ECONOMIC SILUET: Watch these tech giants, resilient industrial stocks and a top energy name in trading tomorrow

Rabu, 07 Desember 2022

Watch these tech giants, resilient industrial stocks and a top energy name in trading tomorrow

WED, DEC 07, 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

Four tech giants win a contract with the Pentagon

On Thursday, we'll be watching Amazon, Alphabet, Microsoft and Oracle after the Pentagon gave each a cloud-computing contract through 2028. Those contracts could mean as much as $9 billion per company.
In 2019, Microsoft won the whole deal. When the others said the process was unfair, the Pentagon eventually changed the strategy.
It's seen as an especially big deal for Oracle.
All four are having a rough week so far: Microsoft is down 4.2% in three days, while Oracle lost 5.5%. Alphabet fell 5.5% through Wednesday, and Amazon is off by about 6%.

Mortgage rates inch downward, housing stocks rise

CNBC's real estate reporter Diana Olick will report on this one Thursday.
Toll Brothers up 7.75% Wednesday, but still 34.5% off the 52-week high.
PulteGroup up 2.8% on Wednesday, but still 23.2% from the 52-week high.
NVR up 2.7% on Wednesday, but still 21% from the 52-week high.
Lennar up 3.6% on Wednesday, but still 24.3% off the 52-week high.
D.R. Horton up 2.8% on Wednesday, but 22% from the 52-week high.

These industrial stocks are holding up

CNBC's Seema Mody interviews Cummins CEO Jennifer Rumsey in the 10 a.m. hour ET on Thursday.
The stock is down nearly 3% in a week, but it sits just 4% from the 52-week high set two weeks ago.
The Industrial Select Sector SPDR Fund (XLI) is down about 3% in three days and about 8% off the 52-week high.
In the last three months, Cummins is near the top of the industrials, up about 13%. Caterpillar and Deere lead the way in that time frame, up 26.6% and 20.4%.
United Rentals, PACCAR, Johnson Controls and GE are all notably high, rising 15% or more in three months.

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CNBC's Julia Boorstin will report on the pros, cons and estimates Thursday.
The stock is down 7.3% in three days and is 42.5% from the January high.
The stock is at about $92. Shares closed at $97.58 the first day of trading after Bob Iger made his comeback as CEO.

The rout in Salesforce shares continues

CEO Marc Benioff addresses Wall Street during his New York City tour on Thursday.
The stock dropped 2% Wednesday. It's 52% from the 52-week high – one year ago.
Shares are also down nearly 10% in three days.

China ETFs up over the past month

The volatile KraneShares CSI China Internet ETF (KWEB) dropped 2.3%. Wednesday, but it's up 31% in a month on word that the economy would reopen.
The iShares China Large-Cap ETF (FXI) which is a basket of large-cap Chinese stocks fell 2% on Wednesday. It's up 17.6% in a month.
The iShares MSCI China ETF (MCHI) dropped 1.6% Wednesday. It's up 17% in a month.

Cannabis names falter on shattered hopes

Big drops for pot stocks on Wednesday after hopes were dashed that pro cannabis legislation would show up before the end of the year.
Canopy Growth down 10.25% Wednesday and 71% from the 52-week high.
Tilray down 8.6% Wednesday and 62.6% off the 52-week high.
GrowGeneration fell 8.5% Wednesday, and it is 62% off the 52-week high.
The Global X Cannabis ETF (POTX) dropped nearly 9% Wednesday, and it is 68% off the 52-week high.

Oil prices are down for the year, but not energy stocks

Brent and West Texas Intermediate crude are now negative in 2022.
Brent is down 0.5% in 2022, and WTI is down 3.5% in 2022.
The Energy Select Sector SPDR Fund (XLE) is up 53% in 2022, leading all other sectors by far. In fact, it's the only positive sector ETF of the big 11 in the S&P.
Occidental is the best performer in 2022, up 120%. Hess is up 82% this year. Marathon Petroleum is up 70%, and Exxon Mobil is up 69.4% year to date.

Travel and airline stocks on 'Fast Money'

Steve Grasso of Grasso Global says they may be a buy now as they're beaten down amid fears travel will dry up.
His argument: They always come back.
Expedia and TripAdvisor dropped 6% each Wednesday. Expedia is 58% from its February high, and TripAdvisor is 41.6% from its high – also notched in February.
Delta, Southwest and United all fell 4% Wednesday, and American Airlines lost 5.4%.
They all hit 52-week highs in April. Since then, Delta is down 25.8%, Southwest lost 24.5%, American Airlines slumped 36.75%, and United is off 17% from that April high.
Hawaiian and Alaska Airlines both down 4% Wednesday. Alaska is 28% from the April high, and Hawaiian Airlines is 40% from the high.