ECONOMIC SILUET: Watch these unexpected A.I. plays, Disney and this cybersecurity name in tomorrow’s trading

Selasa, 07 Februari 2023

Watch these unexpected A.I. plays, Disney and this cybersecurity name in tomorrow’s trading

TUE, FEB 07, 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

VF Corp. ticks higher on earnings

VF Corp. ticked slightly higher in the extended session after topping earnings and revenue estimates. The apparel company is also slashing its dividend by 41% and announcing several other cost-cutting initiatives. The stock has been a laggard in consumer discretionary recently, off over 3% through the past month. And in six months, it's the worst performer in discretionary: down 37%, as of today's close.

A cybersecurity stock surges

Fortinet jumped as much as 15% after hours, following better-than-expected earnings and upbeat revenue guidance. The stock has traded roughly in line with other cybersecurity and tech stocks in recent weeks. If tonight's move holds to tomorrow's opening bell, it will only be around 12% away from a fresh 52-week high. For comparison, the Global X Cybersecurity ETF (BUG), iShares Cybersecurity & Tech ETF (IHAK), and First Trust Cybersecurity ETF (CIBR) are all 18% or more away from their own highs.

Enphase shines in fourth quarter

Enphase is also firmly in positive territory after handily beating fourth-quarter earnings and revenue estimates. The company also says plans to add U.S. manufacturing capacity in the second quarter, thanks in part to strong demand and incentives related to the Inflation Reduction Act. Enphase has trailed other solar players recently, down 15% over the past three months. SolarEdge is up more than 50% in that time, and First Solar is up nearly 13%.

Cloudy guidance for Lumen

A disappointing outlook is hitting Lumen Technologies in the extended session, despite beating on earnings and revenue. As of today's close, the stock is off by 8% in a month, the worst performance on the Communication Services Select Sector SPDR ETF (XLC).

Ethan Kraft | CNBC Breaking News and Markets Producer
@ethan_kraft

Many ways to play the A.I. theme

Microsoft and Alphabet were both up today by more than 4% because of their investments and moves toward artificial intelligence.
But there are a lot of other stocks that stand to benefit, and investors were buying those as well today.
Ambarella was up 5.3% today. Shares are up 17% in 2023.
Nvidia was up 5% today. It's up 51% in 2023.
Illumina was up 3.4% today. Shares are up 6% in 2023.
Teradyne was up 3% today. It's up 26% in 2023.
The Global X Robo Global Robotics & Automation ETF (ROBO) was up 1.4% today. It's up 17% in 2023.
The iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) was up 2.2% today. It's gained 23% in 2023.
Alteryx is a software company working to make advanced analytics more accessible. The stock was up nearly 7% today, and it is up 18% in 2023. The market cap is about $4 billion.
C3.ai fell about 11% today, and SoundHound dropped 10.7%. Both have more than doubled so far in 2023. Jim Cramer highlighted both drops in the A block tonight on "Mad Money." C3.ai's CEO was on "Closing Bell" Monday, saying he was focused on the future and not the stock price.

Disney earnings on deck

Disney reports Wednesday after the bell.
The stock is up 14% since Bob Iger made his comeback in late November.
In the last 12 months, however, the stock is down 22%.

Gambling apps in the run-up to the Super Bowl

With just three trading days to go before the Super Bowl, if there were a competition between sports gambling apps DraftKings would be winning.
Since the National Football Conference and American Football Conference championship games:
DraftKings is up 16.5%.
Caesars Entertainment is up 4.7%.
MGM Resorts is up 2.4%.
Entain, which trades in Europe and is part owner of the MGM app, is up 2%.
Sportradar, which provides data, is down 1%.

The energy complex

Granted, things could change tomorrow, but West Texas Intermediate is up 5.5% in two days.
Natural Gas is up 7% in two days.
Heating Oil is up 5% in two days.
RBOB Gasoline futures are up nearly 6% in two days.
The S&P energy sector reacted today, up 3%.
Valero led the way up 5% but it's down 4% in the last five sessions.
Marathon Petroleum was up 5% today. Shares are down 5% in five sessions.
Occidental Petroleum was up 5% today. It's off 0.3% in the past five sessions.
At the bottom of the sector today: Kinder Morgan was up 0.6% and has been flat in the last five sessions. Williams Companies is up 1.3% today, but down 0.4% in five sessions. ONEOK is up 1.3% today, and it's up 0.9% in five sessions.