2024-02-27 16:33

Feb 27 (Reuters) - Barclays on Tuesday raised its year-end 2024 target for the S&P 500 stock index (.SPX) , opens new tab to 5,300 from 4,800, pointing to resiliency in the U.S. economy and earnings strength from "Big Tech." Barclays' new target represents roughly 4.5% upside to the benchmark index's closing price on Monday. The new target "reflects our view that inflation will continue to normalize while the economy remains relatively resilient, and that Big Tech will maintain leadership in ... earnings growth," the Barclays strategists said in a research note on Tuesday. The strategists bumped up their S&P 500 earnings estimate for full-year 2024 to $235 per share from $233. "Big Tech EPS estimates have improved considerably, raising the floor for overall S&P 500 earnings," the strategists said. Broadly, Barclays said the bull and bear cases for the S&P 500 center on Big Tech, reflecting the group's growing influence on the U.S. equity market. Strong Big Tech earnings could push the index to 6,050, while disappointing results along with a weakening economic backdrop could send the index down to 4,500, Barclays said in the note. "We believe that risk/reward is tilted toward the bull case, as macro data suggest that the odds of an economic re-acceleration are beginning to outweigh the probability of even a mild recession," the strategists said in the note. Barclays is the latest brokerage to lift its S&P 500 target price amid a strong start to the year that has seen the index gain over 6% so far in 2024 and hit record highs. Last week, UBS Global Research raised its year-end forecast for the S&P 500 to 5,400, the highest projection among major global brokerages. A Reuters poll of 40 strategists published last week estimated the S&P 500 would finish 2024 at 5,100. https://www.reuters.com/markets/us/barclays-boosts-sp-500-target-strong-us-economy-big-tech-profits-2024-02-27/

2024-02-27 16:11

WASHINGTON, Feb 27 (Reuters) - U.S. consumer confidence retreated in February after three straight monthly increases as households worried about the labor market and the domestic political environment. The Conference Board said on Tuesday that its consumer confidence index slipped to 106.7 this month from a downwardly revised 110.9 in January. Economists polled by Reuters had forecast the index little changed at 115.0 from the previously reported 114.8. "February's write-in responses revealed that while overall inflation remained the main preoccupation of consumers, they are now a bit less concerned about food and gas prices, which have eased in recent months, said Dana Peterson, chief economist at The Conference Board in Washington. "But they are more concerned about the labor market situation and the U.S. political environment." Consumers' inflation expectations fell to 5.2%, the lowest level since March 2020, from 5.3% in January. https://www.reuters.com/markets/us/us-consumer-confidence-ebbs-february-inflation-expectations-fall-2024-02-27/

2024-02-27 15:53

Feb 27 (Reuters) - Shares of Intuitive Machines (LUNR.O) , opens new tab were down 15% on Tuesday after the space exploration company said its Odysseus moon lander has roughly 10 to 20 hours of battery life left. The stock briefly pared losses, following the latest update from the spacecraft's flight controllers, but is set to lose nearly all the gains since Thursday, when the lander made the first U.S. touchdown on the lunar surface in more than half a century and the first ever by the private sector. The company had said on Monday its lunar mission could end ahead of schedule after a sideways touchdown hindered communications and solar charging capability. The stock fell 35% on Monday, its worst drop in about a year. "The reaction to the stock ... that's a bit of an overreaction by the market," said Cantor Fitzgerald senior analyst Andres Sheppard, as Intuitive has collected more than 95% of their target revenue of $130 million from the mission. Only about 18% of Intuitive Machines' outstanding shares are available to trade, according to LSEG data, making the stock that went public last year prone to high levels of volatility. Intuitive had on Friday said Odysseus, which is carrying payloads for its main customer NASA, would have enough power to operate for nine to 10 days under a "best-case scenario". It is not clear yet as to how much scientific data might be lost due to the shortened length of the mission. Some analysts said they see no impact of the issues faced over the past few days on the company's next two missions and payloads scheduled later this year. Intuitive has plans to use a Nova C lander, the same class as Odysseus for further missions set for later this year and early next year. https://www.reuters.com/technology/space/intuitive-machines-shares-tumble-moon-mission-nears-premature-end-2024-02-27/

2024-02-27 14:56

NEW YORK, Feb 27 (Reuters) - U.S. annual home prices rose again in December, although housing price growth slowed during the fourth quarter of 2023 from the prior three-month period. Home prices grew 6.6% on a yearly basis from an upwardly revised 6.7% in November, a survey released by the Federal Housing Finance Agency (FHFA) showed on Tuesday. The slight decrease in appreciation followed on the heels of the swiftest annual growth in November since December 2022. On a monthly basis, home prices increased 0.1% in December from an upwardly revised 0.4% in November. "U.S. home prices increased modestly over the course of 2023," said Anju Vajja, acting deputy director for FHFA's division of research and statistics. "However, the market showed signs of softening as house price appreciation was lower in the fourth quarter of the year than in the previous quarter." Prices increased 1.5% sequentially in the final three months of the year, down from 2.1% in the previous three months, FHFA said. After nearing 8% during the fourth quarter of 2023, the average rate on the 30-year fixed-rate mortgage has remained below 7% since early December 2023, according to Freddie Mac data. The Federal Reserve has held off on raising its benchmark overnight interest rate since July. On a yearly basis, prices gained in all U.S. regions. Annual prices in December appreciated the most in New England and the Middle Atlantic, rising by 10.1% and 9.1%, respectively. https://www.reuters.com/markets/us/us-annual-home-prices-rising-despite-fourth-quarter-slowdown-fhfa-says-2024-02-27/

