My top 10 things to watch for Tuesday, November 7
- Wall Street should open lower after the Nasdaq had its first seven-game winning streak since January. THE Dow and the S&P500 were up for six days in a row. Heading into Tuesday’s trading, the S&P 500 short-term oscillator, which I have trusted for decades, remained overbought. (We planned Club members will benefit from an Oscillato agreementr.)
- Bond purchases continue, pushing yields lower. Tamer gives in after the Cash flow at 10 years recently exceeded 5% supported this race for stocks. Oil prices in the United States are down 2% below $80 per barrel. Mixed economic data from China offsets extended production cuts from Saudi Arabia and Russia. Natural gas flows almost 4%.
- Club name Coterra Energy (CTRA) Posts Higher Quarterly Profit and Increased Guidance. Very solid numbers for natural gas for the quarter ended September 30. Coterra is 50/50 natural gas and oil. Slight loss in overall revenue in the third quarter. But it remains a strong cash flow generation thanks to better than expected production.
- Club name Emerson Electric (EMR) fell more than 5.5% early Tuesday after the industrial automation company missed its fourth-quarter fiscal 2023 earnings and revenue. Adjusted earnings forecast for fiscal first quarter 2024: $1 per share to $1.05, below estimates by 2 cents on the low end.
- Wells Fargo says it’s time to buy the club name Human (HUM), whose title has fallen significantly. Raised price target to $592 per share from $541. We love this call. Humana is one of three stocks we’re considering buying more of.
- Barclays takes Corona and Modelo beer maker Constellation Brands (STZ) to $293 per share, from $280. The road has been difficult and the Analyst Day was considered disappointing because nothing strategic was announced.
- Uber (UBER) bookings look good in the third quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) $1.09 versus $1.02 expected. Revenue of $35.2 billion also beat estimates.
- We work (WE) is pre-packaged and is unlikely to put pressure on the commercial real estate sector. We still don’t know who owns the bad properties. But it doesn’t appear to be Vornado (VNO) or SL Green (SLG). Once valued at $47 billion, WeWork files for bankruptcy.
- RBC Capital launches Home deposit (HD) and Lowe’s (LOW) with outlets. Very unusual because we usually like one. Barclays Lowers HD Price Target, Says It Could Miss Quarter. Home Depot reports its results on November 14. Lowe’s results will be released on November 21.
- Oppenheimer hikes Walmart (WMT) price target at $185 per share from $175. Analysts see widespread demand. WMT releases its quarterly results on November 16.
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