Watch these potentially overbought consumer stocks and Las Vegas Sands in tomorrow’s trading

WED, APR 19, 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

Las Vegas Sands surges in after-hours trading

Las Vegas Sands is higher in the extended session after topping analysts' estimates on earnings and revenue. The company also smashed estimates for its Macao properties in an early look at how China's reopening and Covid recovery could benefit travel and leisure names exposed to Chinese tourism. Casino names have been outperformers this year, with Las Vegas Sands up 23% in 2023 at today's close, Wynn up 36%, and MGM up 33%. All of those stocks were also trading higher in the extended session, plus Melco Resorts and Caesars, and Las Vegas Sands is on pace to open at a 52-week high.

SL Green adds to its Wednesday gains

It was a relatively strong day for the hard-hit office REIT group. SL Green has extended some of those gains after hours. The company reported revenues that topped analysts' estimates, according to Refinitiv. SL Green also reiterated its goal of increasing occupancy in Manhattan by December, potentially bucking some recent concerns over the office landscape. Outside of SLG, names like Vornado Realty Trust, Douglas Emmett and Kilroy Realty were also firmly in positive territory, all up more than 4% today. All of those names are 15% or more off their late-March lows but still deep in negative territory for the year.

Abbott Laboratories surges on quarterly results

Abbott Laboratories posted its best day since August 2020 after an earnings and revenue beat. The company cited a recovery in elective surgeries and routine diagnostic testing as people re-focus on areas of health outside of Covid-19. Today's gains put the medical devices giant into positive territory for 2023, though it remains around 10% off its recent high.

Ethan Kraft | CNBC Stocks & Markets Editor
@ethan_kraft

Potentially overbought consumer product stocks

These stocks have a Relative Strength Index number — or RSI — that indicates the stock is overbought. An RSI is one of several factors a trader might use to decide if a stock is too hot. Anything over 70 is generally considered "overbought."
Coca-Cola is up 6% in a month and has an RSI of 73.
McDonald's reports quarterly results next Tuesday. As we've reported in this note, it seems to hit a high every day. The stock is up 9% in a month with an RSI of 80.5.
Chipotle is up 20% in three months and had an RSI of 75.
Molson Coors is up 15% in a month, with an RSI of 75 also.
Kimberly-Clark is up 10% in a month and has an RSI of almost 73.
Thanks to CNBC's Nick Wells for the idea for tonight's stock note.

Medical devices

The iShares U.S. Medical Devices ETF (IHI) is up 10% in the past month and up nearly 3% today.
Intuitive Surgical was up about 11% today, jumping after its quarterly report issued late Tuesday. The stock hit its highest level in a year. Shares are now up 25.5% in a month.
Abbott Labs up close to 8% today. Shares are up nearly 16% in a month.
Every stock in the IHI is up in April, except for Waters and Glaukos.

The Great American Consumer

While most of the financial institutions to report so far have been relatively upbeat on consumer spending, or neutral, Ally executives said today on the company's earnings call that delinquency rates were elevated versus expectations. They also said that tax refunds have been slower this year, that consumers are under pressure and that the bank would pull back on new loans. Executives also said they expect more delinquencies. Thanks to CNBC's Harriet Taylor, senior producer, consumer business, for the research.
The Consumer Staples Select Sector SPDR Fund (XLP) is up 5% in a month. That places it sixth out of the 11 main sector ETFs covering the S&P sectors.
The Consumer Discretionary Select Sector SPDR Fund (XLY) which covers consumer discretionary is the 7th out of 11 in the last month, up 4.7%.
Tops in the consumer staples sector in the past month are Archer-Daniels-Midland up 10.3%, Estee Lauder up 9.4% and General Mills up 9.2%. At the bottom of the sector are Kroger and Campbell Soup, up about 1.5%. J.M. Smucker is roughly flat for the past month.
Tops in the consumer discretionary sector in the last month are PulteGroup, AutoZone and Chipotle, all of which are up more than 12% in the past month. At the bottom of the sector are Bath & Body Works, GM and Caesars, all up in the 3% range.

The banks in April

So far this month, the banking industry is leading all other S&P industry groups.
Despite a lot of worry coming in, the banks are up 6.9% in April. Meanwhile, homebuilding is up 4.8%.
Wells Fargo leads the way in April, up 13%. Zions Bancorporation ranks second up 9.3%, followed by Comerica, up about 8.5%.
At the bottom of the bank list: KeyCorp and U.S. Bancorp. Both are down slightly in April.