ECONOMIC SILUET: Watch this exceptional LatAm play, C3.ai and these hot food stocks in tomorrow’s trading

Rabu, 29 Maret 2023

Watch this exceptional LatAm play, C3.ai and these hot food stocks in tomorrow’s trading

WED, MAR 29, 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

Real estate bounces, but many names face March losses

Real estate names rebounded a bit today after recent weakness. A range of names led today's charge, including the recently-battered Boston Properties, as well as Alexandria Real Estate Equities, Host Hotels and AvalonBay. Nonetheless, much of the sector remains under pressure in March. Some of its biggest constituents, like CBRE, Alexandria and Simon Property are down well over 12% in March.

Petco rises, but is on pace for a decline this month

Petco Health & Wellness extended its post-earnings run today, gaining over 5% for its best day since January. Today's move follows Bank of America reiterating its buy rating on the stock, though the analysts trimmed their price target to $14.50/share from $18. Week to date, the stock is up 15%, though Petco is still on pace for a double-digit monthly decline.

An update on social stocks

After rallying amid TikTok scrutiny, Snap has pulled back a bit this week. The social stock is down almost 7% in three days, heading for its worst week since mid-December. It's still hanging on to gains for March. Nearly 80% of the 40+ analysts that track the stock rate it as a hold, according to FactSet. Pinterest also finished the day lower but is on track for a monthly gain. On the other hand, dating apps like Grindr and much-larger Match Group are tracking for monthly declines. Bumble is on pace for its worst month since August.

An exceptional LatAm play

E-commerce giant MercadoLibre is in striking distance of a 52-week high as it continues enjoying a strong run. The Nasdaq 100 constituent is up almost 45% in 2023, and the stock is on track for its best quarterly gain since Q4 2020. The company primarily serves Latin America — especially Brazil, Argentina, and Mexico — so the comparison isn't perfect, but MercadoLibre has significantly outperformed smaller U.S.-based names like eBay (up 5% YTD) and Etsy (down 10% YTD).
The move does reflect some of Latin America's outperformance this year, with Argentina's S&P Merval up 23% and Mexico's S&P/BMV IPC up 11% year to date. The S&P 500 is up nearly 5%. The Brazilian Bovespa has lagged, down 7%. The iShares MSCI Mexico ETF (EWW) is up 20% this year.

Ethan Kraft | CNBC Stocks & Markets Editor
@ethan_kraft

A.I. stocks amid Elon Musk's warning that the technology could be dangerous

Worldwide Exchange's Frank Holland did some reporting on how the stocks and exchange-traded funds have done since the Federal Reserve's rate hike on March 22.
The Global X Robotics and Artificial Intelligence ETF (BOTZ) is up 2.5% in a week, 5.5% in March and 36% in six months.
The leaders over the week include C3.ai, up 14.2% in a week.
ExaWizards is up 9.7% in a week.
Nvidia is up 2% in a week, and it's gained 16% in March.
But many analysts say the buzz among investors may be wearing off.

GE and Intel are on the rise

GE is near a high and is up 11% in March.
Intel is 40% off the 52-week high. The stock had a big day: It was up 7.6% today after the company said new server chips will be ready sooner than expected. Shares are up 26.4% in March

Food stocks are on a run

General Mills is now up 7% in March.
Hershey is up 6% in March.
McCormick is up 9% in March.
Mondelez is up 8% in March.
All are what technical stock analysts would call overbought, as they all have an RSI (Relative Strength Index) above 70. An RSI is one of many metrics some traders might use to look at a stock, but it's by no means an indicator that something is going to move one way or the other imminently. Rather, it measures the recent price movement of a stock.

Natural gas

The commodity is back near a six-week low.
Since the beginning of March, it is down 27%.
In that same time period, Antero has fallen 14%, Equinor has slipped 8%, and Southwestern Energy has dropped 7%. EQT has lost 5.2%, and Coterra has shed 3.4%.

The auto sector

Despite a brighter first quarter than some expected, many of the auto stocks still haven't fared so well in March.
GM is down nearly 8% this month.
Tesla is down 5.7%.
Ford is flat.
Toyota is up 2.7%.
CNBC's Phil LeBeau has more tomorrow.
The used-car stocks were hit harder: Carvana and CarMax both down 16% and 14%, respectively.