ECONOMIC SILUET: Watch these gold and silver plays, Lululemon and a big biotech winner in tomorrow’s trading

Selasa, 28 Maret 2023

Watch these gold and silver plays, Lululemon and a big biotech winner in tomorrow’s trading

TUE, MAR 28, 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

Lululemon jumps on results

Lululemon gained more than 12% in the extended session after reporting earnings and revenue that topped analyst estimates. The stock was already an outperformer among athleisure names this month, but the after-hours gains put it on track for its best monthly gain since October 2022. Meanwhile, Nike and Under Armour continue tracking for monthly declines.

A communications services standout

Paramount Global outperformed on a downbeat day for the communications services sector. Analysts at Bank of America upgraded the stock to buy, saying the company has a number of attractive assets that could draw interest from outside buyers, if ever offered for sale. The stock is on the verge of going positive for March, which would extend a strong start to the year – up 27% so far. It's the third-best gainer in communications services, behind Meta (up 67% YTD) and Warner Bros. Discovery (up 53% YTD).

How to play gold and silver's run

Gold and silver stocks continue to outperform as the dollar index heads for its worst start to the year since Q1 of 2018. Names like First Majestic Silver, Gold Fields, Iamgold and Kinross were up over 3% today. Gold Fields, the largest of those names by market cap, is up 47% in March, which would be its best monthly gain since April 2020. Wheaton Precious Metals, another relatively large name, is less than 10% from a 52-week high and up over 50% in six months.

Carnival's strong quarter

Carnival rebounded from yesterday's losses after a range of analysts raised their price targets and reiterated buy-equivalent ratings. Wells Fargo upgraded the stock to equal weight from underweight. While Carnival is still down 12% this month, it's on pace for its best quarterly performance since Q1 of 2021. Royal Caribbean is also down 12% this month, and Norwegian is off by 16%.

Ethan Kraft | CNBC Stocks & Markets Editor
@ethan_kraft

Several consumer stocks hit highs today

Darden Restaurants hit a November 2021 high. The stock is up 8% in March.
Mondelez hit an all-time high. The stock is up nearly 7% in March.
Hershey hit an all-time high. The stock is up 6% in March.
Monster Beverage hit an all-time high. The stock is up 1.4% in March.

Viking Therapeutics

This biotech stock shot up nearly 70% today.
It is up more than 3% after hours.
The big gain comes as the company announced early trials of a new weight-loss drug were successful.
Options volume was more than ten times the normal throughout much of the day.
The big biotech exchange-traded funds were flat today. The iShares Biotechnology ETF (IBB) was up 0.02%, and the NYSE Arca Biotechnology Index (BTK) inched up 0.01%. The SPDR S&P Biotech ETF (XBI) slipped 0.6% today.
Altimmune, another biotech company with a weight-loss drug, dropped 8% today.
Novo Nordisk and Eli Lilly are bigger players in that market. Both stocks were up slightly today. Novo Nordisk is up about 10% in March, while Eli Lilly is up 8.5%.
CNBC's Events team has a lot more on the health-care and pharmaceutical sectors tomorrow, for more information go to CNBCEvents.com.

Hedge funds dumping financials

There is a good story tonight from CNBC.com's Yun Li on a report by Goldman Sachs about hedge funds selling stocks in the sector.
Names that Goldman Sachs considers "lending sensitive stocks" include:
Carlyle Group, down 11.4% in March
KKR, down 10.6% in March
Blue Owl Capital, down 10% in March
Boston Properties, down 22% in March

Regional banks

When President Joe Biden was asked today if the banking crisis has ended, he said it's "not over yet."
But a CFRA analyst called the big drops in regionals a buying opportunity, naming six stocks.
On the list:
East West Bancorp, down 26% in March
Citizens Financial Group, down 26.4% in March
Synovus Financial, down 27.6% in March
Regions Financial, down 21.5% in March
Webster Financial, down 26% in March
Fifth Third Bancorp, down 27.4% in March