Post-Election Gains Disappear
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NEWS
Post-Election Gains Disappear
Source: Tenor.com
All of the post-election optimism has faded, as stocks give back their gains and downside momentum broadens out. Target, Best Buy, and other retailers are sounding the alarm about the impact of tariffs on an already stretched consumer. Plus, bulls search wide for a reason to defend Bitcoin at a key support level. 👀
Today’s issue covers bears broadening their attack on stocks, CrowdStrike and AeroVironment’s crash, and other noteworthy pops & drops. 📰
Here’s the S&P 500 heatmap. 0 of 11 sectors closed green, with technology (-0.08%) leading and financials (-3.52%) lagging.
Source: Finviz.com
And here are the closing prices:
|
S&P 500 |
5,778 |
-1.22% |
|
Nasdaq |
18,285 |
-0.35% |
|
Russell 2000 |
2,080 |
-1.08% |
|
Dow Jones |
42,521 |
-1.55% |
STOCKS
Bears Broaden Their Attack 🐻
It was another day of volatility in the market, with the major indexes pushing toward ‘correction territory’ and giving back all of their post-election gains.
Small-cap stocks are leading to the downside, as recession fears are hitting the smallest and ‘riskiest’ companies in the market. Adding to the fear were comments from Best Buy and Target signaling that price increases would be highly likely under Trump tariffs and their results signaling consumer softness. ⚠️
Source: Koyfin
The growth fears hit a variety of sectors across the board, particularly financials, as the market’s weak breadth spread. As the chart above shows, the market-cap and equal-weight indexes had a hot start after the election but stalled for the last three months and have begun to roll over now. 📉
Given these macro headwinds, volatility is expected to stick around. Canada and China retaliated against Trump’s tariffs this afternoon. Then, Commerce Secretary Howard Lutnick suggested a compromise could be in the cards.
Navigating this uncertainty is difficult for business leaders, investors, politicians, and consumers alike. We’ll have to wait and see if the market’s late-day bounce sticks, but right now, retail sentiment suggests many remain in defense mode until some of these macro headwinds dissipate. 🛡️
P.S. President Trump is set to address the Joint Session of Congress tonight at 9:00 pm ET, and you can watch it live on Stocktiwts. Tune in here. 👀
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EARNINGS
CrowdStrike Succumbs To Market Weakness 😢
The cybersecurity firm reported fourth-quarter earnings and revenue that topped estimates. Like every other company in the tech space, management is leaning into the potential AI tailwinds. CEO George Kurtz said, “As businesses of all sizes rapidly adopt AI, stopping the breach necessitates cybersecurity’s AI-native platform.” 🤖
However, disappointing first-quarter earnings guidance weighed on the stock, with management expecting costs to rise after last summer’s nationwide outage. It expects $73 million more in outage-related costs in the first quarter, plus $43 million in more customer-commitment initiatives designed to retain customers.
Shares fell 8% after the bell, though sentiment remains in ‘bullish’ territory as investors look for potential ‘buy the dip’ opportunities in their favorite names. 🛍️
Source: Stocktwits
Another retail favorite stock, AeroVironment, is also down sharply after the bell. The defense contractor’s fiscal third-quarter earnings topped estimates while revenues missed by a wide margin.
The company’s manufacturing occurs in California, which was impacted by the wildfires. Meanwhile, on the demand side, shifting U.S. support for Ukraine is hurting the company, given that 38% of its total revenue came from the country during the fiscal year of 2024. 😬
Shares are down 18% to new 52-week lows. Unlike with CrowdStrike, the Stocktwits community is not buying the dip here, with sentiment ‘extremely bearish.’
Source: Stocktwits
STOCKS
Other Noteworthy Pops & Drops 📋️
Sandisk ($SNDK -3%): Morgan Stanley Joseph Moore initiated coverage of SanDisk stock with an ‘Overweight’ rating and a $84 price target, suggesting a 67% upside potential in the flash and advanced memory technology company.
BlackRock ($BLK -1%): The asset manager agreed to a $22.8 billion deal to acquire a majority stake in ports on both sides of the Panama Canal. It comes as U.S. President Donald Trump attempts to limit Chinese interests in the region.
CME Group ($CME -2%): The exchange saw a monthly average daily volume (ADV) record of 33.1 million contracts, a 12% YoY increase. Crypto ADV surged 234%.
Sealsq ($LAES +9%): Broke its four-day losing streak after the company announced that it is debt-free and “well positioned” for international expansion. It will also release earnings on March 21. Cash reserves also peaked above $90 million in January 2025.
Honeywell International ($HON -1%): The industrial giant agreed to acquire Sundyne from private equity firm Warburg Pincus for $2.16 billion in cash. Honeywell expects the deal to be immediately accretive to its sales growth and segment margin.
Vistra Corp. ($VST +4%): Bank of America Securities upgraded the energy company’s shares from ‘Neutral’ to ‘Buy’ but lowered its target from $164 to $152.
Box, Inc. ($BOX -4%): The company’s fourth-quarter earnings were flat YoY, while revenues rose 6.2%. Both values marginally exceeded management’s guidance.
Paysafe ($PSFE -18%): The online payments company’s fourth-quarter earnings and full-year 2025 guidance failed to meet estimates, with revenue rising 1% YoY. Results were significantly impacted by accelerated merchant exits and associated credit losses
Okta ($OKTA +25%): The identity management company’s fourth-quarter results topped estimates, prompting several analyst upgrades and price target hikes.
GitLab ($GTLB +13%): The software development platform provider announced better-than-expected quarterly results, though a slowdown in key metrics and lackluster guidance dented sentiment. Shares rebounded sharply during the day.
GE Vernova ($GEV +0.2%): Signed a strategic framework agreement (SFA) with Amazon Web Services (AWS) to address accelerating energy demand.
PRESENTED BY STOCKTWITS
Daily Rip Live: With Two Special Guests 🧑🏫
Hosts Shay Boloor and Katie Perry are joined by special guests Robert Croak and Russell Star. Robert covers tariff impacts, long-term investment strategies for a volatile environment, AI/robotics and nuclear/solar opportunities, and a broader market outlook. Then, Russell breaks down the crypto environment, market dynamics and herd mentality, regulatory challenges, strategic reserves, and more!
WHAT’S ON DECK
Tomorrow’s Top Things 📋
Economic data: ADP Employment Change (8:15 am ET), S&P Global Composite PMI (9:45 am ET), ISM Services PMI (10:00 am ET), EIA Energy Inventories (10:30 am ET). 📊
Pre-Market Earnings: Ocugen ($OCGN), Editas Medicine ($EDIT), EyePoint Pharma ($EYPT), Foot Locker ($FL), Adidas ($ADDYY), Abercrombie & Fitch ($ANF). 🛏️
After-Hour Earnings: Rigetti Computing ($RGTI), Marvell Tech ($MRVL), Zscaler ($ZS), MongoDB ($MDB), Veeva Systems ($VEEV), Ring Energy ($REI), Nine Energy ($NINE). 🎧
P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍
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🧑💼 Starbucks poaches Nordstrom CFO as executive shake-up continues
🤦 Citi reportedly made another fund transfer error in April 2024 worth $6B
🚨 IMF imposes new Bitcoin rules on El Salvador through its $1.4 billion loan
🏬 Walgreens stock jumps as drugstore chain reportedly nears $10B take-private deal
🏦 CFPB drops lawsuit against JPMorgan Chase, Bank of America and Wells Fargo over Zelle fraud
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