Asia-Pacific stocks, Fed, earnings, economic data

CNBC Pro: What a tech fund manager expects from Apple and Alphabet’s earnings this week

Microsoft released a disappointing earnings forecast last week, but its stock has since risen. What does this mean for other Big Tech companies that should report earnings?

Technology fund manager Jeremy Gleeson, who manages the £1.1 billion ($1.5 billion) AXA Framlington global technology fund, said there was enough bad news in Microsoft’s earnings to “encourage” investors to sell the stock.

However, the fact that the stock rose more than 2% afterwards is an “encouraging” sign for the rest of Big Tech’s earnings, Gleeson told CNBC’s “Squawk Box Europe.”

He shared his thoughts on what to expect from Apple and Alphabet this week.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

IMF raises global growth forecast for the year

The International Monetary Fund raised its global growth projection to 2.9% for 2023 due to better-than-expected domestic factors in several countries, such as the United States and the reopening of China.

China’s reopening of its economy after a strict Covid lockdown is expected to contribute to higher global growth.

However, the IMF warned that rising interest rates and Russia’s invasion of Ukraine will still weigh on activity. China’s reopening could also stagnate further, which could cloud the outlook, he added.

The revision would register a 0.2% improvement on the IMF’s previous forecast in October, but still marks a decline from a 3.4% expansion in 2022.

—Silvia Amaro, Lee Ying Shan

BYD shares jump 3.84% on stellar full-year earnings expectations

Shares of Chinese electric vehicle maker BYD rose 3.84% after the company announced expectations for record year-over-year profit.

In an exchange filing, BYD expects its net profit for 2022 to rise from 1.25 billion yuan ($185.5 million) to 16.3 billion yuan, marking an increase of around 1,200% from to 2021.

The meteoric growth projection is supported by the new energy vehicle industry, which BYD says is “experiencing continued explosive growth.”

“The company overcame the shock of a complex and challenging external environment and a number of unexpected factors to achieve such strong year-over-year growth in new energy vehicle sales,” the company said. report.

—Lee Ying Shan

China’s official manufacturing PMI rebounds

The official Purchasing Managers’ Index (PMI) of China’s manufacturing sector posted an expansion for the first time since October 2022, according to the National Bureau of Statistics.

China’s manufacturing activity for January came in at 50.1, above the 50-point threshold separating growth from contraction.

The reading beats Reuters’ forecast of 49.8 and is above December’s figure of 47.

Similarly, China’s non-manufacturing PMI, which includes the services, restaurant and construction sectors, rose to 54.5 from 41.6 in December.

—Lee Ying Shan

Samsung shares tumble after posting 69% drop in profits

Samsung Electronics posted a steep 69% drop in profit to 4.3 trillion won ($3.49 billion) on Tuesday due to a slump in demand for consumer electronics.

“Smartphone demand remained sluggish as the mass market contracted sharply due to continued inflation and geopolitical instability,” Samsung’s earnings release said.

Samsung the shares last traded down 3%.

—Lee Ying Shan

Adani Group Founder and Chairman’s Net Worth Drops $36 Billion

The net worth of Adani Group founder and chairman Gautam Adani fell $36 billion year-to-date as of Monday’s market close, according to the Bloomberg Billionaires Index.

Adani, Asia’s richest man and once second only to Elon Musk, fell from the top 10 richest in the world to 11th in Bloomberg’s Billionaires Index as of Monday’s close.

His net worth peaked at $150 billion on September 1. Feb. 20, 2022, before dropping to $84.4 billion as of Monday’s close, according to the index.

Adani Enterprises’ share price remains more than 25% lower since the start of the month, according to data from Refinitiv. It made a secondary sale of shares worth $2.5 billion, which was overshadowed by a rout that wiped out a total of $65 billion at Monday’s close.

CNBC Pro: Can Chinese stocks continue to rally? An investment bank thinks so — and names its top stock picks

The rally in Chinese equities accelerated on Monday as the Chinese benchmark edged closer to a bull market.

Bernstein analysts believe the rally needs to go further and reveal their top stocks to play it.

Pro subscribers can learn more here.

— Zavier Ong

South Korea’s industrial production in December plunges, beats forecast

South Korea’s industrial production in December fell 7.3%, marking its worst annualized reading in more than two and a half years since the May 2020 figure of a 9.6% fall.

The reading was steeper than Reuters expectations of a 5.1% drop, as well as November’s 3.4% drop.

—Lee Ying Shan

Stocks close lower on Monday, the Dow falls more than 250 points

Stocks closed lower on Monday as the Dow Jones Industrial Average posted a six-day winning streak.

The Dow fell 260.99 points, or 0.77%, to 33,717.09. The S&P 500 fell 1.3% to 4,017.77. The Nasdaq Composite fell 1.96% to 11,393.81.

—Sarah Min

Time to sell Tesla, says tech Carter Worth

You’re hereShares of have been on a “crazy ride” and it’s time to sell, according to Carter Worth, CEO and founder of Carter Braxton Worth Charting.

Shares of the electric vehicle maker have jumped 38% year-to-date, following last year’s 65% plunge. Last week, Tesla posted record revenue and a beating in profits. CEO Elon Musk also said the company is on track to potentially produce 2 million vehicles this year.

“It’s just a little crowded, steep; too far, too fast,” Worth said on CNBC’s “The Exchange.” The name is also the most active in the options market, he pointed out.

“It’s a tough level rally,” he added. “”The game here, if you’re long, is to get out and with fresh money I’ll be short.”

Tesla’s rally since the start of the year

Don’t count on this early 2023 rally, says JPMorgan’s Kolanovic

Investors should dampen the early 2023 rally, JPMorgan’s chief market strategist Marko Kolanovic warned.

The first quarter will likely mark a turning point for the market – and its upward trajectory is unlikely to continue, he said.

“Fundamental confirmation of the next upside leg may not come,” Kolanovic said in a note to investors on Monday. “And instead, markets could encounter an air pocket of weaker earnings and activity in the second and third quarters.”

He predicts that the corporate earnings backdrop will begin to decline as pricing power reverses.

The strategist’s comments come as stocks take a break from their latest run. Still, the S&P 500 is up more than 5% on the year, while the Nasdaq Composite has rebounded more than 9%. The Dow Jones Industrial Average is up about 2.3% in 2023.

Kolanovic also foresees a “postponement rather than an erasure of the risk of recession”. Although U.S. gross domestic product grew at an annualized 2.9% in the fourth quarter, there is underlying weakness in that headline figure, as “private demand posted its weakest growth since the start of recovery,” the strategist said.

“A weak trajectory for U.S. domestic demand keeps recession risk high, even as tight labor markets delay that recession risk,” Kolanovic wrote. “Meanwhile, tight real policy rates represent a permanent headwind, keeping the risk of a recession later in the year elevated.”

Darla Mercado


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