{"id":23355,"date":"2024-05-24T09:39:47","date_gmt":"2024-05-24T14:39:47","guid":{"rendered":"https:\/\/www.eoption.com\/mid-morning-look-may-24-2024\/"},"modified":"2024-05-24T09:39:47","modified_gmt":"2024-05-24T14:39:47","slug":"mid-morning-look-may-24-2024","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/mid-morning-look-may-24-2024\/","title":{"rendered":"Mid-Morning Look: May 24, 2024"},"content":{"rendered":"\n
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Mid-Morning Look<\/span><\/b><\/p>\n

Friday, May 24, 2024<\/span><\/b><\/p>\n\n\n\n\n\n\n\n
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Index<\/span><\/p>\n<\/td>\n

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Up\/Down<\/span><\/p>\n<\/td>\n

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%<\/span><\/p>\n<\/td>\n

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Last<\/span><\/p>\n<\/td>\n<\/tr>\n

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DJ Industrials<\/span><\/b><\/p>\n<\/td>\n

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51.84<\/span><\/p>\n<\/td>\n

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0.13%<\/span><\/p>\n<\/td>\n

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39,112<\/span><\/p>\n<\/td>\n<\/tr>\n

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S&P 500<\/span><\/b><\/p>\n<\/td>\n

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28.21<\/span><\/p>\n<\/td>\n

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0.54%<\/span><\/p>\n<\/td>\n

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5,296<\/span><\/p>\n<\/td>\n<\/tr>\n

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Nasdaq<\/span><\/b><\/p>\n<\/td>\n

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121.96<\/span><\/p>\n<\/td>\n

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0.74%<\/span><\/p>\n<\/td>\n

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16,858<\/span><\/p>\n<\/td>\n<\/tr>\n

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Russell 2000<\/span><\/b><\/p>\n<\/td>\n

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13.93<\/span><\/p>\n<\/td>\n

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0.68%<\/span><\/p>\n<\/td>\n

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2,062<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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 <\/p>\n

U.S. stocks open higher following the mini rout on Thursday, as a combination of manufacturing data and profit taking following a \u201csell the news\u201d type event after NVDA results boosted stock markets initially yesterday to record highs (for S&P and Nasdaq) before fading all day to end near lows. Coming into today, the S&P 500 index is on track for its 1st<\/sup> negative week in 6 while the Nasdaq looks to extend its winning streak to 5 in a row. Gold prices are on track for the first weekly decline in three, as Treasury yields, and the dollar bounce this week. Stocks got an added boost around 10:00 AM after the University of Michigan 1-yr and 5-yr inflation expectations showed improvement from two-weeks ago, boosting Fed rate cut hopes. Treasury yields turn negative, 10-year-yield last slightly down at 4.472% after the data. After disappointing market breadth yesterday, seeing a nice bounce early with nearly all eleven S&P sectors in the \u201cgreen\u201d after all finished in the \u201cred\u201d Thursday. Market volumes may slow as the day progresses heading into the long 3-day Memorial Day holiday weekend. <\/p>\n

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Economic Data<\/p>\n

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  • U.S. April Durables ex-transportation orders +0.4% vs. est. +0.1% vs March unchanged; April Durables ex-defense orders unchanged vs March +1.2% (prev +1.1%); April Durables shipments +1.2% vs March +0.1%; April nondefense cap shipments ex-aircraft +0.4% vs March -0.3%; April nondefense cap orders ex-aircraft +0.3%, (cons +0.1%) vs March -0.1%.<\/li>\n<\/ul>\n<\/div>\n
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    • University of Michigan surveys of consumers 1-year inflation outlook final May 3.3% vs prelim 3.5% and final April 3.2% while surveys of consumers 5-year inflation outlook final May 3.0% vs prelim 3.1% and final April 3.0% (improving inflation data points from prior helped boost market sentiment). <\/li>\n
    • University of Michigan surveys of consumers sentiment final May 69.1 vs. consensus 67.5 and vs preliminary May 67.4 and final April 77.2; current conditions index final May 69.6 vs prelim May 68.8 and final April 79.0; expectations index final May 68.8 vs prelim May 66.5 and final April 76.0.<\/li>\n<\/ul>\n

