Watch this hot semiconductor ETF and these emerging markets plays in tomorrow’s trading

MON, JAN 23, 2023

The goal of this newsletter is to get you ahead of the next day of investing and trading. It's your first look at tomorrow and last look at today powered by the team of people who direct CNBC TV's stock market coverage.

Tomorrow's Top CNBC Stories Tonight

Select energy stocks pop to new heights

Marathon Petroleum hit a new high Monday. It is up 9% in 2023.
Hess is just off a 52-week high, up nearly 10% in 2023.
Exxon Mobil is just 1.4% from a new high. The stock is up about 30% in six months.
Valero hit a new high today. Shares are up about 13% in 2023.

Rebuilding the chip trade

The VanEck Semiconductor ETF (SMH) soared more than 4% today.
It is up 17.3% in 2023.
Leading in 2023 is Nvidia, up 31%, and Taiwan Semiconductor, up 28.4%. ASML and Micron Technology are each up 23% this year, and Qorvo is up 20% in 2023.
KLA hit a high today. Shares are up about 13% in 2023.
At the bottom of the list this year: Analog Devices, up 3% in 2023, and Broadcom, up 4%. Texas Instruments shares are up 7% in this year. (TXN reports after the bell Tuesday).
Barclays had a positive note on the sector this morning.
Wells Fargo and Citigroup also have had positive notes on many of these stocks in the last 10 days or so.

Emerging markets roar in 2023

The iShares MSCI Emerging Markets ETF (EEM) is up 10.9% in 2023.
Seema Mody, who covers emerging markets, noted today EEM is now at its highest level since June.
The iShares China Large-Cap ETF (FXI) which tracks China's biggest stocks is up 16% in 2023.
The iShares Latin America 40 ETF (ILF) is up nearly 9% in 2023.
The iShares MSCI Mexico ETF (EWW) is up 16.5% this year.

EV stocks are charged up

Lucid is up about 12.8% today, but 77% off the 52-week high.
Nio is up roughly 9% today, but 54% off the 52-week high.
QuantumScape is up more than 6% today, but 63% off the 52-week high.
Tesla is up 7.7% today, but it's also 63% off the 52-week high.
EVgo up 17% today, but 56% off the 52-week high.
Blink Charging up 7.6% today, but 53% off the 52-week high.
ChargePoint up 7% today, but 43.5% off the 52-week high.
Wallbox is up 5.3% today, but 68% off the 52-week high.
Almost all these stocks have high Beta numbers, meaning they are significantly more volatile than the rest of the market.

Luxury retail and a reopening in China

Robert Frank who covers the sector will focus on the possibility that a reopening in China will lift a lot of the luxury stocks, which are already up recently.
A report last week showed most of the growth in these names was coming from a resurgence of sales in the U.S. and to some extent Europe. If you were to include China, which has been locked down, there may be more room for these stocks to grow.
Burberry (BBRYF) is up 18% in 2023.
LVHM (LVMHF) is up 17% in 2023.
Kering (KER-FR) is up 13% in 2023.
Richemont (CFRUY) is 16% in 2023.
Prada (PRDSY) is up 6.4% in 2023.
Ralph Lauren is up 20% in 2023.
Nordstrom is up 16% in 2023.

Lots of big companies are reporting results tomorrow

On the list, Verizon which is up 12% in three months but 28% off the 52-week high.
D.R. Horton is up 37% in 3 months but just short of the 52-week high hit last week.
Lockheed Martin is down about 3% in three months 11.5% off the 52-week high.
Raytheon is up nearly 9% in three months but 9% from the 52-week high.
Halliburton is up 19% in three months and 8% from the 52-week high.
Microsoft is flat in three months and 23% off the 52-week high.
Capital One is up 11% in three months and 33% from the 52-week high.