Monday, March 11th 2024
Welcome to another recap on the week’s action and events!
I hope you enjoy this week’s recap, please get in touch if there’s anything more you’d like to see in The Acorn. If you like what you see, please like, subscribe and share to keep growing the Oak Investor community! 🌳
Thanks,
Gordon
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Summary 📝
Markets took a well earned breather last week after continuing to make all time highs, as another eventful week of data releases, earnings reports and breaking news moved stocks.
Bitcoin hit new all time highs again as sentiment in the crypto space improved, all before the ‘halving’ later in the year.
President Biden also delivered his State of the Union address, UK Chancellor Jeremy Hunt delivered the Spring Budget, and Nikki Haley suspended her presidential campaign, all but ensuring the US election in November will be another Biden Vs Trump run-off.
Market Summary
S&P 500 SPY 0.00%↑-0.14%
NASDAQ QQQ 0.00%↑-1.1%
Dow Jones Industrial Average DJIA 0.00%↑-0.63%
VIX Volatility Index +15.23%
At present, markets are pricing in a 97% chance of no change in rates at the next Fed meeting in late March, with a small 3% chance of a cut by 25BPS.
The Fear and Greed index slipped down to the Greed category at 67/100.
As I’ve said previously, this is an interesting time of year for the market, where seasonality suggests there may be good times ahead, but keep in mind that we’ve seen a bullish few months, which could mean we’re well overdue a negative month or two ahead!
As always, stick to your strategy, and make sure your money is working as hard as you are!
This Week in History 📰
Source- The History Place
March 12, 1999 - Poland, Hungary and the Czech Republic became full-fledged members of NATO (North Atlantic Treaty Organization).
March 15, 44 B.C. - Julius Caesar was assassinated in the Senate chamber in Rome by Brutus and fellow conspirators.
March 17th - Celebrated as Saint Patrick's Day commemorating the patron saint of Ireland.
What’s on my Watchlist? 👀
Three stocks I think have an interesting week ahead.
Not many companies report this week, but I think keeping an eye on COIN 0.00%↑, TSLA 0.00%↑ and ORCL 0.00%↑ is likely to be valid if you’re looking for volatility!
What’s Moving Markets? 🏃♂️
Three stories I’ve got my eye on this week. Sourced from CNBC.
Bitcoin hits fresh record high above $71,000 as UK opens the door to crypto exchange-traded products
The Financial Conduct Authority said Monday that it wouldn’t object to requests from recognized investment exchanges to create crypto-backed exchange traded notes, or ETNs.
Bitcoin’s price surged over 3% to $71,726.49 at around 4:30 a.m. ET, hitting a fresh all-time high. Ether climbed nearly 2%, to $4,014.90.
India inks ‘watershed’ $100 billion free trade deal with four non-EU nations
India will lift most tariffs on several sectors with Switzerland, Iceland, Norway and Liechtenstein in a free trade agreement.
New Delhi expects the agreement to generate $100 billion worth of investment over 15 years and 1 billion jobs in the world’s fifth-largest economy.
China’s annual parliamentary meeting has ended. Here are the key takeaways
China’s weeklong annual parliamentary meetings ended on Monday and for the first time in decades, the Chinese premier did not host a press conference.
President Xi Jinping did not speak at the closing ceremony.
Major Events This Week 🔬
Incoming Earnings Reports
Source- Savvy Trade
Catalyst Watch 🔥
Source- Seeking Alpha.
Monday - March 11
Volatility watch - Options trading volume is elevated on Enviva (EVA) and BigBear.ai Holdings (BBAI). The list of highly-shorted stocks heading into the new week includes Celsius Holdings (CELH) and Bowlero (BOWL). Execs with Celsius (CELH) will be presenting at the Bank of America Consumer & Retail Conference on March 12 and the UBS Global Consumer and Retail Conference on March 13. The most overbought stocks per their 14-day Relative Strength Index include Envoy Medical (COCH), EMCOR (EME), and Vistra (VST). The most oversold stocks per their 14-day Relative Strength Index include Pine Cliff Energy (OTCQX:PIFYF), Power & Digital Infrastructure Acquisition II (XPDB), and Inari Medical (NARI).
Earnings watch - Notable companies due to report include Oracle (ORCL), Casey's General Stores (CASY), and Asana (ASAN). Options trading implies big swings for Beachbody (BODI) and Hesai Group (HSAI) after they report.
All week - The one-year anniversary of the closure of Silicon Valley Bank by the California Department of Financial Protection & Innovation and the Federal Deposit Insurance Corporation will bring some attention back to the bank sector.
All day - Online sports betting launches in North Carolina. BetMGM (MGM) (OTCPK:GMVHF), DraftKings (DKNG), Bet365, Fanatics, FanDuel (FLUT), ESPN Bet (PENN), Caesars Entertainment (CZR), and Underdog Sports all expect to have sports betting apps live in the state to take wagers.
All day - AT&T (T), eBay (EBAY), fuboTV (FUBO), Fox Corporation (FOXA), and Warner Music (WMG) are scheduled to present at the Deutsche Bank Media, Internet & Telecom Conference.
