The Market In 5 Minutes

IN THE NEWS

BENZINGA

Federal Home Loan Mortgage Corp FMCC and Federal National Mortgage Assctn Fnni Me FNMA shares were each down more than 22 percent on Tuesday after an appeals court upheld a ruling that hedge funds may not sue to challenge the legality of two government-sponsored enterprises (GSEs) net worth sweeps. Together, Fannie Mae and Freddie Mac reported $9.8 billion in Q4 income, all of which will be turned over to the U.S. Treasury as part of the terms of the net worth sweep: Link

The holiday shopping season was disappointing for many retailers, and it showed in the mixed earnings report released by Macy's Inc M: Link

Bristol-Myers Squibb Co BMY shares spiked 4.5 percent Tuesday on news that Carl Icahn bought a stake in the company: Link

Prison stocks have been rallying since the Nov. 8 presidential election, and a rumor out last weekend may have just added strength to the recent rally: Link

THE WALL STREET JOURNAL

In January, a month after Yahoo Inc. YHOO disclosed a second massive data breach, Verizon Communications Inc.’s VZ top executives huddled at the company’s headquarters and weighed their options: Link

White House press secretary Sean Spicer on Tuesday contradicted a Justice Department court filing on President Donald Trump’s plans to rescind his executive order on visas and refugees, saying the original ban wouldn’t be revoked as another one is issued: Link

The Federal Reserve left interest rates unchanged at its Jan. 31-Feb. 1 meeting, issuing a statement that skirted any signals about the timing of future rate increases, the central bank’s plans for its portfolio of assets or its take on the Trump administration’s fiscal policies. Minutes from that meeting, set for release at 2 p.m. EST Wednesday, could offer details of any internal discussions of these issues and others. Here’s what to watch: Link

REUTERS

A trade association representing General Motors Co GM, Toyota Motor Corp TM, Volkswagen AG and nine other automakers on Tuesday asked new Environmental Protection Agency chief Scott Pruitt to withdraw an Obama administration decision to lock in vehicle emission rules through 2025: Link

Oil giant Saudi Aramco has asked JPMorgan Chase & Co JPM and Morgan Stanley MS to assist with its upcoming mammoth IPO and could call on another bank with access to Chinese investors, a source with direct knowledge of the matter said: Link

BLOOMBERG

Equity analysts are sounding alarms on financial shares: Link

In San Francisco, an Indian software engineer on a work permit canceled plans to bid on a $900,000 home. In Washington, a Brazilian nonprofit executive passed on a fixer-upper near her office. And, in Mesa, Arizona, a 24-year-old son of undocumented Mexican immigrants won the trust of a bank — a green light for a mortgage -- but now fears deportation: Link

The foreign ministers of Mexico and Canada presented a unified front ahead of potential trade talks with Donald Trump’s administration, stressing the North American Free Trade Agreement has benefited all three countries: Link

NY POST

Snap Inc., weeks away from it much-anticipated IPO, is close to inking its first major advertising deal with an unnamed ad holding company, The Post has learned: Link

ECONOMIC DATA

• Data on existing home sales for January will be released at 10:00 a.m. ET.
• Federal Reserve Gov. Jerome Powell is set to speak at the Forecaster's Club of New York at 1:00 p.m. ET.
• The Treasury will auction 5-year notes at 1:00 p.m. ET.
• The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.

ANALYST RATINGS

• Bank of America upgrades Wal-Mart Stores WMT from Neutral to Buy
• JP Morgan upgrades Parker Hannifin PH from Neutral to Overweight
• Morgan Stanley upgrades VF VFC from Underweight to Equal-Weight
• Cowen & Co. downgrades TripAdvisor TRIP from Market Perform to Underperform
• Bank of America downgrades United Parcel Service UPS from Buy to Neutral
• Atlantic Equities downgrades Ralph Lauren RL from Neutral to Underweight

NOTABLE OPTIONS RECAP

• MBLY MobilEye Mar 43.0 Puts: 2093 @ ASK $1.00: 2688 traded vs 4214 OI: Earnings tmrrw Before Open $46.05 Ref
• FTR Frontier Comm Mar 3.5 Calls Sweep: 617 @ ASK $0.05: 817 traded vs 4538 OI: Earnings 2/27 After Close $3.32 Ref
• STLD Steel Dynamics Mar $36 Call; 2204 @Bid @$2.20
• SFM Sprouts Farmers Market Mar 17.5 Puts Sweep: 688 @ ASK $0.35: 1348 traded vs 912 OI: Earnings 2/23 Before Open $19.37 Ref
• JBLU JetBlue Sep17 17.0 Calls Sweep: 558 @ ASK $4.10: 558 traded vs 17 OI: Earnings 4/25 Before Open (est) $20.13 Ref
• LC LC Mar 6.0 Calls Sweep: 500 @ ASK $0.20: 1471 traded vs 2475 OI: Earnings 5/9 After Close (est) $5.73 Ref
• RAD Rite Aid Fri $4 Calls Sweep (18) at the ask: 3717 @ 2.181 vs 511 OI; Ref=$5.935
• GIS Gen Mills Mar 62.5 Calls Sweep: 750 @ ASK $0.70: 3490 traded vs 1334 OI: Earnings 3/22 Before Open (est) $60.79 Ref
• PBI Pitney Bowes Oct $15 Call; 4400 @ $0.75
• CPRT CPRT Mar 60.0 Puts Sweep: 1481 @ ASK $1.55: 1483 traded vs 10 OI: Earnings today After Close $60.27 Ref
• UNVR Univar Mar 30.0 Calls: 1842 @ ASK $1.10: 2706 traded vs 133 OI: Earnings tmrrw Before Open $29.68 Ref
• BSX Boston Scientific May $28 Call; 2000 @Bid @$0.40
• UPS UPS Feb 24th 107 Calls: 854 @ ASK $1.02: 949 traded vs 2473 OI: Earnings 4/27 Before Open (est) $107.54 Ref
• SMLP Summit Midstream Mar @22.5 Put: 2000 @ BID $0.35
• P Pandora Mar 10th 13.0 Puts Sweep: 1430 @ ASK $0.39: 4725 traded vs 313 OI: Earnings 4/27 After Close (est) $13.47 Ref
• VRX Valeant Feb 24th 18.0 Puts Sweep: 2639 @ Above Ask! $1.75: 4000 traded vs 7815 OI: Earnings 2/28 Before Open $16.34 Ref
• SPWR Sunpower Mar 10th 7.5 Calls Sweep: 825 @ ASK $0.93: 1733 traded vs 18 OI: Earnings 5/4 After Close (est) $8.09 Ref

This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. Apply for daily AM access by clicking here or email minutes@benzinga.com.