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      Macro<\/span><\/p>\n<\/td>\n

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      Up\/Down<\/span><\/p>\n<\/td>\n

      		\n

      Last<\/span><\/p>\n<\/td>\n<\/tr>\n

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      WTI Crude<\/span><\/b><\/p>\n<\/td>\n

      		\n

      0.63<\/span><\/p>\n<\/td>\n

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      77.50<\/span><\/p>\n<\/td>\n<\/tr>\n

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      Brent<\/span><\/b><\/p>\n<\/td>\n

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      0.59<\/span><\/p>\n<\/td>\n

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      81.95<\/span><\/p>\n<\/td>\n<\/tr>\n

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      Gold<\/span><\/b><\/p>\n<\/td>\n

      		\n

      1.80<\/span><\/p>\n<\/td>\n

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      2,339.00<\/span><\/p>\n<\/td>\n<\/tr>\n

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      EUR\/USD<\/span><\/b><\/p>\n<\/td>\n

      		\n

      0.0033<\/span><\/p>\n<\/td>\n

      		\n

      1.0846<\/span><\/p>\n<\/td>\n<\/tr>\n

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      JPY\/USD<\/span><\/b><\/p>\n<\/td>\n

      		\n

      0.05<\/span><\/p>\n<\/td>\n

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      157.00<\/span><\/p>\n<\/td>\n<\/tr>\n

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      10-Year Note<\/span><\/b><\/p>\n<\/td>\n

      		\n

      -0.002<\/span><\/p>\n<\/td>\n

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      4.473%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

       <\/span><\/p>\n

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      Sector Movers Today<\/p>\n

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      • In Media & Telecom: GCI<\/b> was upgraded from Sell to Neutral at Citigroup and raise tgt to $3.60 from $1.95 based on more robust revenue trends within the digital segment as believes these trends pave the way to grow the topline in 2025. LGF<\/b> reported Q4 adj EPS $0.27 vs. est. loss (-$0.11) and $0.21 last year; Q4 revs $1.12B vs. est. $1.07B as shares tumble. Reuters reported GOOGL<\/b> invested $350M in India’s Flipkart for minority stake in latest funding round.<\/li>\n<\/ul>\n<\/div>\n
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        • In Payments: Wedbush initiated coverage on several names: initiated Outperform on TOST<\/b> ($30 tgt) citing robust location expansion in the U.S. as well as nascent overseas success; OP rated on CINT <\/b>($5 tgt) saying is well positioned to generate low single and mid-teens revenue growth for 2024\/2025; OP rated on GDYN <\/b>($13 tgt) citing outsized exposure to the retail and tech, media, and telecom verticals; OP rated on HURN<\/b> ($110 tgt) citing outsized exposure to healthcare and education, two verticals undergoing disruptive change and Neutral on FLYW, FOUR<\/b>.<\/li>\n
        • In Auto Retail: Mizuho noted auto services operator MNRO<\/b> reported Thursday that comp sales for the fiscal Q4 period ending March 30th declined by (7.2%), tracking well below a published consensus expectation for +1.9% and noted quarter-to-date, comp sales through mid-May have decelerated further to about (12%). The firm notes softer prints from AZO<\/b> this week and ORLY<\/b> in late April are fueling investor debate on weakening demand trends across the auto parts and services space (note AAP <\/b>is expected to report next week). <\/li>\n<\/ul>\n

           <\/span><\/p>\n

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          Stock GAINERS<\/p>\n

