Stocks @ Night: Costco's Outperformance And Big Energy All-stars - Free Websites, Share News And Posts Publicly

WED, SEP 27, 2023

Welcome to the all-new “Stocks @ Night” newsletter, formerly known as “Evening Playbook by Pro.” Here, you’ll continue to find essential evening market insights and investment wisdom for a first look at tomorrow and a last look at today.

Peloton’s pop in extended trading

Peloton briefly rose as much as 30% in the extended session on a new strategic partnership with Lululemon. It’s a much-needed boost for Peloton’s stock, which is down over 40% this year and hit an all-time low on Monday. The news is having little to no impact on Lululemon shares, even as the company announces it will stop selling its Studio Mirror product. Lululemon is up 18% in 2023 and finished the day around 7% off its recent high. Its much larger rival, Nike, is set to report earnings after the closing bell on Thursday. The sportswear giant is down 24% year to date and tracking for its worst month since May.

CarMax earnings on Thursday

CarMax is set to report earnings before the bell on Thursday. It got a boost on Monday when Wedbush upgraded it to outperform, citing the potential for ongoing strength in demand and pricing as a result of a prolonged autoworkers’ strike. The stock is up 30% this year but still around 9% off its July high.

Energy stands out

Energy is the lone sector in positive territory this week as oil prices keep marching higher. WTI and Brent crude are both heading for the fourth-straight monthly gain and best quarter since Q1 of 2022. Big gainers in energy today included Marathon Oil, Devon Energy and Hess, while Exxon hit an all-time high. Natural gas players like EQT and Kinder Morgan are among the month’s laggards as natural gas prices remain pretty much flat.

Consumer staples slump

Another hefty batch of lows in consumer staples today, including Hershey, J.M. Smucker and Brown-Forman. Costco gained almost 2% after Tuesday’s earnings report, extending its year-to-date outperformance (it’s up over 23%). The next-best retailer in staples is Walmart, up 14%. Kroger is flat on the year. Dollar Tree, Dollar General, Target and Walgreens are among the worst in the sector – all off by 25% or more.

Lower guidance for Weyerhaeuser

Weyerhaeuser lowered its guidance after the bell this evening. It’s been a quiet year for the lumber giant, but it’s tracking for a quarterly decline. Analysts are mostly bullish, with 64% rating it buy, according to FactSet.