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Investors are stepping up bets against a broad collection of stocks as the broader market gets increasingly volatile following another hotter-than-expected March inflation report . Stocks sold off and Treasury yields jumped Wednesday when inflation was shown to be under less control than investors had counted on. Unfortunately, the latest economic numbers suggest no need for the Federal Reserve to take its foot off the interest rate brakes. B. Riley Financial is also seeing large short interest, amounting to almost 76% of its float. Other stocks with high short interest include ImmunityBio and Sunnova Energy.
Persons: Stocks, SunPower, Riley Organizations: Treasury, Bank of America, BMO Capital Markets, CNBC, Federal Reserve, Riley, Riley Financial, Securities and Exchange Commission, Nomura, Sunnova Energy
Cooler-than-expected inflation data could push stocks higher, especially those that benefit the most from a decline in the cost of money. MGM stock has added more than 21% from the start of the year, while Caesars has climbed about 11%. Elsewhere, Solar Battery company SunRun also made the cut, and average analysts polled by FactSet/Refinitiv implies nearly 89% upside moving forward. Shares have pulled back more than 52% from the start of the year as higher interest rates pressure the overall solar sector . RUN YTD mountain SunRun stock.
Persons: Russell, SunRun Organizations: Labor Department, CPI, Dow Jones, Federal Reserve, CNBC, Treasury, MGM International, Caesars Entertainment, MGM, Caesars, Las, Solar Battery, FactSet, BMO Capital Markets, Dish Network, AES Corporation Locations: Las Vegas
Against this backdrop, hedge funds are placing larger bets by shorting a slew of stocks including C3.ai and U-Haul . In the event that the overall market sell-off stops, however, these stocks could also be in play for a short-squeeze and climb higher. C3.ai has one of the highest short-interest readings on the list of 39.2 million shares through Sept. 15, up from 35.9 million at the end of August. That's up from 7.8 million shares at the conclusion of August. Other stocks that made the list include Intercept Pharmaceuticals , which saw short interest climb 18% from the end of August to the middle of September to 12 million shares.
Persons: shorting, Guess, Italy's Alfasigma, Groupon Organizations: Dow Jones Industrial, Nasdaq, Intercept Pharmaceuticals
Against this backdrop, CNBC Pro used FactSet data to screen for stocks most vulnerable to a short squeeze. A short squeeze occurs once a shorted stock climbs higher, forcing investors who have short bets on shares to cover their positions. Novavax , meanwhile, has about 42% short interest from investors. Overall, short interest in the name increased 8.7% between June 15 and June 30. See below for the full rundown of potential short squeeze targets.
Persons: there's, Novavax Organizations: Nasdaq, Dow Jones, JPMorgan, CNBC Pro, New York Stock Exchange, Sunnova Energy Locations: Canada
Chart analysts tout the so-called golden cross pattern as an exceedingly bullish signal. A golden cross put simply is when a given stock's 50-day moving average crosses above its 200-day moving average. CNBC used FactSet data to screen for a tranche of stocks on the verge of signaling a golden cross pattern in the second half. Shares of conglomerate Honeywell International are approaching a bullish golden cross pattern. The stock's 50-day moving average sits at $75.79 compared to its 200-day moving average of $76.52.
Organizations: CNBC, Honeywell International Locations: Friday's
Stocks were rising ahead of this key event next week, with some gaining nice momentum that could build to a notable technical level. These stocks are still shy of the touted "golden cross," as their 50-day moving average has yet to surpass their 200-day moving average, which is seen as a harbinger of more upside ahead. Prudential Financial stock has steadily outpaced its 50-day moving average over the past five trading sessions in June. Shares last closed at $85.76 Wednesday, while the stock's 50-day moving average sits at $82.79. Meanwhile, the stock's Wednesday close of $36.22 sits comfortably above its 50-day moving average of $33.81.
Persons: Stocks, FactSet Organizations: Federal Reserve, CNBC, Prudential Financial, Fox Class, General Motors
The stock market is breaking out, and some individual names are on the verge of doing so, too. Given this backdrop, CNBC Pro screened the S & P 500 for stocks that are that have 50-day moving averages about to break above their respective 200-day averages. The stock broke above its 200-day moving average last month, and now its 50-day average is on the verge of doing the same. At the time this screen was run, Sherwin-Williams' 50-day moving average sat at $228.78 compared to its $229.66 200-day moving average. The stock is up about 20% this year, and analysts on average see it going up another 18% over the next 12 months.
Persons: Akamai, Sherwin, Williams Organizations: CNBC Pro, FactSet
Despite the uncertain macroeconomic backdrop the market faces, some companies have been able to buy back their shares without relying heavily on debt to finance the purchases. PYPL YTD mountain Shares of PayPal are under pressure this year with a decline of more than 15%. MPC YTD mountain Marathon shares are down roughly 8% from the start of 2023. Meta shares have been on fire this year as the company focuses on efficiency, rallying more than 100%. META YTD mountain Meta stock in 2023
Treasury yields dropped on the back of the report. More specifically, we looked at the rolling 100-day correlation between Nasdaq-100 stocks and the SHY ETF. Here are the five-most correlated Nasdaq-100 stocks to falling rates. Here are the five-most correlated Nasdaq-100 stocks to falling rates. Stock Chart Icon Stock chart icon Shares of Seagan are one of the more closely correlated stocks of the iShares short-term bond yield ETF.
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