2024-02-27 13:16

Feb 27 (Reuters) - Viking Therapeutics (VKTX.O) , opens new tab said on Tuesday its experimental drug to treat obesity helped patients achieve "significant" weight loss in a mid-stage study, leading its shares to more than double before the bell. The drugmaker is contending for a slice of the potential $100 billion obesity treatment market that is currently dominated by powerful new weight-loss drugs such as Eli Lilly's (LLY.N) , opens new tab Zepbound and Novo Nordisk's (NOVOb.CO) , opens new tab Wegovy. Viking's drug, formulated to be an under-the-skin injection, belongs to the same class of treatments as Zepbound and Wegovy known as GLP-1 agonists, which have seen strong interest from investors. The GLP-1 agonist medicines have proved effective in treating diabetes and weight loss and may also help cut the risk of stroke or heart attack, making them potentially life-changing for people around the world. Viking's drug candidate, VK2735, helped patients achieve up to 14.7% mean weight loss after 13 weeks of treatment, according to data from the study. The trial had enrolled 176 overweight adults with at least one weight-related comorbid condition. Shares of the company more than doubled to $83.48 in premarket trading on Tuesday. The drug targets two gut hormones, gastric inhibitory polypeptide (GIP) and glucagon-like peptide-1 (GLP-1), which slows digestion and helps people feel full for longer. Viking Therapeutics said it plans to meet with the U.S. Food and Drug Administration to discuss further steps for the development of its drug. https://www.reuters.com/business/healthcare-pharmaceuticals/viking-therapeutics-weight-loss-drug-succeeds-mid-stage-study-2024-02-27/

2024-02-27 13:03

WARSAW, Feb 27 (Reuters) - Polish Prime Minister Donald Tusk said on Tuesday he could not rule out widening a national ban on imports of Ukrainian grains to other products if the European Union does not act to protect the bloc's markets. Tusk made the remarks during a visit to Prague as thousands of Polish farmers took to the streets of Warsaw, carrying the national flag and blowing handheld horns, escalating a protest against food imports from Ukraine and EU green rules. Farmers across Europe have been protesting for weeks against constraints placed on them by the EU's "Green Deal" regulations meant to tackle climate change, as well as rising costs and what they say is unfair competition from outside the EU, particularly Ukraine. The EU in 2022 waived duties on Ukrainian food imports following Russia's invasion of Ukraine. Poland last year extended a ban on Ukrainian grain imports. "We are talking about it with the Ukrainian side - that it will be necessary to expand the embargo to other products if the European Union does not find more effective ways to protect the European and Polish markets," Tusk said on Tuesday. Polish Agriculture Minister Czeslaw Siekierski said in a Tuesday evening interview on Polsat News TV that further talks with Ukraine on solutions were planned for Wednesday and various possibilities were being considered. "Tomorrow we will also talk about it with Ukraine's minister of economy, who will be a guest at the Ministry of Development and New Technologies," he said, adding that he would be participating. He said Polish farmers were invited to the agriculture ministry for talks on Thursday. Speaking after Siekierski on Polsat News, protest organiser Szczepan Wojcik said the invitation was welcome, but warned of more protests if no progress was made during the next few days. "Further protests in Warsaw have already been announced for March 6. Farmers are already organising on the roads, and border crossings will continue to be blocked," he said. Asked about the possibility of further escalation, Wojcik said, "The farmers are desperate. ... The ball is in the government's court." Earlier in the day, Tusk said the EU had to solve the problems created by its decision to open its borders to imports of Ukrainian food products. He added that Poland was ready to co-finance purchases of Polish, European and Ukrainian food and agricultural products to be sent as humanitarian aid to famine-stricken countries, and that "Europe should certainly find funds for this." Back home, farmers rallied in central Warsaw before marching towards parliament and then Tusk's office. A city hall official cited by PAP state news agency put the number of protesters around 10,000. "We are protesting because we want the 'green deal' to be lifted, as it will lead our farms to bankruptcy with its costs...that are not comparable to what we harvest and to what we are paid," said Kamil Wojciechowski, 31, a farmer from Izbica Kujawska in central Poland. "What we're paid for our work, it has decreased because of the influx of grain from Ukraine and this is our second demand - to block the influx of grain from Ukraine," he said. The farmers began a series of protests throughout the country earlier this month, which included a near-total blockade of all Ukrainian border crossings, as well as disruptions at ports and on roads nationwide. "We won't give up. We have no choice. Our farms will go bankrupt, we will lose our livelihoods," Pawel Walkowiak, 47, a corn and wheat producer from Konarzewo in western Poland, said. The city hall official said Tuesday's protest in Warsaw took place without major incidents. https://www.reuters.com/world/europe/polish-farmers-rally-warsaw-against-eu-policies-ukraine-imports-2024-02-27/