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          • AAPL<\/b> +1%; price tgt raised to $275 from $250 at Wedbush to reflect iPhone demand turning the corner into an AI driven iPhone 16 supercycle now on the horizon.<\/li>\n<\/ul>\n<\/div>\n
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            • BAH<\/b> +5%; after results and guidance; Q4 EPS $1.33 tops $1.23 estimate on revs $2.77B vs. est. $2.72B; Sees FY25 revenue growth 8%-11%, vs. consensus $11.48B.<\/li>\n
            • DECK <\/b>+12%; Q4 results came above already lofty expectations (sales $959.758M vs est. $887.55M, gross margin 56.2%) and guidance for FY25 was relatively on par with the Street.<\/li>\n
            • GH <\/b>+14%; shares jumped after FDA advisors recommended the approval of its blood test to detect a cancer that begins in the colon or rectum; news pushed shares of EXAS<\/b> lower as tests for colorectal cancer include stool-based tests such as the company\u2019s Cologuard.<\/li>\n
            • MGNI <\/b>+11%; was upgraded from Neutral to Buy at Bank America and raise tgt to $15 from $13 on increased confidence that it will become the leading supply-side tech solution in CTV advertising (mid-teens grower medium term), as the industry transitions to more automated (programmatic) ad execution, a technology MGNI specializes in.<\/li>\n
            • MRUS <\/b>+31%; after interim data its experimental treatment, petosemtamab, in combination with MRK\u2019s<\/b> Keytruda showed a 60% response rate in reducing or clearing tumors in 10 patients with head and neck cancer.<\/li>\n
            • NLST <\/b>+10%; after a U.S. jury said MU<\/b> owes NLST<\/b> $445 million in damages for violating Netlist’s patent rights in memory-module technology for high-performance computing.<\/li>\n
            • ROST<\/b> +9%; reported top\/bottom-line beat, on better GM and SGA and guided 2Q bracketing consensus and raised FY EPS to a high end above the Street to $5.79-$5.98 from $5.64-$5.89 (est. $5.92) and backs FY24 comp store sales view.<\/li>\n<\/ul>\n

               <\/span><\/p>\n

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              Stock LAGGARDS<\/p>\n

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              • ARDX<\/b> -3%; announced the company reached a "mutual" decision that Chief Commercial Officer Susan Rodriguez would resign from her role.<\/li>\n<\/ul>\n<\/div>\n
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                • CVCO –<\/b>4%; posted Q4 EPS of $4.03 which was below consensus estimate of $4.51 while total sales of $420M were below last year’s $476M level and Q4 total shipments were 12% lower YoY.<\/li>\n
                • DOMO<\/b> -7%; after the results as Q1 adj EPS loss (-$0.33) worse than est. loss (-$0.23) while Q1 revs $80.1M vs. est. $79.49M; but guided Q2 EPS loss (26c-30c) on revs $76M-$77M, below consensus loss (-$0.08)\/$79.6M.<\/li>\n
                • IMCR<\/b> -8%; after the abstract for its upcoming ASCO presentation from brenetafusp, its PRAME-targeting bispecific treating melanoma, was released.<\/li>\n
                • INTU<\/b> -7%; reported FQ3 revenues ahead of consensus expectations, although investors were disappointed in the updated Consumer revenue guidance (~8% Y\/Y vs. buy-side expectations of ~10% Y\/Y).<\/li>\n
                • SMMT<\/b> -22%; after trial data on Akeso\u2019s lung cancer drug disappointed; Summit acquired exclusive rights of the drug in the US, Canada, EU, and Japan from Akeso for $500 million in late 2022.<\/li>\n
                • VSTM<\/b> -60%; reversing gains of over 50% overnight after more details revealed from ASCO abstracts released.<\/li>\n
                • WDAY<\/b> -12%; reported Q1 EPS, revs and adj operating income above consensus but cuts FY25 subscription revenue to $7.7B-$7.725B from $7.725B-$7.775B<\/li>\n<\/ul>\n<\/div>\n

                  <\/p>\n