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News from WEF, data and earnings

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Stocks on the move: Leonardo up 4%, Ocado down 8%

Shares of British digital grocer Ocado fell more than 8% in early trade to the bottom of the Stoxx 600 after the company missed fourth-quarter sales estimates as customers bought less per order ami the U.K.’s cost of living crisis.

At the top of the European blue chip index, Italian aerospace and defense company Leonardo added 4.5%.

CNBC Pro: This under-the-radar global carbon capture stock could soar by 65%, investment banks say

Shares of an under-the-radar carbon capture company are expected to rise by 65% due to increasing global demand for emissions reduction technology, according to investment banks analyzing the stock.

The company’s latest innovation, revealed last week, could cut the energy needed to capture carbon and improve the company’s profitability in the future, according to analysts at a German investment bank.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Where the major indexes stand coming off the first two weeks of 2023 trading

With the first two weeks of 2023 trading done, the three major indexes are up so far for the year.

The Nasdaq Composite is leading the way, adding 5.9% as investors bought beaten-down technology stocks on rising hopes of an improving landscape for growth holdings. The S&P 500 and Dow followed, gaining 4.2% and 3.5%, respectively.

— Alex Harring

China’s retail sales beat estimates, economy expands more than expected

China’s December retail sales beat estimates, falling only 1.8% on an annualized basis, significantly better than the decline of 8.6% projected in a Reuters poll.

Industrial output also grew 1.3% in December, higher than expectations for an increase of 0.2%.

In the fourth quarter, China’s economy expanded by 2.9% on an annualized basis, better than the expected 1.8% growth. While quarterly growth was flat, it still beat expectations for a 0.8% contraction.

Despite better-than-expected data, the Chinese offshore yuan weakened sharply from 6.7403 to 6.7563 against the U.S. dollar shortly after the release.

European markets: Here are the opening calls

European markets are heading for a flat to lower open Tuesday, with concerns about the global economy high on the agenda at the World Economic Forum in Davos this week.

The U.K.’s FTSE 100 index is expected to open 1 point higher at 7,862, Germany’s DAX 31 points lower at 15,111, France’s CAC down 14 points at 7,033 and Italy’s FTSE MIB down 37 points at 25,836, according to data from IG.

CNBC will be speaking to a range of delegates at the World Economic Forum on Tuesday, including the presidents of Spain, Latvia, Lithuania and Poland and the CEOs of Unilever, UBS, Allianz and Swiss Re, among many others. Follow our coverage here.

— Holly Ellyatt

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Business

European markets open to close, stock moves, news and data

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Stocks on the move: Virgin Money up 14%, Ocado down 7%

Virgin Money shares jumped more than 13% to lead the Stoxx 600 by mid-afternoon after the company reported a rise in pretax profit for the 2022 fiscal year and announced a £50 million ($59.4 million) share buyback program.

At the bottom of the European blue chip index, British online grocer Ocado fell more than 7%.

– Elliot Smith

FTX is ‘not idiosyncratic,’ investment advisory firm says

Paul Gambles of MBMG Group says there are more shock waves to come for the cryptocurrency industry and warns that liquidity is drying up.

Excess liquidity in the tech sector must be removed, investment management firm says

Dan Scott of Vontobel Asset Management discusses layoffs in the tech sector.

German October wholesale inflation well below expectations

Germany’s Producer Price Index came in at -4.2% month-on-month in October, the federal statistics office said Monday, well below a Reuters consensus forecast for a 0.9% increase.

On an annual basis, wholesale prices were up 34.5%, below expectations of a 41.5% incline.

– Elliot Smith

Stocks on the move: Virgin Money up 13%, IDS down 5%

Virgin Money shares jumped more than 13% to lead the Stoxx 600 in early trade after the company reported a rise in pretax profit for the 2022 fiscal year and announced a £50 million ($59.4 million) share buyback program.

At the bottom of the index, shares International Distributions Services — trading as Royal Mail — fell 5% as the company faces further waves of damaging industrial action from workers over the holiday season.

Oil prices drop as China faces Covid concerns, Goldman Sachs cuts forecast

Oil prices fell by nearly a dollar as Covid concerns in China rose with the nation seeing the first virus-related deaths recorded since May this year.

Brent crude futures shed less than a dollar, or 0.9%, to stand at $86.83 per barrel and U.S. West Texas Intermediate futures dropped 1.09% to $79.21 per barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 per barrel for the fourth quarter of 2022, citing dented China demand with rising Covid concerns and insufficient details from the latest Group of 7 nations’ price cap on Russian oil.

