- Morning Briefing w/ KevinD
- Posts
- Thursday May 23 @ 9:00am
“We are prone to overestimate how much we understand about the world and to underestimate the role of chance in events.”
📈 The Markets Overnight
🌏 Asia: Up strongly except China down
🌍 Europe: Up
🌎 US Index Futures: Up strongly
🛢 Crude Oil: Up
🪙 Gold: Down
🧐 Yields: Down a bit
💵 Dollar: Down a bit
🔮 Crypto: Up
🌏 Major Global Catalysts
Global markets surge higher on NVIDIA’s blowout earnings report (link)
💵 Economic Reports and Events Today
Consensus forecasts shown
All Day G7 Meetings in Italy begin and run through Friday. (link)
8:30am Unemployment Claims 220K expected, 215K reported. The number of individuals who filed for unemployment insurance for the first time during the past week. (link)
9:45am Flash Manufacturing PMI 50.0 Level of a diffusion index based on a survey of about 800 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. (link)
9:45am Flash Services PMI 51.2 Level of a diffusion index based on a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. (link)
10:00am New Home Sales 677K Annualized number of new single-family homes that were sold during the previous month. (link)
3:00pm FOMC Member Bostic participate in a virtual moderated discussion at an event hosted by Stanford Graduate School of Business. (link)
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
Pre-Market Tomorrow:
🔮 Selected Analyst Ratings Changes
NVDA NVIDIA Goldman Sachs Maintains Buy Raises Target to $1200.00
CB Chubb B of A Securities Upgrades to Neutral Raises Target to $266.00
GDRX GoodRx Holdings RBC Capital Upgrades to Outperform Raises Target to $10.00
GNRC Generac Hldgs JP Morgan Downgrades to Neutral Targets $149.00
NTES NetEase Morgan Stanley Downgrades to Equal-Weight Lowers Target to $100.00
TTWO Take-Two Interactive B of A Securities Upgrades to Buy Raises Target to $185.00
📉 Stocks In Play
NVDA NVIDIA: Up 7% on a blowout earnings report, strong guidance, and a 10 for 1 stock split. (link)
DD Dupont: Up 5% after the company announced it would split into three public companies and current CFO will take over as CEO in June. (link)
LYV Live Nation: Down 6% on plans by the Justice Department and some states to sue the company, seeking to break it up alleging it used its ticketing monopoly to suppress competition. (link)
DELL Dell Technologies: Up 7% on a partnership with Ericsson on customized network cloud infrastructure solutions. (link)
NWSA News Corp: Up 4% on a $259M licensing deal with OpenAI. (link)
SNOW Snowflake: Up 5% on a 34% quarterly revenue pop and raised guidance. (link)
Other Notable Earnings Movers: ELF +4%, NTES -4%, BILI -4%, BJ -0.5%
💬 Commentary
Markets paused again yesterday, with the senior indices down slightly, just under all-time highs, and small caps underperforming again, down 0.8%. Most sectors were red, with metals and energy being especially weak. However, technology, healthcare, communications, and industrials managed to eke out small gains. It wasn’t a bad result for a choppy day that saw the market digesting an FOMC meeting minutes report which indicated that many members were calling for a longer wait to cut rates. NVIDIA reported a strong beat with robust guidance, and a 10:1 stock split after hours, rallying 6% and breaking through the psychologically important $1,000 level.
Stocks are strongly higher in the pre-market led by the semiconductor and technology sectors on the strength of NVIDIA’s earnings. Slightly lower than expected unemployment claims failed to cool the rally. Today’s surge to new all-time highs is expected to hold, with dip buyers likely to be very active if given an opportunity provided the PMI data released at 9:45 is favorable.
⛵ When you’re ready…
Some tools/resources that I personally find valuable.
A powerful yet simple fundamental analysis tool: Stock Unlock
AI-powered stock research tools used by institutional investors: Finchat
The trading journal to help improve your trading performance: Tradervue
Analyze trade ideas with me, KevinD, in live calls: My trading group
#1 charting software for serious traders: TradingView
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Disclaimer: Everything expressed in this newsletter is a personal opinion provided for educational value only. This is not financial advice. These are not instructions, suggestions, or directions as to how to handle your money. Please, always do your own due diligence.
Th