Tuesday June 4 @ 9:00am

Stocks lower ahead of important jobs data after the open

Author

KevinD
June 04, 2024

"Software is eating the world, but AI is going to eat software."

~ Jensen Huang

📈 The Markets Overnight

🌏 Asia: Mixed
🌍 Europe: Down
🌎 US Index Futures: Down
🛢 Crude Oil: Down
🪙 Gold: Down
🧐 Yields: Down
💵 Dollar: Up slightly
🔮 Crypto: Up slightly

🌏 Major Global Catalysts

  • Indian stocks plunge as the ruling party led by Narendra Modi appears likely to lose it’s majority as the vote count continues in the world’s largest democracy. (link)

💵 Economic Reports and Events Today

Consensus forecasts shown

  • 10:00am JOLTS Job Openings 8.37M Number of job openings during the reported month, excluding the farming industry. (link)

  • 10:00am Factory Orders m/m 0.7% Change in the total value of new purchase orders placed with manufacturers. (link)

📰 Selected Earnings Releases

Consensus Estimates shown
After Hours Today:

  • CRWD CrowdStrike Holdings EPS 0.90 Rev 904.66M (link)

  • SPWH Sportsman's Warehouse EPS -0.35 Rev 249.48M (link)

  • SFIX Stitch Fix EPS -0.25 Rev 306.12M (link)

  • HPE Hewlett Packard EPS 0.39 Rev 6.82B (link)

Pre-Market Tomorrow:

  • OLLI Ollie's Bargain Outlet EPS 0.65 Rev 505.79M (link)

  • LE Lands' End EPS -0.26 Rev 269.82M (link)

  • DLTR Dollar Tree EPS 1.43 Rev 7.64B (link)

  • REVG REV Group EPS 0.26 Rev 601.46M (link)

  • CPB Campbell Soup EPS 0.70 Rev 2.35B (link)

🔮 Selected Analyst Ratings Changes

  • HEI Heico Morgan Stanley Upgrades to Equal-Weight Raises Target to $225.00

  • SUN Sunoco Mizuho Upgrades to Buy Lowers Target to $59.00

  • UPST Upstart Hldgs Redburn Atlantic Upgrades to Neutral Raises Target to $25.50

📉 Stocks In Play

  • GTLB Gitlab: Down 2% after reporting a revenue beat and raised outlook but a slightly higher quarterly loss. (link)

  • HUBS Hubspot: Up 3% on rumors the company has hired advisors in anticipation of a takeover deal. (link)

  • INTC Intel: Up 1% after revealing AI data center chips. (link)

  • GME GameStop: Down 6% after yesterday's 21% gain continues to unwind. (link)

  • INDA iShares India ETF: Down 7% on early Indian election results. (link)

  • BBWI Bath & Body Works: Down 6% as profit beat expectations but sales slipped. (link)

  • Other Notable Earnings Movers: BARK -14%, DBI -14%

💬 Commentary

Stocks opened strongly yesterday, led by IWM small caps, but sellers quickly took control and sold aggressively through the lunch hour following the Manufacturing PMI report, which indicated a slowing economy. The swing in IWM was especially dramatic, losing 2.5% from the pre-market high to the intraday low. Much like Friday, the turnaround off the low was sudden and followed through into the close. SPY and QQQ retraced most of the pullback, finishing green but still closed below the open however, small caps lagged and closed 0.5% lower. Most sectors were down with energy very weak, down 2.6%. Healthcare, communications, and technology were the only sectors showing gains on the day.

Stocks are expected to open lower this morning with small caps lagging ahead of the 10:00 AM Jolts Job Openings data. A higher-than-expected number should improve optimism around a September rate cut but will also stoke fears highlighted yesterday that the economy may be slowing too much. We should expect another volatile day and week as traders digest these important job reports.

- KevinD

⛵ When you’re ready…

Some tools/resources that I personally find valuable.

A powerful yet simple fundamental analysis tool: Stock Unlock

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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.

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