ECONOMIC SILUET: Watch cybersecurity stocks, this market-beating EV play and energy shares in trading tomorrow

Selasa, 29 November 2022

Watch cybersecurity stocks, this market-beating EV play and energy shares in trading tomorrow

TUE, NOV 29, 2022

The goal of this newsletter is to get you ahead of the next day of investing and trading. It's your first look at tomorrow and last look at today powered by the team of people who direct CNBC TV's stock market coverage.

Tomorrow's Top CNBC Stories Tonight

Cybersecurity stock plunging

Crowdstrike fell 18% in the extended session after reporting a beat on EPS and revenue, though its Q4 revenue guidance was light. Prior to this move, the stock had already underperformed other cybersecurity names. ETFs that track those stocks, including BUG, CIBR, and IHAK were off 9% or less this month, while Crowdstrike had fallen 14% as of today's close.

Biotech buyout?

Horizon Therapeutics confirmed after the bell that it is in "highly preliminary discussions" with pharmaceutical giants Amgen, Janssen Global Services (owned by Johnson & Johnson), and Sanofi over a potential takeover. Amgen, Johnson & Johnson, and Sanofi were mostly unchanged in the extended session, though Horizon soared nearly 40% after a news-related halt. So far in 2022, Horizon has been an underperformer, off by more than 25% as of today's close.

Contrarian China play working

Chinese tech stocks outperformed today. Despite headwinds throughout the month, including recent protests, these stocks are poised for big monthly gains. Giants like Alibaba and JD.com are on pace for their best gains in over 7 years. Pinduoduo is trading at its highest level in a year. Smaller-cap names Tencent Music and Bilibili are up 83% and 73% respectively… that would be the best month for both names since their U.S. debuts. Several of the ETFs that track Chinese stocks are poised for their largest monthly gains since inception, including the KWEB (2013), FXI (2004), and MCHI (2011). Nonetheless, all three are still 30% or more off recent highs, so they have a ways to go before fresh records.

Holiday season winner so far

Etsy has also had a really strong November, gaining 30% so far this month. The stock declined for 7-straight months beginning in December 2021, so it remains far off its record high, but this month's turnaround has it trading at its highest level since March. Sentiment on Wall Street is mixed, with 48% of the analysts tracked by FactSet rating Etsy a "buy," and another 48% rating it "hold." It currently trades at a slight premium to its average analyst price target.

Under-the-radar EV winner

Polestar remains an outlier among electric vehicle-makers. The stock gained roughly 3% today, while rivals like Tesla, Lucid, and Rivian finished lower. In November, PSNY is up 60%, while Lucid has fallen 32%, Tesla has fallen 21%, and Rivian has fallen 18%. Polestar is owned by Volvo, a subsidiary of China-based Geely. On that note, Chinese EV-makers also outperformed this month, with Li Auto up 36%, XPeng up 11%, and NIO up 9%.

Ethan Kraft | CNBC Breaking News and Markets Producer
@ethan_kraft

Big on PRO TALKS late afternoon…Online Now: Tom Lee

Tom Lee believes energy stocks could double in the next year
The XLE is up 63.5% in 2022 so far
Occidental Petroleum is the leader up 138% in 2022
EQT Corporation is up 95% in 2022
Marathon Petroleum is up 93% in 2022
On the bottom of the list: ONEOK up 10.5% in 2022, Kinder Morgan is up 19% in 2022 and Baker Hughes is also up 19% in 2022
However Kinder Morgan, despite being an energy laggard, has a 5.9% dividend and ONEOK pays 5.7%
Separately Tom Lee also is calling for a ten percent jump for the great markets between now and the end of the year… keep in mind of course he has been very bullish, and less than right throughout much of the year

Oil vs. Oil Stocks

We'll be digging into the widening gap between the two on CNBC TV Wednesday
In the last two months the SPDR Energy ETF (XLE) is up 25%
WTI however is down 3% and Brent is down 5% in the same time period

Cybersecurity stocks will be in focus tomorrow

Beyond Crowdstrike… Ethan mentioned above, here's how the other cybersecurity stocks are faring as that one falls
Sentinel One is down 6% after hours
Cloudflare is down 3% after hours
Zscaler is down 5.8% after hours
Fortinet is down 3% after hours
Palo Alto Networks is down 3% after hours

Railroad stocks in focus as Congress looks to stop strike

As the drama and uncertainty plays out from Washington to the rails, the stocks keep chugging along
Norfolk Southern is up 11% in November
CSX is up 10.7% in November
Union Pacific is up 8% in November
Canadian Pacific is up 7.7% in November
Canadian National Railway is up 5.7% in November

Investors May Prefer…

Preferred stocks have been a longtime strategy of Warren Buffett
While it might not be so easy to get in for many retail investors the PFF (iShares Preferred ETF) is up 3% in November and is paying a 5.3% dividend right now, which of course beats the bond complex, including the HYG high yield bond ETF, paying 5% right now
Citi Global Wealth's Kristen Bitterly made the case for preferred stock on Closing Bell Monday
We will continue to try and point out those high yield opportunities in this note and of course moving forward on CNBC TV