TOP NEWS • GE forecasts higher profit, cash flow in 2022 General Electric forecast higher profit and free cash flow this year after reporting stronger-than-expected earnings in the quarter through December.
• J&J expects up to $3.5 billion in COVID vaccine sales this year Johnson & Johnson forecast $3 billion-$3.5 billion in revenue for its COVID-19 vaccine this year, compared to $2.39 billion it generated in 2021, even as the drugmaker faces manufacturing issues and uneven demand for the shot.
• 3M posts nearly 5% fall in profit as supply chain snarls, costs bite Industrial giant 3M posted a 4.7% fall in quarterly profit, as sales in its transportation and electronics segments were impacted by global supply bottlenecks, rising raw material costs and a shortage of semiconductors.
• PREVIEW-Cybertrucks, new factories in focus as Tesla set to report record earnings Tesla is expected to post record revenue on Wednesday, but analysts and investors are focusing on how fast Tesla can scale up production at two new factories this year with technology changes as well as battery and other supply chain constraints clouding the outlook.
• AmEx profit beats expectations as card spending hits record levels American Express exceeded Wall Street estimates for fourth-quarter profit on Tuesday as spending on its credit cards jumped to record levels.
BEFORE THE BELL Futures for Canada's main stock index tumbled as investors feared hawkish signals from upcoming central bank meetings. U.S. stock index futures were down before the start of Federal Reserve’s two-day meeting. European shares rose, supported by upbeat earnings from Ericsson and Logitech. Asian equities ended in the red on concerns about the military conflict in Ukraine. A stronger U.S. dollar hurt gold prices. Oil prices bounced back, recovering some of the previous day's losses.
STOCKS TO WATCH • PolyMet Mining Corp: The Minnesota Court of Appeals on Monday ordered state regulators to reconsider a wastewater permit that was granted to PolyMet to build an open-pit copper mine, though judges rejected six other challenges to the permit from environmentalists. The appeals court ordered the Minnesota Pollution Control Agency to reconsider whether any groundwater runoff from the proposed mine would pollute navigable waterways. The decision does not cancel the permit but it does further delay the timeline for when construction could begin on the $1 billion project at a time when the United States is trying to boost production of copper and other metals needed for electric vehicles.
ANALYSIS Baptism by fire awaits today's rate-hike rookies Today's central bankers have the unenviable task of weaning a pandemic-hit global economy off cheap money amid unprecedented sovereign debt levels and with asset prices inflated by years of stimulus and near-zero interest rates.
ANALYSTS' RECOMMENDATION • Dentalcorp Holdings Ltd: Scotiabank resumes with sector outperform rating, following the successful completion of a bought deal offering of 7,055,250 subordinate voting shares.
• Rogers Communications Inc: CIBC raises rating to outperformer from neutral, viewing the Shaw Communications deal as a material positive for the company.
• Trevali Mining Corp: Canaccord Genuity cuts rating to sell from hold on weak fourth-quarter production and 2022 guidance.
• Turquoise Hill Resources Ltd: Scotiabank raises target price to C$26 from C$22 after a new partnership agreement with the Government of Mongolia that will allow the development of the Oyu Tolgoi Phase II underground Cu-Au project to move forward.
ECONOMIC EVENTS No economic indicators are scheduled for release.
COMPANIES REPORTING RESULTS January 25: Canadian National Railway Co: Expected Q4 earnings of C$1.53 per share Metro Inc: Expected Q1 earnings of 87 Canadian cents per share
January 26: Celestica Inc: Expected Q4 earnings of 38 cents per share Methanex Corp: Expected Q4 earnings of $2.47 per share NovaGold Resources Inc: Expected Q4 loss of 4 cents per share
CORPORATE EVENTS (All timings in U.S. Eastern Time) 1000 Metro Inc: Annual Shareholders Meeting 1330 Metro Inc: Q1 earnings conference call 1630 Canadian National Railway Co: Q4 earnings conference call
EX-DIVIDENDS Royal Bank of Canada: Amount C$1.20
(All analysts' estimates are according to I/B/E/S Refinitiv data)
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