Stocks @ Night is a daily newsletter that provides a comprehensive overview of the market’s performance and sets the stage for the next trading session. Subscribers receive this newsletter directly in their inboxes, ensuring they stay ahead of the curve with timely insights and analysis. As the S&P 500 logged its third consecutive losing day, key players in the market are keeping a close eye on several high-profile companies set to report earnings this week.

Home Depot: A Retail Giant Under Scrutiny

Home Depot, the retail home improvement giant, is scheduled to report earnings before the market opens. The stock has seen a significant decline, down 8.9% over the past three months and 13% since Thanksgiving. Investors are closely watching Home Depot’s performance, given its pivotal role in the home improvement sector, which has been heavily influenced by the pandemic-driven surge in home renovations. The company’s earnings report will provide critical insights into consumer spending trends and the overall health of the housing market.

American Tower and Crown Castle: Real Estate Investment Trusts in Focus

American Tower, a leading cell tower real estate investment trust (REIT), is set to report earnings on Tuesday. The stock is 21% below its 52-week high, hit in mid-September, and has declined 6% over the past three months. Crown Castle, another major player in the sector, has seen a 12% drop in three months and is 23% below its 52-week high, also reached in mid-September. These REITs are crucial for understanding the broader trends in the telecommunications infrastructure sector, which is experiencing rapid growth due to the increasing demand for 5G networks and data services.

Bank of Montreal: A Canadian Banking Giant

Bank of Montreal, Canada’s third-largest bank by market capitalization, is set to report earnings before the market opens. The bank, which stands in the top ten of Canada’s largest companies by market cap, has seen a 5% increase in its U.S.-traded shares over the past three months. This positive performance reflects broader trends in the Canadian banking sector, which has been resilient despite global economic uncertainties. Investors will be looking for any signs of strength or weakness in the bank’s financials, which could have implications for the broader North American financial landscape.

The Great American Consumer: Resilience Amid Economic Uncertainty

Several big consumer-related companies are set to report earnings on Tuesday. On Monday’s “Closing Bell,” JPMorgan’s retail analyst Matt Boss told CNBC TV’s Scott Wapner that “the consumer remains resilient.” Despite this optimism, the SPDR S&P Retail ETF (XRT) is down around 6% so far in February and 10.7% from its November high. Companies like Krispy Kreme, Boston Beer, Caesars Entertainment, Cava Group, and Jack in the Box are all reporting this week, offering a snapshot of consumer spending habits across various sectors. For instance, Krispy Kreme’s stock is down 18% in three months and 49% from its March 2024 high, reflecting broader trends in the food and beverage industry.

The consumer remains resilient.
Matt Boss, JPMorgan’s retail analyst

The Big Short: Kohl’s Under Pressure

A new report from S&P Global Market Intelligence reveals that Kohl’s is the most shorted stock in the market. The stock has plummeted nearly 10% in a month and is 58% below its April high. This significant short interest suggests that market participants are betting heavily against the retailer, which could have implications for the broader retail sector. Kohl’s performance will be closely watched, as it serves as a bellwether for the health of the retail industry, which has been grappling with shifting consumer preferences and the rise of e-commerce.

Software Breakout Fading: Tech Stocks Under the Microscope

CNBC TV’s Seema Mody will delve into the software sector on Tuesday. The S&P Software and Services Industry is 8% below its December high, indicating a potential cooling off in the tech sector. Notable performance variations include IBM, which is up around 17% in a month, and Palantir Technologies, which has seen a 24% drop in a week but remains up 14% in the last month. Despite its recent volatility, Palantir is up almost 300% in a year. Fortinet, another tech giant, has seen a 12% increase in a month. On the other end, Epam, Akamai Technologies, and Cadence Design Systems have all experienced significant declines, with Epam down 18%, Akamai down 20%, and Cadence down 21% in a month. The tech sector’s performance will be crucial for understanding the broader trends in innovation and digital transformation.

The Chips: Semiconductor Sector in Turmoil

CNBC TV’s Jon Fortt highlighted on Monday’s “Closing Bell: Overtime” that the semiconductor sector is also facing challenges. The VanEck Semiconductor ETF (SMH) fell 2.6% on Monday and is now down 14% since hitting a high on July 11. Intel, the sector leader, has seen a 16.5% increase in the last month but is down 43% in a year. NXP Semiconductors and Analog Devices have both seen gains of around 9% in a month. However, Marvell Technology and Cadence Design Systems are both down 21% in a month, while Skyworks Solutions has plummeted 27% in a month. These trends reflect the broader challenges facing the semiconductor industry, including supply chain disruptions and geopolitical tensions. The sector’s performance will be critical for understanding the future of technology and innovation in the U.S.

The chips are also suffering.
Jon Fortt, CNBC TV

Cattle Prices Hit Records: Agriculture Economy in Focus

CNBC TV’s Pippa Stevens will focus on the agriculture economy, particularly cattle prices, which have hit record highs. BRF SA, the Brazilian beef giant trading in the U.S., is 32% below its December high and has seen a 12% decline in February. This trend highlights the broader challenges and opportunities in the agriculture sector, which is crucial for the U.S. economy. Rising cattle prices could have implications for consumer spending on meat products and the overall health of the agriculture industry.

PayPal: Investor Day and Market Expectations

PayPal is set to hold its investor day on Tuesday. CNBC’s MacKenzie Sigalos will be following the meeting and the stock. PayPal is 20% below its Dec. 9 high and has seen a 15% decline in February. Investors will be looking for insights into PayPal’s strategic direction and financial performance, which could have implications for the broader fintech sector. The company’s investor day will provide a platform for PayPal to showcase its innovations and address market concerns, potentially influencing investor sentiment and stock performance.