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2023’s First Fed Day! | Long $SYK

Well folks, today marks the first FOMC meeting of the year with the Fed slated to hike interest rates by 25 bps, bringing the Fed Funds Rate to a range of 4.5 to 4.75%; moreover, there is a 98.4% overall likelihood that this will be the case. Additionally, we have something special for you today with a long-form equity research piece on Union Pacific Railroad ($UNP-NYSE) by The Globetrotting Investor. Check it out here and read on for your daily dose of market inspiration within this 208th Coachman’s Report!


Markets in Review

With the market printing a strong green bar yesterday, today is shaping up to be a different story with the Dow, S&P and Nasdaq trading down to the tune of 30 bps in the premarket today. That being said, the S&P is now further above its previous price channel’s resistance and as a result, any surprising Fed commentary today or jobs data on Friday could spark large risk-off sentiments. Despite the market’s advance, there have still been strong flows into the fixed income space with yields on USTs being pushed down 3-5 bps across the board since Monday.


Long: Stryker Corporation (SYK-NYSE) | Timeline: 1 day

Stryker Corporation (SYK), which operates as a medical technology company under two segments, reported stellar earnings yesterday after the market closed. The company beat earnings and revenue estimates by 5.78% and 4.79%, respectively, “driven by strong commercial execution and improved supply," said Kevin Lobo, CEO. (Full Story)

Turning to the chart, SYK has now recovered to yearly highs in the $260s, up from just under $200 back in July of 2022. That said, as the price enters a new upwards trending channel, traders should expect a bounce off its support, supported by an extremely bullish Stochastic RSI and a positive earnings report.


Zooming Out...

Defense Policy Divergence

Following last week’s announcement of Western tank deliveries to Ukraine (our coverage here) members of the NATO alliance are split on further actions. On one side, it was announced yesterday that Austria and Hungary are opposed to sending weaponry due to the risk of escalation. On the other hand, the United States is currently drafting another multibillion-dollar aid package that will supply the Ukranians with longer-range weaponry in the form of ground-launched bombs or missiles.

The US has been reluctant to accept Ukrainian requests for F-16 fighters and long-range missiles like the ATACMS with its 297km range, as it would allow Ukraine to launch strikes deep into Russian territory and mark another drastic escalation to the conflict. With that being said- it’s rumoured that Ukraine will be receiving weapons within a roughly 150km radius through this most recent package.

McKinsey Missteps?

Through a parliamentary committee hearing on Monday, it was revealed that the Canadian government issued an 81-year contract to consulting conglomerate McKinsey for computer-related services. The committee was initially established after contracts awarded to McKinsey totalled nearly $117M CAD throughout the seven years that Trudeau has been in office. The $117M CAD represents an over 50-fold increase from his predecessor Stephen Harper’s nine years in office, as his contracts with the firm only totalled $2.2M CAD.

Moreover, this committee has sparked concern amongst Canadians, as it was revealed that McKinsey has been influential within the state everywhere from pandemic management to national defense guidance.


Making Headlines...

U.S. private payrolls miss expectations in January

  • U.S. private payrolls increased far less than expected in January, hinting at some cooling in the labor market. (Full Story)

Russia's top prosecutor criticizes mass mobilization, telling Putin to his face that more than 9,000 were illegally sent to fight in Ukraine

  • Igor Krasnov told Russian President Vladimir Putin that almost 9,000 reservists were mobilized illegally, according to a transcript of their conversation released by the Kremlin on Tuesday. He said that many of them should not have been sent in the first place because of ill health, and were later returned to Russia. (Full Story)

Boeing bids farewell to an icon, delivers last 747 jumbo jet

  • Boeing bid farewell to an icon on Tuesday, delivering its final 747 jumbo jet as thousands of workers who helped build the planes over the past 55 years looked on. (Full Story)

ChatGPT Unleashes Stock Trader Stampede for Everything AI

  • A $480 billion chipmaker whose processors are used for complex computing tasks. A digital-media company seeking to mine nascent technologies for content. A tiny software firm whose shares traded below $1 for most of December. (Full Story)


Chart of the Day: S&P 500 Sahre Buybacks & Dividends from 2007


"I'd rather regret the things I've done than regret the things I haven't done."

- Lucille Ball


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