TUE, MAR 21, 2023

The goal of this newsletter is to get you ahead of the next day of investing and trading. It’s your first look at tomorrow and last look at today powered by the team of people who direct CNBC TV’s stock market coverage.

Tomorrow's Top CNBC Stories Tonight

GameStop's after-hours surprise

GameStop is up 30% in extended trade after the company reported a surprise quarterly profit – its first in two years. The stock closed at its lowest level since February 2021 less than a week ago.

A rough time for utilities

Notable weakness in utilities today, with nearly every constituent down 1% or more. Morgan Stanley cut price targets on a number of names, including the day’s worst performers, Atmos Energy, Consolidated Edison and Alliant Energy. The Utilities Select Sector SPDR ETF (XLU) is down 7% in 2023. The only sector down more than utilities so far this year is financials.

Darden's March run

Amid the outperformance in consumer discretionary stocks today, Darden Restaurants hit its highest level since January 2022. It’s one of the best performers in the sector this month, up nearly 7%. According to FactSet, 67% of the analysts that cover the stock have buy ratings. Zero have sell ratings.

Coinbase's surge alongside bitcoin

Bitcoin’s recent rebound continues benefiting related stocks. Coinbase extended its run today, gaining more than 11%. It’s also tracking for its third-straight monthly gain and best quarterly performance since its 2021 debut, up over 137% since the year’s start. However, it’s still 60% below its recent high.

Alphabet rebounds

Alphabet is the second-best performer on the Nasdaq 100 over the past week (behind Adobe) as tech mega-caps have rebounded. With the help of a 3% gain today, the Google parent is on pace for its best monthly performance since July 2015. Still, Alphabet is trading around 27% off its 52-week high.

Ethan Kraft | CNBC Stocks & Markets Editor
@ethan_kraft

Nike and the consumer stocks

Nike reported quarterly numbers this evening that beat expectations.
The stock is down after hours.
During the regular session the stock was up 3.6%, and it’s up 26% in six months.
The SPDR S&P Retail ETF (XRT) is up 2% in 2023 and down more than 8% in a month.
Over the last month, the leaders are Chico’s, up 19%; Stitch Fix, up 17% in a month; and Dick’s Sporting Goods, up 13% in a month.
Victoria’s Secret is down 19.7% in a month. Warby Parker is down 18.7% in a month, and Nordstrom is down 17.7% in a month.

The Senate Budget Committee's Wednesday hearing on how climate change is affecting the insurance market

All of the big names are having a big two days and most have also had decent runs in the last six months.
Hartford is up nearly 6% in two days and 10.3% in six months. The stock pays a 2.4% dividend.
Prudential is up 5.6% in two days, but down 10% in six months. The stock pays a 6.1% dividend.
Travelers is up 4% in two days and up 9.4% in six months. The stock pays a 2.2% dividend.
Marsh & McLennan is up 3% in two days and 4.4% in six months. The stock pays a 1.5% dividend.
Willis Towers Watson is up nearly 3% in two days and 12% in six months. The stock pays a 1.5% dividend.
Progressive is up 2.9% in two days and 15.5% in six months. The stock pays a dividend of a dime per share.
Aon is up 2.8% in two days and 11.6% in six months. The stock pays a small dividend of 0.7%.

A new survey on building materials pricing for 2023 shows changes are coming to lumber

CNBC’s Tom Rotunno turned it up earlier today, but a key finding is lumber prices are expected to drop 10%.
There are two lumber ETFs widely watched by the market, both with great names: iShares Global Timber & Forestry ETF (WOOD) and Invesco MSCI Global Timber ETF (CUT).
WOOD is down 2% in 2023, and CUT is down 3%.
Weyerhaeuser is one of the biggest names in the bunch, and it’s down 3.7% in 2023. The stock pays a 2.5% dividend.

Corporate bonds in the financials industry, beyond the biggest names

Ally Financial was up 7.6% today.
Synchrony Financial was up 5% today.
The bonds though tell a different story: Both companies have seen prices drop and yields double in about the last ten days.
The BondBloxx USD High Yield Bond Financial & REIT Sector ETF (XHYF) is down about 1.6% in March and off by 10.6% in a year. The dividend on this ETF is now 6.66%.