Friday, March 24, 2023

Euro Banks Take Another Hit!

Trade of the Day Wake-Up Watchlist

Good morning, Wake-Up Watchlisters!

TGIF! Snag a cup of the brown stuff and let's review what's going on in the premarket.

European banks continue to struggle, with German lending powerhouse Deutsche Bank in the spotlight today (see more on that below) after the multi-billion-dollar rescue of Credit Suisse. While the Federal Reserve is slowing down their planned rate hikes, Powell still bumped the rate 25 points on Wednesday despite the struggles of the sector. This has had a chilling effect as it is clear that the central banks are not going to completely halt monetary policy actions which could expose or highlight more vulnerabilities.

Regardless of which side of the bed Jerome Powell wakes up on, we are winning in The War Room. This Monday we locked in two more 30%+ wins, and we're positioned for more.

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Now, let's take a look at the top-moving stocks this morning.

Deutsche Bank (NYSE: DB)

Deutsche is down 11.33% premarket. The bank's credit default swap insurance, to protect against default, now sits at a four-year high, and investors are rightfully concerned. The stability of all European banks might be in jeopardy as financial regulators and governments work to prevent the stresses of inflation and recessions from destabilizing the sector.

While this banking crisis will be tough for many banks there are some who will thrive in this environment, and we just picked up one of the best for our Trade of The Day Plus Portfolio.

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Exelixis Inc. (Nasdaq: EXEL)

Exelixis Inc. is up 4.12% premarket. This pop comes after company leadership announced a commitment to $550 million dollars in share buybacks this year. Although stock buybacks will not magically change the fundamentals of the biopharmaceutical company, shareholders are certainly not going to turn down the short-term gains.

If you are more interested in long-term gains, our friend Alex Green has identified what could be the next revolution in healthcare and its gonna be big!

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Block Inc. (NYSE: SQ)

Block Inc. is down 5.69% premarket. This comes after notorious short sellers Hindenburg Research released a report Thursday afternoon that sent shares tumbling. The report alleges that the online payment company which owns Square was "inflating user metrics". While the Block team begins their legal defense some shareholders choose to jump ship, Cathie Wood and her Ark Investment fund instead have used the depressed stock price as an opportunity and picked up over $20 million worth of shares since the drop.

 

Match Group Inc. (Nasdaq: MTCH)

Match Group Inc. up 3.66% premarket. The dating app company which owns Tinder and Hinge has been on the receiving end of a number of analyst upgrades, Barclays being the latest. Investment groups are paying attention as well, Edgewood Management, Neuberger Berman Group LLC and Price T. Rowe have all substantially added to their positions in Match Group Inc recently.

 

Those are the top market movers today.

Happy trading!

The Wake-Up Watchlist Research Team

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