💸 Stocks Set to Rally

Plus, what happened to Google's latest acquisition attempt?

July 23, 2024

Pencils down, it’s time for lunch. Here’s what you missed this morning:

  • 🟩 | Market Snapshot: All three major indexes rose slightly as investors await earnings reports from tech giants like Tesla and Google parent company Alphabet.

  • 🏠 | In focus: The National Association of Realtors reported that sales of previously owned homes dropped by 5.4% in June, marking the slowest pace of sales since December. Housing inventory also jumped 23.4% from a year ago.

  • 😬 | Noteworthy: The Philadelphia Federal Reserve’s nonmanufacturing index fell to a -10 reading for the month of July, the lowest level in more than a year and showing a sharp slowdown in services activity.

  • 💸 | The Midday Trade: Stocks Set to Rally. Scroll down for more.

Plus, discover how to potentially capitalize on Q3 earnings announcements with our sponsor’s free guide.

TOGETHER WITH NANOVIRICIDES

The success of penicillin led to an explosion in the development of antibacterials. But what about fighting viruses? One NYSE-traded biotech company, NanoViricides, Inc. (NYSE: NNVC), is on a solid footing to revolutionize the treatment of antiviral infections with game-changing antiviral nanomedicines. These drugs could be as revolutionary as antibiotics and do not rely on immune systems making them great for seniors and children! The company’s lead drug candidate NV-387 is aimed to treat RSV, Covid-19, Long Covid, Influenza, Bird Flu H5N1, and other respiratory viral infections.

See how NV-387 could be highly valuable for preparedness against novel viral epidemics and pandemics all while building shareholder value for NanoViricides, Inc. (NYSE: NNVC)!

STREET STATS

MORNING MOVERS

UPS: Shares of UPS plummeted after it reported Q2 earnings that showed a 30% drop in profits. Its stock is heading for its worst day ever (Investopedia)

KO: Coca-Cola’s shares rose after the company topped earnings estimates and hiked its full-year outlook as global demand rises (CNBC)

SPOT: Spotify’s stock surged following its report of Q2 results that showed record profits driven by successful cost-cutting measures (MW)

GM: General Motors’ stock tumbled despite reporting $4.4 billion in pretax profits and raising its full-year guidance (YF)

LMT: Lockheed Martin’s stock rose after raising its annual sales target due to an unexpected resumption of F-35 deliveries to the Pentagon (Reuters)

TOP CALLS

Sphere Entertainment: Benchmark Initiates Coverage On Sphere Entertainment with Hold Rating (Trade It)

TE Connectivity: Vertical Research Initiates Coverage On TE Connectivity with Hold Rating, Announces Price Target of $155 (Trade It)

American Airlines: Bernstein Downgrades American Airlines Gr to Market Perform, Lowers Price Target to $12 (Trade It)

Prologis: Argus Research Maintains Buy on Prologis, Raises Price Target to $135 (Trade It)

Symbotic: Vertical Research Initiates Coverage On Symbotic with Hold Rating, Announces Price Target of $45 (Trade It)

Spirit Airlines: Citigroup Maintains Sell on Spirit Airlines, Lowers Price Target to $2.75 (Trade It)

THE MIDDAY TRADE

Beating Expectations

Earnings season is upon us, and investors are looking for stocks poised to beat expectations and see an ensuing rally. Big names like Alphabet (GOOG), Amazon (AMZN), and Tesla (TSLA) are all set to report this week.

CNBC Pro, using Bespoke Investment Group data, has been looking for stocks reporting this week that have historically beaten expectations 75% of the time and saw at least a 1.5% gain the next day.

Chipotle

Chipotle (CMG), which has beaten earnings expectations 8 out of 10 times, made the list. Its stock typically jumps 1.8% on the day it reports. Despite recent social media backlash, the stock is up 18% YTD.

According to UBS (UBS), the fast-casual restaurant is primed for increasing foot traffic and strong sales through the rest of 2024. The investment bank has given the stock a $70 price target, a 30% increase from Friday’s close.

ServiceNow

ServiceNow (NOW) has beaten earnings estimates 90% of the time and tends to see 3.1% gains the day it reports, higher than almost all of the stocks that made the list.

According to Bank of America (BAC), it has the leading cloud platform for workflow automation and is trading at a good valuation. It has given the stock a $900 price target.

These stocks could be in for a solid boost over the next few days, which could give investors a quick return.

TOGETHER WITH NANOVIRICIDES

The success of penicillin led to an explosion in the development of antibacterials. But what about fighting viruses? One NYSE-traded biotech company, NanoViricides, Inc. (NYSE: NNVC), is on a solid footing to revolutionize the treatment of antiviral infections with game-changing antiviral nanomedicines. These drugs could be as revolutionary as antibiotics and do not rely on immune systems making them great for seniors and children! The company’s lead drug candidate NV-387 is aimed to treat RSV, Covid-19, Long Covid, Influenza, Bird Flu H5N1, and other respiratory viral infections.

See how NV-387 could be highly valuable for preparedness against novel viral epidemics and pandemics all while building shareholder value for NanoViricides, Inc. (NYSE: NNVC)!

SURVEY THE STREET

Last week, Google broke some big news that it plans to acquire Israeli cybersecurity Wiz for $23 billion.

Things have since changed. Wiz has ended the acquisition negotiations, and its CEO, Assaf Rappaport, announced the company will focus on an initial public offering and growing annual revenue to $1 billion.

This move came as a surprise to many, who believed the $23 billion acquisition offer was generous, considering Wiz was valued at just $12 billion during a funding round earlier this year.

Are you bullish or bearish on a Wiz IPO?

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Plus, Yesterday’s Poll + Results:

🟨🟨⬜️⬜️⬜️⬜️ Bullish 🛫 

🟩🟩🟩🟩🟩🟩 Bearish 🛬 

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