4:30 p.m. - FTC lawsuit status conference on Albertsons (ACI)/Kroger (KR) deal.
Postmarket - The Nasdaq will release its latest update on short interest positions.
Tuesday - March 12
Earnings watch - Notable companies due to report include Archer-Daniels (ADM), On Holding (ONON), Kohl's (KSS), and International Game Technology (IGT). Options trading implies double-digit share price moves for Allbirds (BIRD) and Workhorse Group (WKHS) after their reports drop.
Healthcare watch - The healthcare sector will be on watch with both the Barclays 26th Annual Global Healthcare Conference and Leerink Partners Global BioPharma Conference running.
All day - Notable investor events include ACI Worldwide's (ACIW) Analyst Day, Instructure Holdings' (INST) Investor Day, Cisco Systems' (CSCO) Tech Talk, and appearances by a large range of companies at the J.P. Morgan Industrials Conference - including Delta Air Lines (DAL), Honeywell (HON), and Canadian Pacific Kansas City (CP).
All day - A block of shares of Arm Holdings (ARM) will roll off their IPO lockup period. In general, analysts think that post-lockup sales could be absorbed by the market, although the huge share price rally in the last six weeks has raised the stakes.
8:30 a.m. - The consumer price index report for February will be released.
9:00 a.m. - Karuna Therapeutics (KRTX) holders vote on Bristol-Myers (BMY) deal.
11:00 a.m. - Six Flags (SIX) holders vote on deal with Cedar Fair (FUN).
Wednesday - March 13
Earnings watch - Notable companies due to report include Dollar Tree (DLTR), Petco Health & Wellness (WOOF), Williams-Sonoma (WSM), and Lennar (LEN).
All day - Starbucks Corporation (SBUX) will hold its annual shareholder meeting, with a proxy fight for board seats with a prominent labor group appearing to be settled.
All day - Kraft Heinz (KHC) will show off its NotHotDogs and NotSausages plant-based products at the Natural Products Expo West show in Anaheim, California. The company is working with a joint venture partner to bring the plant-based Oscar Mayer products to retailers nationwide later in the year.
All Day - HSR refiling for Bristol-Myers (BMY) deal for Karuna (KRTX) set to expire; BMY set to speak at Leerink conference at 10am.
All Day - European Commission phase 1 review of Cisco's (CSCO) deal for Splunk (SPLK) expires.
All Day - Full U.S. House expected to vote on a bill that would force ByteDance to divest TikTok, or the app will be banned.
10:00 a.m. - MDU Resources Group (MDU) will hold its Analyst & Investor Day event.
11:00 a.m. - Juniper Networks (JNPR) will hold a Juniper Mist AI for Data Center for Tech Talk.
12:00 p.m. - Colgate-Palmolive (CL) management will participate in a fireside chat at the UBS Global Consumer and Retail Conference.
1:00 p.m. - Alteryx (AYX) holders to vote on sale to Clearlake.
Thursday - March 14
Earnings watch - Notable companies due to report include Dick's Sporting Goods (DKS), Dollar General (DG), Adobe (ADBE), Blink Charging (BLNK), and Ulta Beauty (ULTA).
All day - It is the FDA action date for Madrigal Pharmaceuticals' (MDGL) Resmetirom, which has been noted to have the potential to become the first and only medicine approved for NASH.
All day - Atmus Filtration (ATMU) will start trading after being spun off from Cummins (CMI).
All day - Notable investor events include Azenta's (AZTA) Investor Day and 8x8's (EGHT) Investor Meeting. Leonardo DRS (DRS) management will also host its investor day. The company plans to discuss its differentiated portfolio, strategic priorities, operations and growth outlook.
8:30 a.m. - The producer price index report for February will be released.
8:30 a.m. - The retail sales report for February will be released.
8:30 a.m. - Bristol Myers (BMY) set to speak at Barclays conference.
9:00 a.m. - Abbvie (ABBV) set to speak at Barclays conference. ABBV is in deal with Cerevel Therapeutics (CERE).
Friday - March 15
Earnings watch - Notable companies due to report include Jabil (JBL).
All day - The stock market could see extra volatility with triple witching day featuring the simultaneous expiration of stock options, stock index futures, and stock index options contracts.
All day - It is the last trading day before the FDA action date on OptiNose's (OPTN) Xhance treatment for chronic rhinosinusitis.
10:00 a.m. - The University of Michigan's consumer sentiment report will be released.
Seeking Alpha Editor Josh Fineman contributed to this story.
Chart of the Week 📈
Source- Chart of the Day
The 2024 tax season is in full swing, with some Americans already seeing refund checks hit their mailboxes or bank accounts directly.
As of mid-February, over 25.5 million taxpayers had submitted returns, with the average refund coming to $1,741, according to the IRS. In total, 67% of taxpayers say they expect a refund this year, a recent Bankrate survey found.
So what do Americans plan to do with that money? Nearly 30% of taxpayers receiving refunds plan to put theirs into savings, Bankrate found.
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Thanks for reading, have a great day!
Gordon
Disclosure ✅
This newsletter provides general information only. Before making any financial or investment decisions, please consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.
This report just keeps getting better every week Gordon!