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Here's what CNBC TV's producers were watching as the Nasdaq Composite and S&P 500 extended their postelection rally, and what's on the radar for the next session.
Citigroup's Jane Fraser
- On Friday, the bank's CEO will be on with CNBC TV's Sara Eisen in the 10 a.m. hour, Eastern.
- Citigroup is up nearly 7% in four days. The stock is up 32% so far in 2024.
- The stock hit a high on Wednesday but is already 2.8% from that high mark.
- JPMorgan Chase, by the way, got a downgrade from Baird. Analyst David George thinks the stock will drop to $200, a roughly 15% decline from Thursday's close. Year to date, JPM is up about 39%. The stock also hit a high Wednesday but dropped 4.7% from that level.
- "We find that expectations are quite high, with the stock trading at ~2.6x [tangible book value], 15% cap to assets, over 14x 2026 [earnings per share] estimates, and ~10x [pre-provision net revenue] — all close or at all-time highs," Baird's George wrote in his research report on JPM. "We know we are fighting the tape here, but believe it makes sense to sell the stock."
IBM
- Arvind Krishna, CEO of the tech giant, is also on with Sara Eisen in the 10 a.m. hour.
- The stock is 10% from the mid-October high.
- IBM is up about 31% so far in 2024.
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Bonds and beyond
- DoubleLine's Jeffrey Gundlach was on CNBC TV's "Closing Bell" with Scott Wapner on Thursday, commenting on the Federal Reserve's quarter-point rate cut.
- Gundlach said about Fed Chair Jerome Powell after the cut: "He's gotten much more in sync with bond market by a movement of fed funds relative to two-years of 135 basis points of convergence in just, basically, two meetings. So, I really think that we probably have one more rate cut coming in December, because that would true up the fed funds rate with exactly where the two-year Treasury rate is right now."
- Gundlach cited concerns with the jobs market and the deficit. But said, "We believe that if we keep the price of oil around the low $70s — which there has been a lot of resistance down around $70 — we think we're going to see a headline CPI where Jay Powell can declare a victory."
- On bond investments, Gundlach recommended that investors stay at the intermediate part of the Treasury bond market.
- The 10-year Treasury note yield is at 4.34%. It was 4.42% right after the election results came in.
- The 2-year Treasury yield is at 4.21%.
- The six-month Treasury bill yields 4.42%.
- The three-month T-bill yields 4.55%.
- The one-month T-bill is yielding 4.59%.
- The SPDR Bloomberg High Yield Bond ETF (JNK) is yielding 6.53%.
- The iShares iBoxx High Yield Corporate Bond ETF (HYG) yields 5.87%.
- The iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) is yielding 6.73%.
- Fidelity's Corporate Bond ETF (FCOR) is yielding 4.14%.
- Gundlach's DoubleLine Total Return Bond Fund (DBLTX), which invests in a mix of fixed income, is yielding 4.96%.
NRG Energy
- The company releases its quarterly report Friday before the bell.
- The stock was up 4.3% on Thursday, hitting a new high.
- NRG is now up 86% so far in 2024.
Big moves
- The relative strength index, or RSI, is one metric traders and investors watch to track how fast and far a stock has moved. Anything above a 70 suggests a stock is overbought, while a result that's below 30 could mean it's oversold. These readings don't necessarily guarantee that a big move is imminent.
- After this recent run, 22 of the stocks in the Nasdaq 100 are in the overbought category.
- Booking Holdings is at the top of the list. The stock is up 3.6% week to date and up 18% in a month.
- Gilead Sciences is second. That stock Is up 9.4% in four days, and it's gained about 16% in a month.
- Five of the 30 stocks in the Dow Industrials are seen as overbought. Goldman Sachs is tops, followed by Visa.
- Goldman Sachs is up 12% in four days. Shares are up roughly 18% in a month.
- Visa is up 5.2% in four days. Shares are up 11.7% in a month.
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