ECONOMIC SILUET: Watch these jumping homebuilders, Alphabet and this Chinese tech name in tomorrow’s trading

Selasa, 16 Mei 2023

TUE, MAY 16, 2023

Tomorrow's Top CNBC Stories Tonight

Western Alliance rises on deposit update

Western Alliance is higher in the extended session after the troubled regional bank announced that it has seen $2 billion in deposit growth from the start of the quarter to May 12. That's a slight uptick from its most recent update, which was $1.8 billion as of May 9. Including the after-hours move, Western Alliance is up 25% in the past week, though it remains firmly in negative territory for 2023.

Waiting for fresh highs from two tech giants

We're on 52-week high watch for Alphabet and Apple, both of which are up over 30% since the start of the year. They finished the day less than 3% away from what would be their first highs since last August. Elsewhere in tech behemoths, Microsoft continues notching 52-week highs while Amazon finished the session down 23% from its August high. All four are outpacing the major averages this year.

E-commerce under pressure

It was a rough day in e-commerce, with the ProShares Online Retail ETF (ONLN) falling 2.8%. A variety of constituents were under pressure today, including Singaporean giant Sea Limited, which fell almost 18% after a big miss on earnings. Carvana was off by 8%, Etsy fell 5%, and eBay was off by 4.7%. Peloton sank 6% to extend a run that's seen the stock fall 27% in a month.

Worst day since May 2021 for Vodafone

British telecom giant Vodafone posted its worst day since May 2021 after laying out its full-year guidance. The company also announced a number of cost-cutting strategies, including cutting 11,000 jobs over three years, a turnaround plan for its Germany segment, and a strategic review of its Spain business.

Baidu shares jump on results

Baidu offered some positivity out of China today, beating earnings and revenue estimates. The stock gained over 3% today and is up 11% in a week. Baidu saw more companies spending on advertising, especially in travel and health care, as China continues reopening from the pandemic. Executives also promised to roll out its artificial intelligence chatbot when it receives Chinese government approval.

Metals

Copper is near the low of the year. Down 4% in 2023 after a jump in the first few months of the year.
Nickel hit a seven-month low. It is down 30% year to date and down 15% in a month.
Zinc is now at a low not seen since October 2020. It's off about 16% year to date and down 12% in a month.

Now to the miners

Timber

Home Depot said lower lumber prices hurt its bottom line.
Lumber is down 18% in a month.
The Invesco MSCI Global Timber ETF (CUT), which tracks global timber, is down 7% in six months. It's off 19% from the 52-week high hit 11 months ago.
The iShares Global Timber & Forestry ETF (WOOD) is off by 5.4% in six months.

The homebuilders

D.R. Horton is now trading at all-time highs. The stock is up 25% year to date.
PulteGroup is now trading at all-time highs. The stock is up 52% year to date.
Hovnanian Enterprises also hit a high today. It's up 105% in 2023.
The SPDR S&P Homebuilders ETF (XHB) is up 17% in 2023.
The bottom six stocks in the index are the following: Lowe's, which is flat in 2023; Williams-Sonoma, which is down nearly 3% this year; Johnson Controls, down 5% in 2023; Home Depot, down 10.6% in 2023; and Carlisle Companies, down 12.7% in 2023.

Not passing the smell test

CNBC's Chris Hayes points out that International Flavors and Fragrances has hit lows not seen since October 2013.
The stock is down 22% year to date and 40% off the 52-week high.
According to stock tracking data provided by FactSet, eight analysts have a buy rating, seven have a hold, and one has a sell. The Street has a mean target of $112.95. The stock is currently trading at $81.