- Morning Briefing w/ KevinD
- Posts
- Thursday May 9 @ 9:00am
“Are you long because you like it? Or. Do you like it because you’re long?”
The Markets Overnight
🌏 Asia: Mixed, China strong
🌍 Europe: Up
🌎 US Index Futures: Up slightly
🛢 Crude Oil: Down a bit
💵 Dollar: Down slightly
🧐 Yields: Up a bit
🔮 Crypto: Up a bit
🌏 Major Global Catalysts
Bank of England hods rates steady but hints at cuts this summer. (link)
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💵 Economic Reports and Events Today
Consensus forecasts shown
8:30am Unemployment Claims 212K expected, 231K reported. The number of individuals who filed for unemployment insurance for the first time during the past week. (link)
1:01pm 30-y Bond Auction Highest yield on a 30-year bond the government sold at auction, and the bid-to-cover ratio of the auction. (link)
2:00pm FOMC Member Daly participates in a fireside chat at George Mason University, in Virginia. (link)
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
Pre-Market Tomorrow:
🔮 Selected Analyst Ratings Changes
SHOP Shopify Piper Sandler Upgrades to Neutral Maintains 63.00
EVGO EVgo Cantor Fitzgerald Upgrades to Overweight Targets 4.00
FOXA Fox B of A Securities Upgrades to Buy Raises Target to 40.00
LYV Live Nation Entertainment Redburn Atlantic Upgrades to Buy Raises Target to 115.00
📉 Stocks In Play
HUBS HubSpot Up 8% on Google acquisition rumors. (link)
NIO: NIO 2% Up on announcement their new budget brand will launch on May 15. (link)
ARM: ARM Holdings -7% Down on a strong earnings beat with guidance that failed to live up to very high expectations. (link)
HOOD: Robinhood Markets 7% Up as earnings beat expectations with a boost from crypto trading. (link)
RBLX: Roblox -28% Down on declining engagement and a cut to EPS guidance. (link)
APP: AppLovin 15% Up as revenues increase 48%. (link)
ABNB: Airbnb -8% Down on soft guidance. (link)
Other Notable Earnings Movers: TTD +2%, BYND -15%, AMC -4%, CSIQ -3%, PZZA -4%, WBD -2%, PLNT -5%
💬 Commentary
Stocks rallied strongly at the open yesterday after a large gap down but spent most of the day chopping sideways, with the senior indices finishing near unchanged on the day and the Russell 2000 small caps index losing 0.5%. Utilities strongly outperformed all other sectors, up 1%, followed by financials and technology. All other sectors closed lower as the VIX, yields, and the dollar rose.
Jobs are in focus this morning as the market rallied slightly on higher-than-expected unemployment claims. Small caps are the biggest beneficiary, breaking well above yesterday’s range. Earnings are also in focus, with the overall reaction taking a negative slant again as forward guidance continues to underwhelm. The market likely continues to chop around as it seeks a positive catalyst to drive prices higher. That catalyst could come with next week’s CPI inflation report.
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