Morning Movers: GameStop Tumbles, Monster Beverage Jumps, and Bank of America Sinks

Stocks look set for an ever so slightly higher open as bank stocks report earnings today.

S&P 500 futures are little changed while Dow Jones Industrial Average futures have ticked up 0.1%. Nasdaq Composite futures have risen 0.1%.

Monster Beverage (MNST) has climbed 2.3% to $44.12 following its investor day presentation following yesterday’s close.

GameStop (GME) has tumbled 7.8% to $22.80 after reporting that same stores sales had dropper nearly 19% during the 2016 holiday season. GameStop was also cut to Neutral from Outperform at Macquarie.

Paccar (PCAR) has risen 1.4% to $67.25 after getting upgraded to Outperform from Market Perform at both BMO and RBC.

CNH Industrial (CNHI) has gained 2% to $9.07 after getting upgraded to Neutral from Underperform at BofA Merrill Lynch.

JPMorgan Chase (JPM) has ticked up 0.1% to $86.31 after its fourth-quarter earnings topped the Street consensus.

Wells Fargo (WFC) has dropped 0.8% to $54.08 after missing earnings forecasts.

Bank of America (BAC) has fallen 0.8% to $22.74 after beating earnings forecasts but missing on revenue.

Trump Slump: Dow Drops 60 Points, Nasdaq Fails to Hit New High

Stocks declined today on concerns that the Trump rally has gotten overdone, as equities followed Treasury yields and the dollar lower.

The S&P 500 declined 0.2% to 2,270.44 at 4:46 p.m. today, while the Dow Jones Industrial Average declined 63.28 points, or 0.3%, to 19,891.00. The Nasdaq Composite fell 0.3% to 5,547.49. The Nasdaq’s five-day streak of new highs came to an end.

NatWest’s Blake Gwinn and team note that the losses weren’t as bad as they could have been:

The Hot Stock: Tiffany Jumps 3.6%

Tiffany (TIF) rose to the top of the S&P 500 today after Richemont said it had seen strong jewelry sales, buoying luxury retailers.

Tiffany gained 3.6% to $80.55 today, while the S&P 500 declined 0.2% to 2,270.44.

In a report from Jan. 6, Macquarie’s Laurent Vasilescu and Dan Isaacson pondered the impact of commodity prices on Tiffany:

The Biggest Loser: Cincinnati Financial Tumbled 6.7%

Cincinnati Financial (CINF) tumbled to the bottom of the S&P 500 today after the insurer warned of larger catastrophe losses and lower reserve releases.

Cincinnati Financial dropped 6.7% to $69.91 today, while the S&P 500 declined 0.2% to 2,270.44.

Sandler O’Neil’s Paul Newsome and team explain why Cincinnati Financial got hammered today:

Tesla Motors: That’s Fast!

I you invest in Tesla Motors (TSLA) you know the power of an Elon Musk tweet. And Musk was at it again today, taking to Twitter to tout an upcoming boost to its Model S, one that will make it go even faster. Here’s what Musk tweeted:

Fiat Chrysler: And Then There Were Two…

Yesterday, Volkswagen announced that it had reached a deal with U.S. Justice Department to pay $4.3 billion to settle charges that it had used software to cheat emission tests. Today, it’s Fiat Chrysler Automobiles’ (FCAU) turn to be in the spotlight after the EPA accused it of gaming emissions standards.

The Wall Street Journal’s Chester Dawson and Mike Spector report on Fiat Chrysler’s alleged transgressions:

How General Motors Could Hit $50

General Motors (GM) has long been a Barron’s favorite, with last week’s bullish Take from Johanna Bennett only the latest example. And while that hasn’t always paid dividends, it certainly has recently. We’re not the only ones musing about General Motors upside, however. Yesterday, Macquarie looked at its outperformance relative to Ford Motor (F). And in a note released today, Barclays analyst Brian Johnson and team, who rate the stock Equal Weight with a $41 price target, mused about the possibility that General Motors could hit $50:

Why Stock Earnings are Irrelevant…This Time

Earnings season is beginning–even if Alcoa (AA) has abdicated its position as the official starting gun by moving its earnings call to later in the month–and investors will be watching closely to see what companies have to say. Unfortunately, the earnings themselves might not be all that relevant–something I noted in my Trader column last week–as investors will be more focused on commentary about the future than what happened in the past. Morgan Stanley’s Adam Parker and team explain:

Suddenly, Everyone Loves Xerox

Xerox (XRX) has left me puzzled. Last week, it completed its split into two companies, and its shares have been on a tear ever since. What’s more, analysts can’t stop themselves from releasing bullish notes, and even upgrading the stock.

Consider: Since Xerox complete the separation on Jan. 3, the stock has been upgraded by Credit Suisse, JPMorgan, Goldman Sachs, and now Morgan Stanley’s Jerry Liu and team have assumed coverage of Xerox with an Overweight rating, up from the previous Market Weight. They explain why:

Delta Air Lines: When Good News Isn’t Good Enough

Delta Air Lines (DAL) reported Street beating sales and in-line earnings this morning–but that wasn’t good enough for fickle investors.

Delta reported a profit of 82 cents a share, meeting forecasts for 82 cents, on sales of $9.5 billion, beating forecasts for $9.4 billion. And Delta didn’t stop there. It said its PRASM, which measures how much the company makes per available seat mile, could turn positive during the first quarter of 2017. The one downside appears to be rising costs, both for jet fuel and labor, which could cut into margins. Shares of Delta Air Lines have dropped 1.6% to $50.63 at 10:33 a.m. this morning.

Still, Cowen’s Helane Becker and team don’t seem worried: