Morgans AM: Monday, 16 January 2023

Morgans Financial Limited

US equity markets climbed as investors weighed a flurry of bank earnings results for the fourth quarter and fresh data on consumer sentiment and inflation expectations - Dow rose +113-points or +0.33%, Caterpillar Inc rose +1.33% to US$258.46, logging a fourth consecutive record closing high after Bank of America analysts turned bullish on the company in the belief that the construction- and mining-equipment maker will weather a 2023 recession better than many might expect. Bank of America upgraded their rating on Caterpillar to ‘Buy’ from ‘neutral’, and lifted their target price by +36% to US$295. The broader S&P500 added +0.40%, with Consumer Discretionary (up +0.97%) sitting atop the primary sector leaderboard on Friday (13 January) and leading eight of the eleven primary sectors higher. The more defensive Real Estate (down -0.61%) and Utilities (-0.44%) underperformed. Tesla Inc fell -0.94% after the electric vehicle cut prices in the U.S. and Europe again, according to listings on the company’s website last Thursday night AEST (12 January). The Nasdaq gained +0.71%. The small capitalisation Russell 2000 added +0.58%.