ECONOMIC SILUET: Watch these social media names, C3.ai and these energy stocks in tomorrow’s trading

Senin, 06 Februari 2023

Watch these social media names, C3.ai and these energy stocks in tomorrow’s trading

MON, FEB 06, 2023

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

Chegg shares tank

Chegg is down 20% after hours as its first-quarter and full-year guidance missed estimates, though its fourth-quarter results came in ahead of expectations. As of Monday's close, the stock had already fallen almost 19% in three months. And including tonight's move, it's down roughly 85% from its pandemic-era all-time high. We'll hear directly from Chegg CEO Dan Rosensweig tomorrow on CNBC's "Closing Bell."

PINS and needles

Pinterest is under pressure in the extended session, following revenues and revenue growth guidance that came in below expectations. While the stock has lagged rivals Meta and Snap to start 2023, it's the only one in positive territory over the past twelve months (as of today's close) and the only name of the three to have notched a fresh 52-week high so far this year.

A notable SNAP-back

On that note: with another rally today, Snap's dive following its earnings report feels like a distant memory. But it was only last Wednesday that the stock fell 10% for its worst day since October. Nonetheless, last week solidified its longest weekly win streak since going public, and it's up more than 30% since the start of the year. That being said, Snap is still way off its recent high – down 70%.

Investors flock to AI

C3.ai outperformed again today, finishing up around 6.5%. The stock is up 70% in a week and over 150% in the past month. The move comes amid an AI-race among tech giants, with Microsoft expected to announce developments related to ChatGPT tomorrow, and Alphabet unveiling plans for its ChatGPT-rival earlier today. Smaller AI stocks BigBear.AI and SoundHound AI, each with market caps under $800 million, have seen huge run-ups this year: BBAI is up over 800% in 2023, SOUN is up 128%.

Pool stocks under pressure

Outside of tech, pool-related stocks were under pressure after a downbeat note on the group from Stifel Nicolaus. Fueled by disappointment in Pentair's pool category results, the firm is cautious on the group for this year. S&P 500 constituent Pool Corp. fell almost 3% after the firm downgraded the stock to hold. Hayward Holdings was also cut to hold and fell more than 3%. The firm remained steady on its outlook and hold rating for Leslie's, but that stock was punished the most, falling 8%.

Energy names slump

Oil and gas stocks underperformed today, even as WTI crude ticked higher. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is now off by 15% in three months. Names like Comstock, Tellurian, SM Energy, and Gulfport Energy are among the biggest laggards, down over 30% in that time. But bigger names like EQT Corporation and Texas Pacific Land are also off by more than 25%. The largest names of the group have fared a bit better, with Exxon Mobil the best performer of the group, basically flat in three months. Chevron is down 7.5% in that period.