Stock Futures Rise to Kick Off 2023

All three major indexes are fresh off their worst year since 2008

Deputy Editor
Jan 3, 2023 at 9:19 AM
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Stock futures are pointed higher ahead of the first trading day of 2023, with all three benchmarks looking to start the year on a strong note after posting their worst annual performances since 2008. The Dow Jones Industrial Average (DJIA) is up triple digits, as investors look ahead to the first economic indicators of the year, with the S&P Global manufacturing purchasing manager's index (PMI) and construction spending data due out later this morning. 

Continue reading for more on today's market, including:

  • Investors should watch this e-tailer in 2023.
  • How the market closed out 2022
  • Plus, TSLA deliveries miss estimates; PYPL upgraded; and LIN falls as Russia freezes assets. 

Futures Jan3

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1 million call contracts and 847,366 put contracts traded on Friday. The single-session equity put/call ratio fell to 0.84 and the 21-day moving average stayed at 0.79.
  2. Tesla Inc (NASDAQ:TESLA) is down 5% premarket, after the electric vehicle (EV) giant reported a 40% growth in deliveries, which missed analyst expectations due to logistical issues and slowing demand. The stock also received no fewer than three price-target cuts this morning. In 2022, the equity shed 65%. 
  3.  Truist Securities upgraded PayPal Holdings Inc (NASDAQ:PYPL) to "buy" from "hold" with a price-target hike to $95 from $75. The brokerage cited potential growth for the resurgent e-tail space. PYPL shares are up 2.2% in electronic trading, and looking to bounce further from last week's more than five-year lows. 
  4. Germany-based industrial gas company Linde PLC (NYSE:LIN) is down 3% before the bell, after news that Russia has frozen $488 million of the company's assets. In the past three months, however, LIN has added 21%. 
  5. Once again, the S&P U.S. manufacturing PMI is due out today, as well as construction spending data.


Investors Eye China's Reopening

Stocks in Asia were mixed today, as investors assessed China’s reopening plans. China’s Shanghai Composite and Hong Kong’s Hang Seng added 0.9% and 1.8%, respectively, brushing off a Caixin PMI that slipped further into contraction territory. The Nikkei in Japan was unchanged, after it was reported that the Bank of Japan (BoJ) is considering raising its inflation forecast this month to move closer to the central bank’s 2023 and 2024 target of 2%. Rounding out the region, South Korea’s Kospi shed 0.3%.

European traders are also monitoring China’s reopening as they await pertinent European inflation figures. Germany’s preliminary inflation figures for last month are due out this afternoon, followed by similar figures from France, Italy, and the whole euro area over the course of the week. In response, the major bourses are notably higher, with London’s FTSE 100, the German DAX, and the French CAC 40 last seen up 1.2%, 0.7%, and 0.5%, respectively.


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