Stocks @ Night: Oversold Sectors, A Hot Backoffice Play And Rising Bond Yields - Free Websites, Share News And Posts Publicly

TUE, SEP 26, 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.

A back-to-office play jumps in after-hours action

MillerKnoll jumping double digits in the extended session after an earnings and revenue beat. The furniture giant also raised its full-year EPS outlook above analyst estimates. Though the company cited macroeconomic pressures, especially in housing, it says it’s benefiting from an “increasing shift from North American companies towards return-to-office.” It echoes similar commentary from peer Steelcase last week, putting that stock on pace for its best quarterly gain since 2000. Including the after-hours move, MillerKnoll is heading for its best quarterly stock performance since 1980. Steelcase is tracking for its best quarter since 2000. HNI Corporation is another name to watch in that category, up around 17% quarter to date.

Electric vehicle stocks rise — with a notable exception

Fisker posted its best day since July on plans to ramp up production and a buy rating from Bank of America. But other EV-makers had strong days, too. Polestar gained 10% on no real news, while Rivian and Lucid gained 5% and 3.5%, respectively. In that group, Rivian is the only name in positive territory this year, though it’s still over 40% off its recent high. Tesla underperformed today on reports that it’s among the automakers the EU is probing over Chinese subsidies.

Ethan Kraft | CNBC Stocks & Markets Editor
@ethan_kraft

Oversold sectors?

Three S&P Sectors are at or near oversold levels based on their relative strength index, or RSI.
An RSI of below 30 generally indicates a stock or ETF is oversold (usually over a short-term period).
The Real Estate Select Sector SPDR Fund (XLRE) has an RSI of 27. It is down nearly 6% in a week and off 8.4% in September.
The Consumer Staples Select Sector SPDR Fund (XLP) has an RSI of 29. It is down 2.8% in a week and 4.6% in September.
The Industrial Select Sector SPDR Fund (XLI) has an RSI of 31. It is down 3.3% in a week and about 7% in September.

Also oversold?

Netflix has an RSI of 33. The stock is down 12.5% in September.
The WisdomTree Cloud Computing ETF (WCLD) has an RSI of 30.7. It is down 10% in September.
Nike has an RSI of 20. the stock is down 11% in September.
Paychex reports tomorrow morning before the bell. It has an RSI of 31 and is down nearly 8% in September.

Uranium

A pullback today across the board for uranium stocks, but most of the big names have hit 52-week highs in the last few sessions.
That includes the following:
Energy Fuels, which is up 21% in September but down 3.5% today
Uranium Royalty, which is up 22% in September but down about 3% today
Denison Mines, which is up 17% in September and down 4.6% today
The Global X Uranium ETF (URA), up 13% in September and down nearly 3% today
Sprott Uranium Miners ETF (URNM), up 22% in September and down 2% today
Centrus Energy, up 22% in September and down 3.5% today
Ur-Energy, up 20% in September but down 4.2% today
Uranium Energy, which is up 20% in September and off about 4.3% today
Cameco, up nearly 10% in September, yet down 2% today

The dollar

The dollar index which measures the greenback against a few other currencies is now at highs dating back to November 2022.
Many things react to significant moves in the dollar. A stronger dollar can mean consumers in the U.S. fare better when buying imported products.
U.S. companies that do a lot of exporting sometimes drop when the dollar gets stronger as their products appear more expensive.
Another area to consider in watching the dollar is small caps because many of the companies in the Russell 2000 are domestically focused. In the last two months, the dollar index is up 5% and the Russell 2000 is down 11%.

Bonds in the U.S.A and beyond

CNBC TV at the NYSE reported today that there was a lot of debate at the trading desks about the possibility of the 10-year Treasury yield reaching 5%. Right now, it’s at 4.55%.
The one-month Treasury bill is at 5.4%.
The two-month T-bill is 5.45%.
The three-month T-bill is 5.5%.
The six-month T-bill is 5.6%.
The one-year T-bill is at 5.47%.
The two-year note is at 5.13%.
The iShares JPMorgan USD Emerging Markets Bond ETF (EMB) tracks emerging market bonds. The ETF is down 3.4% in September and yields 5.12%.
The BondBloxx USD High Yield Bond Healthcare Sector ETF (XHYH) is down 3.4% in September also. It’s yielding 9.26%.
The Fidelity Corporate Bond ETF (FCOR) is down 2.7% in September, and it yields 3.78%.
The BondBloxx USD High Yield Bond Telecom, Media & Technology Sector ETF (XHYT) is down 2.15% in September. It’s yielding 7.2%.

Micron reports tomorrow

The stock is up nearly 4% since Micron reported three months ago.
By comparison, the popular VanEck Semiconductor ETF (SMH) is down 4.2% in the last three months.

Cannabis

Tomorrow, CNBC TV’s Jane Wells reports on the possibility of the SAFER Banking Act moving forward. It would allow for increased banking access in the legal cannabis industry, one of the problems that business has faced.
Another problem the businesses face is the stock slump across the board.
Canopy is 80% from the 52-week high, but shares are up 136% in a month. It’s a 92-cent stock.
GrowGeneration is 67% from the 52-week high. Shares are up 8.75% in a month. The stock is valued at $2.86 a share.
The Global X Cannabis ETF (POTX) is 59% from a 52-week high. It’s up 11% in a month.
Trulieve is 58% from the 52-week high. It’s up 89% in a month. The stock is at $6.74 a share.
Aurora is 55% from the 52-week high. The U.S.-listed stock is up 58% in a month, trading at 70 cents a share.
Scotts Miracle-Gro has cannabis investments. The stock is 41% from a 52-week high, and it’s up 1.7% in a month.