Monday, February 12, 2024

🚩With Earnings Season Fading, This Sector Still Looks Bullish

Good morning. Looking at the market by sectors, tech's hot run could be due for a cooldown...
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. Looking at the market by sectors, tech's hot run could be due for a cooldown following the end of earnings season. But one sector still looks inexpensive, not to mention in an uptrend. That sector is energy. Investment capital is moving back into the space as the economics have improved in recent years, and even conventional fuels such as oil and diesel look poised to trend higher.

Investors have a rich field to invest in the sector, from high-income pipeline plays to oil majors to speculative producers and explorers. And traders can bet on everything from the price of oil itself to potential acquisition opportunities.

Now here's the rest of the news:

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MARKETS
DOW 38,671.69 -0.14%
S&P 5,026.61 +0.57%
NASDAQ 15,990.66 +1.25%
*As of market close
Markets closed mixed on Friday, but the S&P 500 closed over 5,000 for the first time.
Oil rose 0.4 percent, closing at $76.54 per barrel.
Gold dipped 0.4 percent, ending at $2,039 per ounce.
Cryptocurrencies trended higher, with bitcoin at $47,479 at the stock market close.

Today's TOP TIPS
Invest With Industry Leaders Meeting Customer Demand
Customers can have rapidly changing tastes. A company needs to provide products or services that meet those tastes, but can also be flexible over time. Sometimes, a company will be behind the curve in adoption to changes.

Once they figure it out, however, shares may start to trend higher. As that happens, market expectations for a company can shift, resulting in a company going from being out of favor with the market to moving in favor.

» FULL STORY

Insider Activity Report: NextEra Energy (NEE)
Kirk Hachigian, a director at NextEra Energy (NEE), recently bought 20,000 shares. The purchase increased his stake by 44 percent, and came to a total cost of $1,116,700.

This is the first insider activity of the year. Several company directors, as well as the company President and CEO, bought shares last year. Two company insiders sold shares in the past year as well, with one of those sales coming from the exercise of stock options.

» FULL STORY

Unusual Option Activity: Advance Auto Parts (AAP)
Auto parts chain store Advance Auto Parts (AAP) is down over 56 percent in the past year. One trader is betting on further downside ahead in the coming weeks.

That's based on the March 15 $42.50 puts. With 31 days until expiration, 8,859 contracts traded compared to a prior open interest of 211, for a 42-fold rise in volume on the trade. The buyer of the puts paid $0.36 to make the bearish bet.

» FULL STORY

IN OTHER NEWS
Cocoa Prices Hit All-Time Highs

Cocoa prices are up over $1,000, or 40 percent, since the start of the year, hitting $5,874 per metric ton. The move has occurred as demand has stayed steady, but changing weather patterns, particularly El Nino, is causing drier temperatures in West Africa. Nearly three quarters of the world's cocoa is produced there.
China Deflation Accelerates

The overall price decline in China has hit its fastest level in 15 years, as the country has reported a 0.8 percent decline in its consumer price index. This is the fourth straight month of decline, and the steepest fall since September 2009. Some seasonal factors may have played a role, and the following months may see an improvement.
Japan's Soaring Stock Market May Stall Out

A resurgence in inflation in Japan has helped boost asset prices, including the country's stock market, the Nikkei. Japanese stocks rose 28 percent last year, and are up another 8 percent already this year. While the market is looking overbought in the short-term, few analysts are ready to declare an end to the bull market just yet.
FCC Bans Unsolicited AI Voices in Robocalls

After considering the matter in recent weeks, the Federal Communications Commission (FCC) is outlawing unsolicited robocalls from voices generated with artificial intelligence. The agency made the unanimous decision last week, citing the 1991 Telephone Consumer Protection Act.
Getaround Cutting One-Third of Workforce

Car-sharing company Getaround (GETR) is laying off one-third of its U.S. based workforce, according to a recent filing. The company helps vehicle owners rent out their vehicles to peers. The company is looking to restructure its workforce and operations as a means of reducing costs.

S&P 500 MOVERS
TOP
AMAT 6.976%
FSLR 5.714%
LRCX 5.523%
MDB 5.403%
KLAC 5.106%
BOTTOM
EXPE 17.665%
TTWO 8.791%
MRNA 6.641%
NCLH 5.857%
DXCM  5.163%

Quote of the Day
Earnings continue to come in better than expected, and contribute to some pretty positive moves in specific stocks. Overall, in terms of sentiment, that's allowed the market to continue to touch new highs.
- Michael Arone, chief investment strategist at State Street Global Advisors, on the market's overall push higher to the 5,000 level for the S&P 500 in recent weeks, a trend that may slow with the end of earnings season.

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