Memory Stocks Extend Their Rally

U.S. stock futures are slightly higher in premarket trading and are extending yesterday’s gains. The moves come after stocks snapped a two-session losing streak. Tech stocks were among the market’s biggest winners in yesterday’s session after Taiwan Semiconductor (TSM) gave blowout fourth-quarter results, which supported the sector. Taiwan Semi jumped more than 4%, while Nvidia (NVDA) and Advanced Micro Devices (AMD) gained about 2% each.

Bank stocks also rebounded yesterday after Goldman Sachs (GS) and Morgan Stanley (MS) posted solid fourth-quarter results. Goldman shares gained more than 4%, while Morgan Stanley added nearly 6%.

The three major indices are now nearly flat on the week while the small-cap Russell 2000 (RUT) settled at a record high on Thursday. Investor focus today will be on headline geopolitical risks, data and earnings fallout. Markets are closed on Monday for observance of Martin Luther King Day.

Snapshot (as of 7 AM ET)

• Oil (/CL) – Oil prices are up over 1% near $59.70 a barrel as market participants weighed concerns about supply risks, though the chances of a U.S. strike on Iran have receded. Crude fell nearly 5% on Thursday after Trump said Tehran’s crackdown on the protesters was easing, allaying worries about possible military action that could disrupt oil supplies.
• Gold (/GC) – Gold is down 0.6% near $4,595 after stronger-than-expected U.S. economic data dampened expectations of the U.S. Federal Reserve cutting interest rates sooner and softening geopolitical frictions shrunk safe-haven demand for the metal.
• Bitcoin (/BTC) – The Crypto Future is up 0.3% near 95,600 in premarket trading.
• VIX – The CBOE Volatility Index was down 5.4% on Thursday and settled at 15.84 as stocks were higher.
• U.S. Dollar (/DX) – The U.S. Dollar Index is relatively flat on the session at 99.244.

Biggest Premarket Movers (as of 7 AM ET)

1. SanDisk (SNDK): +5.39%
2. Micron Technology (MU): +5.31%
3. Western Digital (WDC): +3.92%
4. Seagate Technology (STX): +3.65%
5. PNC Financial (PNC): +2.77%

1. The Mosaic (MOS): -6.45%
2. Regions Financial Corp (RF): -4.45%
3. Albemarle Corp (ALB): -3.78%
4. J B Hunt Transport Services (JBHT): -3.64%
5. Constellation Energy (CEG): -2.99%

Economic Data

• 9:15 AM ET: Industrial Production
• 10:00 AM ET: Housing Market Index
• 10:50 AM ET: Fed’s Collins Speaks
• 11:00 AM ET: Fed’s Bowman Speaks
• 3:30 PM ET: Fed’s Jefferson Speaks

Notable Earnings

• Premarket: MTB, PNC, RF, STT, WIT
• Postmarket: N/A
• Premarket Tuesday: MMM, DHI, FAST, FITB, KEY, USB
• Postmarket Tuesday: OZK, IBKR, NFLX, UAL, ZION

Upgrades/Downgrades

• JPMorgan upgrades Honeywell (HON) to Overweight from Neutral
• Susquehanna upgrades Seagate (STX) to Neutral from Negative
• Morgan Stanley upgrades Rocket Lab (RKLB) to Overweight from Equal Weight
• JPMorgan downgrades 3M (MMM) to Neutral from Overweight
• BofA downgrades ConocoPhillips (COP) to Underperform from Neutral
• Barclays downgrades HP Inc (HP) to Underweight from Equal Weight

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

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