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🩳 The Most Shorted Stocks
Plus, this state has the most real estate agents.
Happy Tuesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟨 | US stocks were mixed Tuesday. The S&P 500 dipped in anticipation of the Federal Reserve's upcoming interest rate decision tomorrow at 2 pm EST.
📈 | One Notable Gainer: Sanmina's stock jumped over 28% after reporting first-quarter earnings and second-quarter guidance that beat expectations, with $1.30 earnings per share and $1.87 billion revenue.
📉 | One Notable Decliner: United Parcel Service's stock fell 8% following a report of lower-than-expected fourth-quarter revenue and future guidance.
🐂 | Tomorrow's Trade: Bulls Among the Bears. Scroll down for more.
Plus, build wealth by owning home equity investments in the nation's top cities.
YESTERDAY’S POLL RESULTS
🟨⬜️⬜️⬜️⬜️⬜️ Fanatics
🟨⬜️⬜️⬜️⬜️⬜️ Amer Sports
🟨🟨🟨⬜️⬜️⬜️ Shein
S&P 500 Heatmap. Credit: Finviz
All stocks on US exchanges. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
GM: General Motors' stock rose 7.8% after exceeding Wall Street's forecasts and issuing strong 2024 guidance, with robust fourth-quarter earnings and revenue.
BAC: Bank of America's shares gained 3.5% following Morgan Stanley's upgrade to overweight, citing a "bright" future for the banking sector.
JBLU: JetBlue Airways' stock dropped over 4% after the airline reported a fourth-quarter loss and announced plans to reduce capacity in 2024 to regain profitability.
WHR: Whirlpool's stock fell 6.6% following lower-than-expected full-year guidance, overshadowing its strong fourth-quarter performance.
NUE: Nucor's stock rose shy of 7% after fourth-quarter earnings beat estimates and the company predicted stronger demand and higher earnings in the first quarter.
TOGETHER WITH CBOE
OVERHEARD ON THE STREET
CNBC: The International Monetary Fund upgraded its global growth forecast for 2024 by 0.2 percentage point, to 3.1%.
Forbes: UPS announced plans to cut 12,000 jobs following a fourth-quarter earnings shortfall.
Policy Genius: Nearly half of American adults (46%) expect that if they died today, their loved ones would inherit their debt.
ET: Elon Musk predicts a future with 1 billion humanoid robots by the 2040s.
The Information: Two weeks after its CEO's promise to "shock the world," PayPal has started company-wide layoffs.
TOMORROW’S TRADE IDEA, TODAY
Shorting Data Amidst Market Highs
The market has been hot lately. The S&P 500 and the Nasdaq closed at a high for six straight trading days ending on Thursday.
Despite these gains, led mostly by tech stocks, there are a handful of hedge funds betting on price drops within other sectors. Hedge funds are closely watching the retail and auto manufacturing spaces, specifically.
Betting Against Some Big Names
CNBC came out with a list of the most heavily shorted stocks. It included stocks with at least $100 million market capitalization and short interest of at least 25% of available shares.
Several well-known companies made the list, including Groupon (GRPN), Carvana (CVNA) and Beyond Meat (BYND).
Groupon finds itself with short interest at 38.5% of its float. Carvana and Beyond Meat come in at 35.7% and 38.8% respectively.
Biggest Movers
Some stocks on the list have seen short-interest percentages rise more sharply than others.
EV manufacturer Fisker (FSR) saw its short interest rise 12%, bringing the short interest percentage up to 53% of the available shares. The company’s shares are down more than 54% this year.
B. Riley Financial (RILY) tops the list at 63.9% of its available shares being shorted.
Rising stocks aren’t immune to short sellers. Savers Value Village (SVV) has seen a 3% increase in short interest despite its stock price increasing 4.8% this year.
Hedge funds are making moves, but it’s up to the individual investor whether or not they’ll follow suit.
Which stock do you think will surprise short sellers? |
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ON OUR RADAR
CNBC: Elizabeth Warren and three other Democrats requested Fed Chair Jerome Powell to lower interest rates at the next meeting to boost affordable housing.
Axios: Florida leads U.S. states in the proportion of real estate agents, with about three in every 1,000 workers in the field.
Bloomberg: JPMorgan strategists warned of a potential U.S. stock selloff, likening the top 10 stocks' 29.3% share in the MSCI USA Index to the dot-com bubble era.
BI: One thing keeping home demand — and prices — up is that there are a lot of millennials trying to buy.
Euronews: The eurozone economy saw no growth in the final quarter of 2023, with a 0.1% annual increase and a 0.1% decline from the previous quarter.
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