ECONOMIC SILUET: Watch this semiconductor star, a strong casino stock and bank shares in trading tomorrow

Senin, 05 Desember 2022

Watch this semiconductor star, a strong casino stock and bank shares in trading tomorrow

MON, DEC 05, 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 gem among semiconductor names

Universal Display Corp. was a bright spot on the VanEck Semiconductor ETF (SMH) after inking a long-term deal to supply OLED materials to Samsung. The stock is up around 18% in the past month, though it remains firmly in negative territory for 2022, alongside many of its peers. On Monday, most SMH constituents finished lower.

Better days could be ahead for bank stocks

The bank conversation continues. Even as Treasury yields moved higher, financials came under pressure in Monday's session. Every constituent of the SPDR S&P Bank ETF (KBE) finished in negative territory, with some of the largest banks suffering the biggest declines: JPMorgan fell nearly 3%, Bank of America was off by 4%, and Wells Fargo sank about 5%. Still, as Jason Gewirtz, vice president of news for CNBC, noted last week, financials remain higher through the past month, and the sector is around 15% off its October low. Wells Fargo Securities analyst Mike Mayo said on "Closing Bell" that he has high conviction bank stocks will outperform in the coming months, believing those names would be resilient to even a "soft recession."

Salesforce tumbles to a low last seen in 2020

Salesforce was the biggest drag on the Dow today, falling to its lowest level since April 2020. Several of Slack's top executives will be leaving the company, including CEO Stewart Butterfield. This follows Wednesday's announcement that Salesforce co-CEO Bret Taylor will leave the company, though Butterfield told employees the departures were unrelated. Credit Suisse and Citigroup both cut their price targets on Salesforce, as well. Amid these headlines, the stock has fallen about 13% in a week.

Melco shines as casino stocks outperform

Casino stocks, especially those with exposure to Macao, outperformed today as China began easing some Covid-related curbs and Truist upgraded MGM. In the S&P, both MGM and Wynn finished in positive territory, while Las Vegas Sands wasn't far off. Each of those names are up between 11% and 21% in the past month. Melco Resorts gained 5% today and is up more than 45% in a month.

Pot names fly high

Despite the broader selloff, several pot stocks extended recent momentum today. Tilray, Canopy Growth and Cronos Group finished in positive territory. Over the past week, those stocks are up 28%, 27% and 16%, respectively, amid renewed hopes that the federal government will relax marijuana laws.

A real estate sector ETF with a notable laggard

While most other real estate sector constituents have traded higher over the past four weeks, Boston Properties has underperformed. On a year-to-date basis, it's the second-worst performer on the SPDR Real Estate Sector ETF (XLRE), behind Vornado. Today, BXP hit its lowest level since 2010. According to FactSet, the stock is trading roughly 17% below its average analyst price target, and 50% of analysts have a buy or overweight rating on the stock, 46% have a hold rating, and 4% have a sell rating.