- Morning Briefing w/ KevinD
- Posts
- Wednesday April 24 @ 9:00
Wednesday April 24 @ 9:00
Stocks mixed in the pre-market with large caps leading and small caps lagging
KevinD
April 24, 2024
“No wise pilot, no matter how great his talent and experience, fails to use his checklist”
📈 The Markets Overnight
🌏 Asia: Up
🌍 Europe: Up slightly
🌎 US Index Futures: Mixed
🛢 Crude Oil: Down slightly
💵 Dollar: Up
🧐 Yields: Up strongly
🔮 Crypto: Mixed
🌏 Major Global Catalysts
The U.S. Senate approves $95B in military aid for Ukraine, Israel, and Taiwan. (link)
💵 Economic Reports and Events Today
Consensus forecasts shown
8:30am Core Durable Goods Orders m/m 0.3% expected, 0.2% reported. Change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items. (link)
8:30am Durable Goods Orders m/m 2.5% expected, 2.6% reported. Change in the total value of new purchase orders placed with manufacturers for durable goods. (link)
10:30am Crude Oil Inventories 1.6M Change in the number of barrels of crude oil held in inventory by commercial firms during the past week. (link)
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
META Meta Platforms EPS 4.32 Rev 36.15B (link)
LRCX Lam Research EPS 7.30 Rev 3.72B (link)
F Ford Motor EPS 0.42 Rev 40.10B (link)
VALE Vale EPS 0.46 Rev 8.62B (link)
URI United Rentals EPS 8.33 Rev 3.44B (link)
IBM IBM EPS 1.60 Rev 14.54B (link)
CMG Chipotle Mexican Grill EPS 11.65 Rev 2.67B (link)
Pre-Market Tomorrow:
MRK Merck & Co EPS 1.88 Rev 15.19B (link)
CARR Carrier Global EPS 0.51 Rev 6.27B (link)
HTZ Hertz Global Holdings EPS -0.44 Rev 2.03B (link)
VLO Valero Energy EPS 3.24 Rev 33.08B (link)
TECK Teck Resources EPS 0.830 Rev 3.06B (link)
AZN AstraZeneca EPS 1.22 Rev 11.83B (link)
LUV Southwest Airlines EPS -0.34 Rev 6.42B (link)
NOC Northrop Grumman EPS 5.79 Rev 9.77B (link)
CMCSA Comcast EPS 0.99 Rev 29.81B (link)
RCL Royal Caribbean EPS 1.33 Rev 3.69B (link)
CAT Caterpillar EPS 5.14 Rev 16.21B (link)
BMY Bristol-Myers Squibb EPS -4.42 Rev 11.45B (link)
🔮 Selected Analyst Ratings Changes
TSLA Tesla B of A Securities Upgrades to Buy Targets 220.00
ABNB Airbnb Mizuho Upgrades to Buy Raises to 200.00
ENPH Enphase Energy Guggenheim Downgrades to Sell Targets 92.00
GL Globe Life to Keefe, Bruyette & Woods Upgrades to Outperform Lowers to 110.00
PLCE Children's Place B. Riley Securities Upgrades to Neutral Lowers to 7.00
SIRI Sirius XM Holdings Pivotal Research Upgrades to Buy Lowers to 4.90
📉 Stocks In Play
TSLA Tesla Up 11% after missing on top and bottom lines with a 9% decline in revenue but the company promised to accelerate the release of new models including a more affordable model. (link)
RILY B. Riley Financial Up 50% after an independent investigation cleared the company of misconduct in the buyout of Franchise Group. (link)
SIRI Sirius XM Holdings Up 2% on an analyst upgrade. (link)
VRT Vertiv Hldgs Up 17% on an earnings beat and resurgence in the AI trade. See also ARM, SOUN, SMCI (link)
ENPH Enphase Energy Down 6%, well of earlier lows on their earnings miss and guidance well below expectations. (link)
Other Notable Earnings Movers: V +3%, TXN +7%, T +4%, BIIB +6%, BA +4%, MAT +4%
💬 Commentary
Monday's rally gained momentum yesterday, with a risk-on sentiment as IWM's 1.67% gain outperformed the QQQ's 1.5% gain and SPY's solid 1.2% performance. The rally continued in after-hours trading as earnings reports from Tesla, Visa, and Texas Instruments drove the large-cap indices higher. The communications and technology sectors were the big winners yesterday, both up 1.5%, with materials being the only sector to finish lower.
The Nasdaq is higher by nearly 1% this morning as tech outperforms with a spate of solid earnings reports and a rotation back into AI and semiconductor plays. This week's leader, IWM, has handed off the baton, currently down 0.3% on weakness in the energy sector and, more importantly, rising yields. It will be difficult to sustain this week's rally if yields continue to rise at this pace. Cash-rich large caps and the Mag 7 should be fine, but this morning's pullback in small caps is a warning sign we must not ignore. Combined with positioning ahead of Friday's PCE report, we expect to see profit-taking dominate the tape later today or tomorrow.
⛵ 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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