“We believe the market has a right to be anxious about forward fundamentals,” economists including Jeffrey Currie said in the note, adding the potential of further lockdowns in China is equivalent to the latest production cut by OPEC+.

— Lee Ying Shan

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, are ‘deeply undervalued’

This year’s 30% decline in the value of Chinese Big Tech stocks, such as Alibaba, has made them “incredibly cheap,” according to investment bank China Renaissance.

Its head of equities, Andrew Maynard, not only believes that the stock market appears to have bottomed, but also that investors may miss out on a rally if they remain underweight on China.

“Without a shadow of a doubt, being underweight China is going to cost you going forward,” Maynard said.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Markets are watching for more clues on Fed hikes and the economy in the week ahead

Investors may be a bit more cautious in the week ahead, with stocks seeking direction in quiet trading and the bond market’s warnings about recession getting louder.

The Thanksgiving holiday on Thursday should mean markets will likely be quiet Wednesday and Friday. Traders will be monitoring reports on Black Friday holiday shopping for feedback on the consumer.

“It’s really a week where data dependence is the key phrase,” said Julian Emanuel, senior managing director at Evercore ISI. “The bias [for stocks] is higher unless data continues to deteriorate and the Fed stays on its hawkish slant… which has clearly been reinforced in the last 48 hours.”

Check out our full deep dive on what to expect in the week ahead here.

— Patti Domm, Tanaya Macheel

CNBC Pro: Morgan Stanley’s Mike Wilson predicts the S&P 500’s bottom, calls it a ‘terrific buying opportunity’

Morgan Stanley’s Chief U.S. Equity Strategist Mike Wilson says we’re in the “final stages” of the bear market, but the situation will remain challenging for a while longer.

He predicts when — and at what level — the S&P 500 will hit a “new low.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

European markets are set to open lower on Monday as investors continue to monitor the uncertain economic outlook.

The U.K.’s FTSE index is expected to open 15 points lower at 7,386, Germany’s DAX down 54 points at 14,378, France’s CAC down 17 points at 6,629 and Italy’s FTSE MIB down 54 points at 24,445, according to data from IG.

There are no major earnings Monday. Data releases include German producer prices for October.

— Holly Ellyatt

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European markets weigh up U.S. inflation data, earnings

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LONDON — European stocks advanced on Thursday with investors around the world reflecting on the latest inflation data and earnings out of the U.S.

The pan-European Stoxx 600 climbed 0.8% in early trade, with basic resources adding 2.2% to lead gains as all sectors and major bourses entered positive territory.

Global markets are digesting the latest U.S. inflation data which rose higher than expected in September, increasing pressure on the U.S. Federal Reserve to raise rates sooner rather than later.

The U.S. consumer price index jumped 0.4% in September from the month prior and 5.4% year over year, the Labor Department reported Wednesday. Economists expected to see a month-to-month increase of 0.3% or annualized rate of 5.3%, according to Dow Jones.

Minutes released Wednesday afternoon from the Federal Open Market Committee’s September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.

Also in focus is the third-quarter earnings season which kicked off on Wednesday with JPMorgan Chase; the bank reported that quarterly profit topped expectations following a boost from better-than-expected loan losses. Bank of America, Citigroup, Morgan Stanley and Wells Fargo are all scheduled to report earnings before the bell Thursday.

In Asia-Pacific overnight, stocks were mostly higher as investors reacted to the release of Chinese inflation data for September which showed the producer price index for September soared 10.7% compared to a year ago, slightly above expectations in a Reuters poll for a 10.5% increase. U.S. stock futures rose in early premarket trade on Thursday.

Stock picks and investing trends from CNBC Pro:

Looking ahead to CNBC’s coverage on Thursday, Russian Energy Week continues and we will be interviewing Russian Deputy Prime Minister Alexander Novak, who was the former energy minister, later this morning.

On Wednesday, CNBC hosted a panel with Russian President Vladimir Putin and the CEOs of BP, TotalEnergies, ExxonMobil and Daimler with topics ranging from gas to geopolitics.

Putin told CNBC that Europe’s energy crisis was largely of its own making and said Russia was ready to boost supplies to the region, if asked.

In terms of individual share price movement, SoftBank-backed British e-commerce company THG climbed more than 8% in early trade, beginning to rebound from a 35% rout on Tuesday after a capital markets day that backfired.

At the bottom of the European blue chip index, Danish health care company Demant fell 4.1% after a voluntary recall by its Cochlear implants business.

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