ECONOMIC SILUET: Watch these Chinese stocks, BJ’s Wholesale Club and these banking ETFs in tomorrow’s trading

Kamis, 09 Maret 2023

Watch these Chinese stocks, BJ’s Wholesale Club and these banking ETFs in tomorrow’s trading

THU, MAR 09, 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

Chinese stocks suffer, dragging the Nasdaq 100

JD.com was the worst performer on the Nasdaq 100 today, down over 11%, despite an earnings beat. Executives noted on the conference call that recovery for Chinese consumers would "take some time." There are also ongoing worries over how its price war with PDD Holdings will cut into margins. PDD, for its part, was the second-worst performer on the Nasdaq 100, falling nearly 8%. The move sent other Chinese tech names tumbling, including KE Holdings, Baidu, Alibaba and Netease. The KraneShares CSI China Internet ETF (KWEB) fell below its 200-day moving average for the first time since November, and it's tracking for its worst week since October.

Materials sector's rocky week

It's been a rough week for the materials sector, with stocks across all industries tracking for weekly declines. The best performer in the sector, Martin Marietta, is down more than 3% week to date. Freeport-McMoRan is tracking for its worst week since early September. Albemarle, Celanese, International Flavors & Fragrances and Mosaic are all down more than 8% this week.

A jump for BJ's Wholesale Club shares

BJ's Wholesale Club outperformed today after an earnings and revenue beat. Despite citing "significant uncertainty" about the macroenvironment, the company's outlook also topped expectations, and it touted strong renewal rates among members. The stock finished the day around 5% away from an all-time high. So far this year, BJ's is up 15%, outperforming its much larger rival, Costco. Costco is over 20% away from its high and up 5% in 2023.

A weekly tumble for EV names

EV-makers are poised for sharp declines this week. Tesla, which recently hosted its investor day, is tracking for its biggest weekly drop since December. It's worth noting, however, that this is only Tesla's third weekly decline of 2023, and the stock is still up 40% since the start of the year. Rivian sank yesterday on a green bond offering, and the slide continued today. That stock is heading for its third-straight weekly decline. Lucid Group didn't have much news of its own, but it's been following its peers lower and is down 10% this week.

Ethan Kraft | CNBC Stocks & Markets Editor
@ethan_kraft

A horrible day for financials

The SPDR S&P Bank ETF (KBE) dropped 7.3% today. It is down 11% in four days.
The SPDR S&P Regional Banking ETF (KRE) dropped 8.1% today. It is down 12.2% in four days.
The S&P Financials were the worst performing sector of the day, down 4.1%. The sector is now down nearly 7% in four days.
Comerica, KeyCorp and U.S. Bancorp were among some of the hardest hit today. KeyCorp and U.S. Bancorp were down more than 7% Thursday, while Comerica shed 8%. They're all down more than 10% in four days.
Goldman Sachs is down 4.2% in four days.
Citigroup is down 7% in four days.
Morgan Stanley is down 6.2% in four days.
Bank of America is down 10.6% in four days.

The Russell 2000 vs. the world

Financials account for 16.4% of the Russell 2000 index. That's about tied with the weighting of industrials.
The Russell, which investors sometimes favor in times when overseas markets seem rocky fell 2.8% today. It is down 5.3% in four days. The iShares Russell 2000 ETF (IWM) is up 4% in 2023.
The iShares MSCI Emerging Markets ETF (EEM) was down 2.2% today and is down 3.8% in four days. EEM is just above breakeven in 2023.
The Vanguard FTSE All-World ex-U.S. Index Fund (VEU) was down 1.2% today, and it's off by 2.7% in four days. The VEU is up 3.7% in 2023.

Two other areas of negativity: housing and 'buy now, pay later'

CNBC's Diana Olick will report on the increasing trouble for the housing market, and Kristina Partsinevelos will report on issues for the "buy now, pay later" industry.
The SPDR S&P Homebuilders ETF (XHB) is down 2.6% in four days. The ETF is still within 8% of a 52-week high.
The worst-performing stocks of the week in the ETF are Floor & Décor, down 6%; Mohawk Industries, down 5.9%; and Owens Corning, down 5.3%.
D.R. Horton, NVR and Lennar are all up for the week. D.R. Horton is up 2.3%, while NVR and Lennar are each up 1%.
Affirm and Square are both up about 17% this year. Both fell hard today, a nearly 7% drop for Affirm and a 5.3% decline for Square.

Allbirds and the new line of tech clothing retail companies

Shoe company Allbirds, which started a trend, fell 7.8% today. It fell as much as 20% after hours after a less-than-stellar quarterly report. When accounting for the after-hours action, the stock is down more than 30% in four days.
Farfetch is down 11% in four days.
ThredUp is up 47% in four days.
Rent the Runway is down more than 3% in four days, and Stitch Fix is off by more than 1% in that period.
All of these stocks are down more than 55% from their highs 11 months ago.