ECONOMIC SILUET: Watch these airlines, consumer-focused stocks and this winning bank name in trading tomorrow

TUE, DEC 13, 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

A notably ugly day for JetBlue

Airlines were the worst performers in a group of hard-hit travel names after JetBlue warned of softer December demand. It was the worst day for that stock since June. United fell nearly 7%, and it's now off by 10% in a week. American, Delta and Southwest were also firmly in negative territory. All these names are lower on the year and more than 20% off their recent highs. Elsewhere in travel, cruise lines Norwegian, Royal Caribbean and Carnival finished lower, as did booking sites like Expedia and Booking Holdings. Airbnb fell 2% and is off by about 15% in a month.

Mall-focused stocks tumble

Dick's Sporting Goods had a rocky day. The stock hit a 52-week high early in the session, before falling 6% for its worst day in a month. Other retail and apparel players also slipped, including many mall-focused names like Victoria's Secret, Macy's, Nordstrom and Foot Locker. Amid a wave of retail earnings, these names are largely mixed over the past month. Foot Locker, for instance, is up 10% in that time, while Nordstrom is down almost 20%.

One winner emerges from bank stocks' rout

Many banks fell again Tuesday, after KBW downgraded the group. M&T Bank, Regions Financial and PNC were among the biggest laggards in the financials sector. The firm reiterated its preference toward mega-cap banks, and JPMorgan, Bank of America and Wells Fargo finished near the flatline. U.S. Bancorp was the lone upgrade in Tuesday's note, and it finished the day in positive territory. The SPDR S&P Bank ETF (KBE) is roughly 8% from its July low, and the SPDR S&P Regional Banking ETF (KRE) is 6% from its July low.

Chip stocks march higher

In general, chipmakers have a long way to go before notching fresh highs, but they have largely extended recent gains. Nvidia and ASML rose 3% Tuesday, and both stocks are up over 30% in three months. Applied Materials, Microchip Technology and KLA Corp. are over 20% in that time, and they also finished higher Tuesday. The iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH) are both firmly in negative territory this year and roughly 30% off their January highs.

Ethan Kraft | CNBC Breaking News and Markets Producer
@ethan_kraft

Spotting an opportunity in energy

In the last 24 hours, famed oil trader Mark Fisher called on investors to buy oil, natural gas, heating oil and gasoline futures.
On Mad Money's "Off the Charts" segment Tuesday night, Jim Cramer reported on widely followed chartist Carley Garner's call that oil is going higher. Cramer suggested this may be a good time to buy energy stocks.
Diamondback is up 26% year to date, but it has lost 17% in a month.
Marathon Oil has gained 68% in 2022, but shares have fallen nearly 16% in a month.
ConocoPhillips added 57% this year, but it's off 15% in a month.
Chevron is up 47% year to date, but it's lost 7% in a month.
ExxonMobil is up 75% year to date, but it's down about 6% in a month.

Consumer-focused stocks roar to fresh highs

Lots of 52-week highs Tuesday from stocks that depend on the great American consumer. On the list (thanks to CNBC's Chris Hayes):
Ross Stores, which is up 57% in six months and up 22% in one month
Conagra, which gained 19.5% in six months
Pepsi, which added 15% in six months
Three key 52-week highs in the health care/biotech areas as well Tuesday: Boston Scientific is up 11% in one month. Cintas is up 29% in six months, and Gilead is up 50% in that same period.

Mark Fields speaks on Tesla waitlist times

On "Fast Money" Tuesday night, the former Ford CEO and auto industry expert said it used to take nine months — you had to be on the waitlist for nine months— before being able to get a Tesla.
Now you can get one in a few days.
That's not necessarily bearish, while demand might not be as robust as it was, he still sees growth. It's also a product of better production efficiency, perhaps.
On the stock side, Tesla dropped 4% Tuesday, and it's down 10% in two days. Shares have fallen 17% in December, and they are off about 45% in three months.

Moderna's big break

The S&P Health Care sector was up 0.27% today, near the bottom of the pack sector-wise.
But on a day when Moderna and Merck announced a breakthrough in the fight against melanoma, the NYSE Arca Biotechnology Index (BTK) was up more than 2%, led by Moderna, which gained almost 20%.
The SPDR S&P Biotech ETF (XBI) and the iShares Biotechnology ETF (IBB) were both up more than 1.5%.
The Loncar Cancer Immunotherapy ETF (CNCR) was up about 1.1% Tuesday.

Binance temporarily paused withdrawals of stablecoin USDC

Crypto stocks took another hit, partially on that news and other things you may have seen this week, including the arrest of Sam Bankman-Fried and the denial of his bail request in Bahamas.
Silvergate Capital which specializes in the industry fell nearly 12% Tuesday.
Coinbase dropped 9% on Tuesday.
Marathon Digital fell 8% Tuesday
Cleanspark dropped 2.6% Tuesday.
Bitcoin, however, is up 4% in the last 24 hours and closing back in on $18,000.
All of these stocks are down at least 80% from their 52-week highs.

Airlines catching a tailwind

Delta CEO Ed Bastian is on "Squawk Box" Wednesday.
This is after United Airlines announced it was buying 100 Boeing 787 Dreamliners with the option to buy more.
United is up about 9% in three months.
Delta is up 5% in three months.
Boeing is up 27% in three months and 61% in six months. Boeing is leading the Dow over the last six months and so far in December. Year to date, it is down 7%.
Ethan has more on the airlines and travel stocks above.

Yields before the Federal Reserve's rate hike announcement at 2 p.m. Wednesday

The 10-year Treasury is yielding 3.5%.
The 2-year Treasury is paying 4.2%.
The U.S. 3 month Treasury is paying 4.3%.
The Principal Investment Grade Corporate ETF (IG) is paying 6.18%.
The iShares iBoxx Investment Grade Corporate Bond ETF (LQD) is paying 2.87%.
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR Bloomberg High Yield Bond ETF (JNK) high-yield bond ETFs are paying 5% and 5.7%.
The iShares JPMorgan USD Emerging Markets Bond ETF (EMB) is paying 4.5%.