ECONOMIC SILUET: Watch these this discounted insurance stock, EVgo and these tech winners in tomorrow’s trading

THU, MAR 30, 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

Health-care stocks suffer

Several health-care names are among the worst performers in the S&P 500 this week. Humana and Cigna are both down more than 2% as they face price-fixing accusations from the Ohio attorney general. Cigna has had a rough start to the year and is heading for its worst quarterly performance since Q4 2008. Moderna and Intuitive Surgical are also firmly in negative territory for the week.

UnitedHealth at a discount?

Additionally, UnitedHealth Group is the biggest drag on the Dow so far this week and this year, and it's currently trading around 15% away from its all-time high. Eighty-five percent of the analysts tracked by FactSet have buy ratings on the stock, and it's trading at a rather steep discount to its average price target.

Stars of the industrials sector

The industrials sector was a relative laggard today, but there were some bright spots in the group. Waste Management shares jumped after being initiated at outperform by TD Cowen, bringing it to less than 10% from a fresh all-time high. Airlines like Delta and Southwest gained more than 1% in a week that has seen them rebound from recent weakness. Delta, for instance, is on pace to snap its longest weekly losing streak since September. Boeing also jumped as the company indicated it would increase production levels for its 737 Max model.

Cintas creeps closer to a fresh high

Cintas has had a modest start to the year, up around 3.5% so far. But it gained steam yesterday on the heels of a strong earnings report, putting it on track for its best week since July 2022. It finished today less than 1% away from an all-time high, which it last notched in December. Since reporting its results, analysts at Baird, Morgan Stanley, and Bank of America have raised their price targets. Baird also reiterated an outperform rating, while the others maintained their neutral-equivalent ratings.

EVgo soars on quarterly results

Electric vehicle charging firm EVgo gained over 20% today after a much narrower-than-expected loss and revenue beat. The company expects its full-year revenue to more-than double over last year, though the outlook range is wide due to uncertainty around when its charging stations will be installed at Flying J and Pilot fueling centers. The stock has been an outperformer so far this year, up 57%, though it's still around 50% off its recent high.

Ethan Kraft | CNBC Stocks & Markets Editor
@ethan_kraft

The insurance stocks and exposure to banks

Contessa Brewer did some good reporting today on the connection, risks and fear of risks.
In her reporting, she found that the credit default swaps on many of the insurance companies have spiked — dramatically, in some cases.
The price of credit default swaps for MetLife: up 87% in a month.
The price of credit default swaps for Prudential: up 82% in a month.
The price of credit default swaps for Hartford Financial: up 70% in a month.
The price of credit default swaps for Chubb: up 20% in a month.
As for the stocks: MetLife is down 20% in a month.
Prudential is down 18.25% in a month.
Hartford Financial is down 12% in a month.
Chubb is down more than 8% in a month.

Energy in the USA

Crude is up 6.3% in a week, and Brent is up 4.5% in that time.
Gasoline futures, however, are up 1.8% in a week. They're up 9% in a month.
On the stock side:
Hess is up nearly 10% in a week.
Marathon Oil is up 7.77% in a week.
EOG is up 8.3% in a week.
Phillips 66 is up 6.9% in a week.
ExxonMobil is up nearly 6% in a week.
Chevron is up 5% in a week.
Nat Gas is down 23% in a month and down 2% in a week.
Toby Rice, CEO of EQT, was on "Mad Money" around 6:20 p.m. ET tonight, arguing that a warmer winter led to lower prices and a not-so-great stock price. He also made the case for American energy security. The stock is up close to 6% in a week and down 7.5% in 2023. He believes there's a tremendous opportunity for natural gas in the months ahead due to Russia's invasion of Ukraine and the disruption of energy.

The lack of pipelines

EQT's Rice made the case on "Mad Money," saying the U.S. was in need of a lot more.
Magellan Midstream is up 8.2% in 2023. The dividend is 7.7%.
Enterprise Products is up 6.7% in 2023. The dividend is 7.6%.
Energy Transfer is up roughly 5% in 2023. The dividend is 9.8%.
Alerian MLP ETF is up 1% in 2023. The dividend is 7.77%.
Kinder Morgan is down 4.3% in 2023. The dividend is 6.4% right now.
Tortoise Energy is down 7.77% in 2023. The dividend is 9.7% right now.
Williams Companies is down 10.6% in 2023. The dividend is 6.1% right now.

President Trump's social media company

Digital World Acquisition Corp's stock is up 11% after hours, on news the former president was indicted.
While this note is never an endorsement to buy, sell or hold, be warned that this stock is volatile and the market cap is on the small side.

Beauty stocks

Melissa Repko will report on the run Friday on CNBC and CNBC.com.
Ulta hit an all-time high today. The stock is up 14% in 2023.
Coty is up 39% in 2023, and just off a high.
e.l.f. Beauty is 3% from a 52-week high.
Estee Lauder is flat in 2023, but it's up 14% in six months.

Tech stocks as the quarter ends

Heading into the last day of the quarter, the S&P Tech index is up 20%, leading the S&P sectors.
Nvidia, AMD and Salesforce are the leaders. Nvidia is up 87% in Q1, and AMD is up 51%. Salesforce is up 48% in Q1.
At the bottom of the list, EPAM is down 10% in the quarter, and Gen Digital is down 21%. Enphase is down 22.5% in Q1. IBM is off by 8%, and Akamai is down about 9% in Q1.