Bulls Hold The Latest Line
NEWS
Bulls Hold The Latest Line
Source: Tenor
Inflation fears have been replaced by recession concerns, with today’s consumer price index giving the bulls enough confidence to battle back. Technology stocks led the rebound, with retail earnings weighing on consumer-focused sectors. Bulls now have yesterday’s low to manage risk against as they venture onward. 👀
Today’s issue covers cooling consumer prices, Intel’s CEO appointment, forgotten retail favorites finding interest, and more from a busy day on Wall Street. 📰
Here’s the S&P 500 heatmap. 5 of 11 sectors closed green, with technology (+1.57%) leading and consumer staples (-2.17%) lagging.
Source: Finviz
And here are the closing prices:
|
S&P 500 |
5,599 |
+0.49% |
|
Nasdaq |
17,648 |
+1.22% |
|
Russell 2000 |
2,026 |
+0.14% |
|
Dow Jones |
41,351 |
-0.20% |
STOCKS
Stocks Rebound As Inflation Cools 🌡️
U.S. consumer prices rose less than anticipated during February, with CPI up 0.2% MoM and 2.8% YoY. Estimates of headline inflation were +0.3% and +2.9%. 🔻
Core inflation also came in 10 bps lower than expected at 0.2% MoM and 3.1%, its smallest increase since April 2021. Once again, shelter prices rose 0.3% MoM and accounted for nearly half of the monthly increase in inflation, with a decline in airline fares and gasoline offsetting the rise.
Analysts saw this as a positive sign that inflation’s acceleration risk is not as high as previous months’ readings indicated, especially as the sell-off in risk assets and macroeconomic uncertainty impact consumer and business confidence. 👍️
Tomorrow’s Producer Price Index reading will be the final look at inflation before the Fed’s rate decision next week. While no policy action is anticipated, Jerome Powell’s commentary will take center stage as the market looks for policy clues.
This catalyst was enough for bulls to mount a small comeback today in stocks and other risk assets. With yesterday’s lows holding, traders and investors now have a clear level to trade against vs. blindly buying the dip and hoping for the best. We’ll all be watching those lows closely to see if the positivity can continue. 👀
Source: Stocktwits
Meanwhile, American Eagle Outfitters joined the list of retailers who warned that their first quarter is off to a slower-than-expected start due to colder weather and weaker consumer confidence. While many executives expect business to rebound in the second half of 2025, they’re currently bracing for a cooldown until the economy finds its footing again. 🥶
STOCKTWITS PRODUCT UPDATE
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Source: Stocktwits
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COMPANY NEWS
Intel Appoints New CEO, Prompting A Pop 🧑💼
The struggling chipmaker’s shares are popping 10% after the bell on news that it’s secured a new CEO to replace interim co-CEOs David Zinsner and MJ Houlthaus.
It closes a chaotic four-year run in Intel’s history, with a plummeting stock price and activist investors pressuring the company to cut costs or spin off businesses due to its lack of progress in the artificial intelligence market. 😡
Lip-Bu Tan was CEO of Cadence Design Systems, which makes software used by all the major chipmakers. He was also an Intel board member until last year.
He’ll become Intel’s fourth permanent CEO in seven years, and his initial plan is to double down on the company’s strengths while taking calculated risks to catch up with the competition in other areas. 📝
Stocktwits sentiment jumped from its neutral to bearish range of the last week into slightly bullish territory on the news. With shares sitting near their year-to-date lows, we’ll see if investors (and analysts) come in to support the turnaround story.
Source: Stocktwits
STOCKS
Other Noteworthy Pops & Drops 📋️
Uber Technologies ($UBER +1%): The transportation giants terminated its agreement to acquire Delivery Hero’s Foodpanda business in Taiwan.
ZIM Integrated Shipping Services ($ZIM -4%): Fourth-quarter revenue ran 80% YoY, with earnings also topping estimates. Carried volume rose 25%, and average freight rate per TEU jumped by 71%.
Capital One ($COF +3%): Evercore ISI upgraded the stock to ‘Outperform’ from ‘In Line’ with an unchanged target of $200, citing an attractive valuation and underappreciation for the combined Capital One-Discover franchise.
Apple ($AAPL -2%): Morgan Stanley reduced its price target from $275 to $252, implying more than 12% downside despite maintaining its ‘Overweight’ rating. The postponement of an advanced Siri integration into Apple Intelligence may temper the current iPhone upgrade cycle vs. prior expectations.
