall Street has been keeping a close eye on the market due to the economic uncertainty that has arisen from the coronavirus pandemic.

As investors have been anticipating the effects of the virus, the SPDR S&P500 SPY has seen an increase in volatility in recent months. This has been largely due to the uncertainties surrounding the economic recovery, as well as the political tensions that have been at the forefront of the news.

However, investors have shown a sense of calm in the past few days, with the S&P500 SPY seeing a decline in its intraday volatility. This is likely due to the fact that investors are taking profits and reducing risk ahead of the long weekend.

Although Wall Street remains cautious, the recent decline in volatility signals some investors are regaining confidence in the markets. This could be taken as a sign that the markets are stabilizing, however, it is important to note that the market still presents risk and that investors must remain vigilant.

It is also important to note that the long weekend may bring with it some opportunity, with investors potentially closing out some positions and re-entering the markets after assessing their risk.

Overall, it appears that the long weekend will be accompanied by a period of decreased volatility on Wall Street. While investors must still remain vigilant and aware of any potential risks, the reduced risk could present opportunity for those looking to take advantage.