ECONOMIC SILUET: Watch this high-flying travel stock, DraftKings and these shorted names in tomorrow’s trading

Selasa, 18 April 2023

Watch this high-flying travel stock, DraftKings and these shorted names in tomorrow’s trading

TUE, APR 18, 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

Intuitive Surgical shares leap

Intuitive Surgical jumped in the extended session as the company's adjusted earnings per share and revenue topped analysts' estimates. The after-hours move puts it roughly 5% from a 52-week high, though it has traded along the flatline this year. The company saw growth in installations and use of its robotic surgery system, though it noted ongoing softness in China due to Covid-19.

Booking Holdings hits a fresh high

Booking Holdings hit an all-time high today, extending its outperformance of rivals. TripAdvisor and Airbnb are still over 30% from their 52-week highs (and even further from all-time records), while Expedia is down 50% from its recent high and heading for its third-straight monthly decline.

A strong day for DraftKings

DraftKings gained 7% today, its best session in two months, after Morgan Stanley reiterated its overweight rating and raised its price target. That stock is still trading around 71% off its 2021 all-time high, but it's a big outperformer in 2023: up over 80% year to date. According to FactSet, 59% of analysts rate it a buy.

Plug Power tumbles

Fuel cell stock Plug Power hit its lowest level since August 2020 after analysts at KeyBanc downgraded it to sector weight. The stock has already fallen 27% this year, but analysts say a number of headwinds could prevent a rebound in the near-term. Some of those obstacles include management changes, delays in new facilities and the need for more capital. Plug Power is currently tracking for its 7th monthly decline in 8 months and its worst since October.

First Solar shakes off a downgrade

First Solar shook off a downgrade from the same note (KeyBanc cut it to sector weight) to finish slightly higher on the day. That downgrade comes in part, the analysts say, because of the stock's big run up this year. It still finished the day up 46% year to date and hit a 52-week high yesterday. Fellow S&P 500 constituents Enphase and SolarEdge haven't performed quite as well this year, down 14% and up about 12%, respectively. However, both are some of the best performers in the S&P over the past month, with Enphase gaining 24% and SolarEdge up 18% in that time.

Ethan Kraft | CNBC Stocks & Markets Editor
@ethan_kraft

Tech surge beyond FAANG as several big names hit highs

Salesforce is now at a 52-week high, up 50% in 2023.
Motorola Solutions is now at an all-time high, up 10% in a month.
Nvidia is at a 13-month high, up 90% in 2023.
Oracle is at a 17-month high, up 44% in six months.

Homebuilder highs

NVR, parent company of Ryan Homes is now at a 16-month high and up 26% in 2023.
PulteGroup is nearing a two-year high, up 37.5% year to date.
These are good numbers from CNBC's Chris Hayes.

Short interest in biotech names

Five of the top ten stocks with the highest short interest in the last month are biotech names.
On the list:
Allogene Therapeutics has short interest near 54%. It is down 12.5% in a month, and it's 72% from the 52-week high.
Novavax has short interest near 45%. Shares are up 56% in a month, but they are 88% off the 52-week high.
Sana Biotechnology has short interest near 37%. The stock is up 58.5% in a month, but 42% from the 52-week high.
Verve Therapeutics has short interest near 35%. The stock is down 17% in 2023, and 63% off the 52-week high.
Arcutis Biotherapeutics has short interest also near 35%. Shares are up 25% in a month, and they are 50% off from the 52-week high.
Thanks to CNBC's Nick Wells for the list.

The Great American Consumer

The big banks often have good insight into the consumer.
CNBC's Harriet Taylor put together a good list over the last few days.
Today, Bank of America was mostly positive, seeing strength in the consumer. JPMorgan saw continued resilience, and it was the same for Wells Fargo. However, Citigroup's CEO saw "notable softening in consumer spending growth."
In the last week, the S&P Consumer Discretionary sector is up 1.7%, and it is up 5% in a month.
Travel industry stocks in the sector are faring the best in the past week, led by Las Vegas Sands, Marriott and Booking Holdings. They're all up 5% to 6%. Booking Holdings hit a high today, and Las Vegas Sands is close to a high. Marriott is 11% away.
Ethan Kraft has more on Booking Holdings above.
On the downside, the weakest consumer stocks in the last week include Best Buy, Etsy and Ross Stores.