ECONOMIC SILUET: Watch these ‘buy now, pay later’ names, CrowdStrike and this retail outperformer in tomorrow’s trading

Selasa, 07 Maret 2023

Watch these ‘buy now, pay later’ names, CrowdStrike and this retail outperformer in tomorrow’s trading

TUE, MAR 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

CrowdStrike's after-hours jump

CrowdStrike is moving higher in the extended session after earnings and revenue topped estimates. The cybersecurity firm also reported strong first-quarter and FY EPS and revenue guidance. The stock was already an outperformer in cybersecurity, up 9% in the past month, as of today's close. ETFs like First Trust Cybersecurity ETF (CIBR) and ETFMG Prime Cyber Security Fund ETF (HACK) are both flat in that time.

BlackBerry's warning

On the other hand, BlackBerry warned today that its fourth-quarter results would come in below expectations, specifically because of weakness in its cybersecurity unit, sending the stock to its worst session since February 2021. Reflecting a trend noted by some other players in the space, the company says macroeconomic challenges caused some large deals to be pushed into later quarters.

Banks tumble on Tuesday

Banks were among the hardest hit names as Federal Reserve Chair Jerome Powell signaled further rate hikes. It's still early in the week, but the SPDR S&P Bank ETF (KBE) is tracking for its third-straight weekly decline and its worst since mid-December. Several notable regionals are 10% or less away from hitting 52-week lows, including PNC Financial, First Horizon, M&T Bank, First Republic and Truist Financial.

'Buy now, pay later' stocks slide

Affirm Holdings fell more than 8% today. There were already growing concerns about users' ability to pay, especially in the wake of a Consumer Financial Protection Bureau report finding that "buy now, pay later" users typically have "higher levels of financial distress" and lower credit scores compared to people who don't use the services. Block and PayPal, which also have BNPL offerings, fell 3% and 2%, respectively. CNBC's Kristina Partsinevelos will have more on that story Thursday.

Selected airline shares pop

While JetBlue and Spirit Airlines moved in opposite directions as the DOJ seeks to block their merger, analyst activity helped the other major U.S. airlines outperform on a rough day for the broader markets. Delta was upgraded to outperform by Evercore ISI, which also raised its price target. United Airlines hit its highest level since June 2021 – the first of this group to reach a fresh 52-week high since last April. American Airlines and Alaska Air both gained 1%.

A strong day for Dick's Sporting Goods

Dick's Sporting Goods' best day since August 2021 gave a boost to several other retail and apparel names. Williams-Sonoma, Petco and Abercrombie & Fitch were all up 2% or more today, though they remain firmly in negative territory over the past month.