Stock futures tick higher on Tuesday morning

JPMorgan is promoting Toll Brothers, saying the stock is cheaper to trade than peers

JPMorgan raised shares of Toll Brothers from a neutral rating to an overweight rating, saying in a note to clients on Tuesday that the stock was trading at a steep discount to its homebuilder peers.

Analyst Michael Rehout said Toll Brothers is “cheaper than our outlook for near-average gross margins and only slightly below average ROE for its large-caps in 2023 and 2024,” noting that The company trades at a discount to book value. Competitors

Shares rose 3% on the market.

CNBC Pro subscribers can read more on the phone here.

– Samantha Sabin

Best Buy, Dick’s Sporting Goods & More – The Market’s Biggest Move

A number of stocks move in pre-market trading due to earnings etc.

Best buy — The company’s shares rose after the earnings beat and boosted its 2023 fiscal outlook.

Deck sports equipment — Shares initially rose on revenue and profit, as well as better-than-expected sales and raised guidance in the third quarter, but then fell.

Abercrombie & Fitch — The retail stock rose nearly 13% compared to its earnings.

Read more here.

– Carmen Reinick

Wall Street cuts prices for Zoom Video after weak guidance

shares Zoom video It fell about 9% in premarket trading after delivering weak guidance for the fourth quarter.

The video conferencing company reported better-than-expected $1.07 in adjusted earnings per share for the third quarter, but it didn’t beat Wall Street analysts. Many lowered their prices for Zoom last night and this morning.

Deutsche Bank analyst Matthew Nicknam wrote: “We are struggling to find a catalyst for the near-term, with online business likely to be under pressure over the next few quarters, and our estimates show a risk to the road revenue numbers from here. ,” wrote Deutsche Bank analyst Matthew Nicknam, who lowered his price target. From $95 to $75 per share in the stock.

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Piper Sandler, Moffitt Nathanson, Mizuho, ​​UBS and Wells Fargo also cut their price targets on Zoom Video.

MoffettNathanson analyst Sterling Authy, in lowering his price target to $85 from $80, said Zoom’s “turnover is still a quarter.”

“The breadcrumbs are being laid here to understand when the overall growth of the business can be affected, and if everything goes well, it is still three quarters into the future. However, it is not entirely clear whether the bad macro environment (layoffs) will extend the timeline to a turnaround, or just result in lower growth rates ahead of the turn,” Auty said in a note to clients.

– Jesse Pound, Michael Bloom

Wilson says stock-picking opportunities are good for the market

One of the top strategists on Wall Street says that the next boom period for stocks will not be like the top heavy period of the last decade but will be a rich environment for stock pickers.

Morgan Stanley chief U.S. equity strategist Mike Wilson said Tuesday that while he expects the S&P 500 to bounce back from here before bottoming out in 2023, stocks see a sustained rally ahead. Starting to separate from each other.

“Probably one of the sharpest things we see going forward is that there will no longer be a 10-stock market. There will be more opportunities. It will be more democratic in the stock market,” Wilson said. Wilson said. The squawk box.”

“That doesn’t mean it’s going to be easy as a stock picker, but there will be a lot more participants. The atmosphere is getting better. And that’s what we’re seeing,” he added.

Wilson released his 2023 vision last week. Read more about his prediction on CNBC Pro.

– Jesse Pound

Best Buy jumps in after uploading the full year guide

Shares of Best Buy popped more than 7% in the market after the electronics retailer raised its 2023 financial outlook.

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“We are updating our FY23 outlook to exceed our expected Q3 results while our Q4 expectations remain unchanged,” said CFO Matt Blonas. “We now expect comparable sales to decline approximately 10% and our non-GAAP operating income levels2 slightly higher than 4.0%.”

The company also posted third-quarter fiscal revenue and earnings that beat analyst expectations.

– Fred Umbert

The caravan descends one by one

Analysts continued to be bullish the caravan, Cowen is the latest company to land a used car dealership. Cowen lowered his rating on the stock to outperform from $55 to $10.

“CVNA has not met 22 profitability targets while carrying a significant debt load,” the company wrote, adding that it now estimates the company will not achieve EBITDA profitability until 2024. Free cash flow.”

Caruana shares fell 97% in 2022.

CNBC Pro subscribers can read more here.

– Sam Sabin

European markets are cautiously higher as investors assess economic fears

European markets were relatively higher on Tuesday as investors in the region tracked concerns among the US and Asia-Pacific peers over China’s tightening of Covid restrictions, which continues to weigh on output.

Pan-European Stokes 600 It was up 0.3% in early trade. Oil and gas stocks added 3.2% after Saudi Arabia denied a report that OPEC+ may boost oil production, while technology stocks fell 0.5%.

– Elliot Smith

CNBC Pro: Morgan Stanley Wilson says inflation is slowing, but warns of ‘new era’

Watch the full CNBC interview with Morgan Stanley's Mike Wilson

Morgan Stanley’s head of U.S. equity strategist Mike Wilson said he expects “a very, very slight decline in inflation,” and predicted when that would happen.

But he said there were two areas that were exceptions, where inflation could be “sticky”.

CNBC Pro subscribers can read more here.

– Vision Tan

CNBC Pro: Amazon is down 40% this year – is it time to buy? Market experts give their opinion

Once the darling of Wall Street, Amazon This year it has lost some brightness. The e-commerce giant’s stock is down more than 40%, performing well S&P 500which is down about 15% over the same period.

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Is it time for investors to pull back? Two market experts appeared on CNBC’s “Street Signs Asia” on Thursday to make the case for and against buying the stock.

CNBC Pro subscribers can read more here.

– Xavier Ong

Oil hit a low level not seen since January in Monday’s trading

Crude oil prices fell to levels not seen since January in Monday’s trading.

West Texas Intermediate It fell 0.4% to $79.73 a barrel after hitting a low of $75.08. It hasn’t lost since Jan. 3, when it traded as low as $74.27.

Brent It lost 0.2%, ending at $87.45 after dipping as low as $82.31. This was the lowest level since January 11.

Prices for both have cooled after jumping earlier this year with Russia’s invasion of Ukraine.

Stocks make the biggest moves after hours

These are the stocks that made the biggest moves after hours:

  • Zoom-in shares fell 4.4% after giving a weak outlook for the fourth quarter despite higher expectations for revenue and earnings.
  • Dell – The technology company popped as much as 6% after missing estimates on revenue and earnings per share in the third quarter.
  • Urban Regulators – Shares rose 2.6% in the latest quarter after reporting better-than-expected revenue growth, despite earnings per share falling a penny short of estimates.

See the full list here.

– Alex Haring

Stock futures open near flat

Stock futures opened near flat on Monday night.

Futures for the Dow were down 0.01%.

S&P 500 futures lost 0.01%, while Nasdaq 100 futures added 0.01%.

– Alex Haring

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