Snowflake ($SNOW +2%): A report from The Information indicated the cloud data company is in discussions with Google about AI data security partnerships.
D-Wave Quantum ($QBTS +10%): Said a paper published in the Science journal confirmed that its annealing quantum computer outperformed one of the world’s most powerful classical supercomputers in solving complex magnetic materials simulation problems related to materials discovery.
GE Aerospace ($GE +2%): Announced plans to invest nearly $1 billion in its U.S. factories and supply chain to strengthen manufacturing and increase the use of innovative new parts and materials needed for the future of flight.
Oklo ($OKLO +5%): Nuclear energy stocks jumped after a coalition of tech giants pledged support for tripling global nuclear energy capacity by 2050.
Hewlett Packard Enterprise Company ($HPE -2%): Daiwa Securities downgraded the stock to ‘Neutral’ from ‘Outperform,’ cutting its price target from $25 to $16.
COMPANY NEWS
Groupon, Rumble, & iRobot, Oh My! 🤭
Three stocks with large retail followings popped up on the radar today after lacking a catalyst for several months. 🧭
Groupon soared 43% after the e-commerce company’s positive guidance outweighed a mixed quarterly performance. Its fourth-quarter loss of $1.20 was wider than the $0.04 loss expected, and adjusted EBITDA also fell 30% YoY.
Revenue fell 5% YoY but topped estimates by about 3%. Group billings fell 1%, unit sales dipped 8%, and active customers dropped 6% YoY. Still, a positive free cash flow of $63.2 million, an upbeat outlook driven by the North American market, and a revamp of the Board of Directors boosted sentiment. 👍️
Conservative video-sharing platform Rumble looked to boost itself by purchasing 188 Bitcoins at an average price of $91,000. The company has failed to pitch investors a sustainable long-term business plan but is seemingly looking to capture the crypto crowd to broaden its shareholder base and buoy its share price. 🪙
Lastly, iRobot tanked 35% after the company said there is ‘substantial doubt’ about its ability to stay in business. After regulatory pressures caused Amazon to walk away from its $1.7 billion acquisition, the Roomba maker has faced mounting debt and spiraling revenue growth. 😵💫
It faces increased competition from Chinese robotic vacuum makers, and it’s unclear whether its new product launches will turn the ship around successfully.
Despite prices falling to new all-time lows, Stocktwits sentiment remains in ‘extremely bearish’ territory, as some bet on another buyer stepping in. 🤷
PRESENTED BY STOCKTWITS
CMT Lunch Hour: Failed Breakouts Galore 😱
Pro trader and Stocktwits user Brian Shannon (@alphatrends) answers questions directly from the Stocktwits community on how to handle the current environment. He breaks down the current market trends, trading strategies for volatility, the difference between a moving average and market support, and much more.
Plus, ticker requests: PLTR ( ▲ 7.18% ) ATRO ( ▼ 1.26% ) CAVA ( ▲ 2.96% ) AVGO ( ▲ 2.18% ) OKTA ( ▲ 1.66% ) HOOD ( ▲ 7.04% ) DDOG ( ▲ 0.07% ) ZS ( ▼ 0.79% )
WHAT’S ON DECK
Tomorrow’s Top Things 📋
Economic data: Producer Price Index (8:30 am), Jobless Claims (8;30 am). 📊
Pre-Market Earnings: D-Wave Quantum ($QBTS), Ballard Power Systems ($BLDP), Dollar General ($DG), Village Farms ($VFF), Weibo ($WB), FUTU Holdings ($FUTU). 🛏️
After-Hour Earnings: DocuSign ($DOCU), Blink Charging $(BLNK), Ulta Beauty ($ULTA), Skillz ($SKLZ), GrowGeneration ($GRWG), BuzzFeed ($BZFD). 🎧
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. 👍
Links That Don’t Suck 🌐
🧑🏫 Learn stock screening strategies from two-time investing champion Mark Minervini*
👮 Trump set to name Bowman as Fed’s top bank cop
😎 Solar and wind beat coal in the US for the first time
💊 Roche signs $5.3 billion deal with Danish obesity drugmaker, Novo Nordisk stock slides 4%
⏸️ SEC hits pause on XRP, Solana, Litecoin, Dogecoin ETFs — retail backs Ripple but skeptical on others
*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.
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