{"id":24720,"date":"2025-03-25T09:44:09","date_gmt":"2025-03-25T14:44:09","guid":{"rendered":"https:\/\/www.eoption.com\/mid-morning-look-march-25-2025\/"},"modified":"2025-03-25T09:44:09","modified_gmt":"2025-03-25T14:44:09","slug":"mid-morning-look-march-25-2025","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/mid-morning-look-march-25-2025\/","title":{"rendered":"Mid-Morning Look: March 25, 2025"},"content":{"rendered":"\n
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Mid-Morning Look<\/span><\/b><\/p>\n

Tuesday, March 25, 2025<\/span><\/b><\/p>\n\n\n\n\n\n\n\n
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Index<\/span><\/p>\n<\/td>\n

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Up\/Down<\/span><\/p>\n<\/td>\n

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%<\/span><\/p>\n<\/td>\n

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Last<\/span><\/p>\n<\/td>\n<\/tr>\n

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DJ Industrials<\/span><\/b><\/p>\n<\/td>\n

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69.59<\/span><\/p>\n<\/td>\n

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0.16%<\/span><\/p>\n<\/td>\n

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42,651<\/span><\/p>\n<\/td>\n<\/tr>\n

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S&P 500<\/span><\/b><\/p>\n<\/td>\n

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14.72<\/span><\/p>\n<\/td>\n

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0.25%<\/span><\/p>\n<\/td>\n

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5,782<\/span><\/p>\n<\/td>\n<\/tr>\n

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Nasdaq<\/span><\/b><\/p>\n<\/td>\n

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56.57<\/span><\/p>\n<\/td>\n

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0.31%<\/span><\/p>\n<\/td>\n

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18,245<\/span><\/p>\n<\/td>\n<\/tr>\n

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Russell 2000<\/span><\/b><\/p>\n<\/td>\n

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-8.52<\/span><\/p>\n<\/td>\n

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0.40%<\/span><\/p>\n<\/td>\n

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2,100<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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U.S. stocks are mixed to start the trading day, a far cry from the robust market open on Monday that saw all eleven S<\/span>&P sectors post strong gains paced by large cap tech and Smallcap Russell 2000 as investors digest another busy day of economic data and guiding the impact of upcoming April 2nd<\/sup> reciprocal tariffs on other countries. After an early bounce to highs of 4.37%, the 10-year Treasury yield has pulled back (after rising 8bps the day prior). Not much of a trading range for S<\/span>&P futures overnight, holding steady while Europe was higher, and Asia was mixed. Not a surprise, but consumer confidence data was weaker this morning (as been evident from recent AAII<\/span>, Fear\/Greed index) as the Conference Board survey on consumer sentiment fell for a 4th<\/sup> straight month and hit its lowest level since January 2021 (worse than the July 2022 period when inflation was 9%). Stocks got a boost Monday from more moderate comments from the Trump Administration on tariffs (targeted approach) which led to big move in cyclical stocks with Consumer Discretionary, Industrials, and Financials outperforming. As a result, Banks and Consumer Finance stocks acted very well with the BKX closing higher for the 7th straight session. <\/p>\n

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Economic Data<\/p>\n

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  • March Consumer Confidence index 92.9 (consensus 94.0) and down from 98.3 the previous month; Lowest level since January 2021; confidence expectations index dipped to lowest level in 12 years at 65.2.<\/li>\n<\/ul>\n<\/div>\n
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    • March Richmond Fed factory index -4; vs. est. +1 and Richmond Fed regional business conditions -14.0; prices paid up to +3.75% vs. +2.23% prior; shipments down to -7 vs. +12 prior; employment down to -1 vs. +9.<\/li>\n
    • U.S. Jan wholesale inventories unrevised at +0.8%; U.S. Jan wholesale sales revised to -1.5% (prev -1.3%) and U.S. Jan wholesale stock-to-sales ratio unrevised at 1.33.<\/li>\n
    • January 20-metro area home prices +4.7% (consensus +4.8%) from year ago vs +4.5% in December (previous +4.5%) — S&P CoreLogic case-Shiller; January home prices in 20 metro areas +0.5% seasonally adj (consensus +0.4%) vs +0.5% in December (previous +0.5%). US January 20-metro area home prices non-adjusted +0.1% vs -0.1% in December (previous -0.1%).<\/li>\n
    • U.S. single-family home sales reached an annualized rate of 676K units, slightly below the consensus estimate 679K and compared to January’s rate of 664K units; Feb home sales Northeast -21.4%, Midwest +20.6%, South +6.6%, West -13.6%; Feb new home supply 8.9 months’ worth at current pace vs Jan 9.0 months; median sale price for U.S. homes was $414,500, representing a 1.5% y\/y when the median price was $420,900.<\/li>\n<\/ul>\n

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       <\/span><\/p>\n\n\n\n\n\n\n\n\n\n
      \n

      Macro<\/span><\/p>\n<\/td>\n

      		\n

      Up\/Down<\/span><\/p>\n<\/td>\n

      		\n

      Last<\/span><\/p>\n<\/td>\n<\/tr>\n

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      WTI Crude<\/span><\/b><\/p>\n<\/td>\n

      		\n

      0.23<\/span><\/p>\n<\/td>\n

      		\n

      69.34<\/span><\/p>\n<\/td>\n<\/tr>\n

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      Brent<\/span><\/b><\/p>\n<\/td>\n

      		\n

      0.38<\/span><\/p>\n<\/td>\n

      		\n

      73.38<\/span><\/p>\n<\/td>\n<\/tr>\n

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      Gold<\/span><\/b><\/p>\n<\/td>\n

      		\n

      18.30<\/span><\/p>\n<\/td>\n

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      3,033.90<\/span><\/p>\n<\/td>\n<\/tr>\n

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      EUR\/USD<\/span><\/b><\/p>\n<\/td>\n

      		\n

      0.0012<\/span><\/p>\n<\/td>\n

      		\n

      1.0812<\/span><\/p>\n<\/td>\n<\/tr>\n

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      JPY\/USD<\/span><\/b><\/p>\n<\/td>\n

      		\n

      -0.92<\/span><\/p>\n<\/td>\n

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      149.77<\/span><\/p>\n<\/td>\n<\/tr>\n

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      10-Year Note<\/span><\/b><\/p>\n<\/td>\n

      		\n

      -0.004<\/span><\/p>\n<\/td>\n

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      4.327%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

       <\/span><\/p>\n

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      Sector Movers Today<\/p>\n

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      • In Consumer Finance: ALLY <\/span><\/b>was downgraded to Sell at BTIG, projecting that the company won’t meet its net interest margin (NIM<\/span>) and return on equity (ROE<\/span>) targets in the near term due to macroeconomic headwinds and increased competition. COF<\/span><\/b> was upgraded from Neutral to Buy at BTIG with $208 tgt saying i<\/span>f the merger fails with DFS, it thinks COF shares are worth $208. If the merger does go through, BTIG thinks COF shares are worth $427. BTIG’s positive view of Capital One regardless of the merger outcome.<\/li>\n<\/ul>\n<\/div>\n
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        • In Aerospace & Defense: UBS made several changes in European defense as upgraded Thales (THLLY<\/span><\/b>) and Saab (SAABY<\/span><\/b>) to Buy while downgrading Leonardo (FINMY<\/span><\/b>) to Neutral. UBS adopts a hybrid top-down and bottom-up approach to modelling defense company financials given the rapidly changing outlook and the scale of industry change underway. UBS believes the greatest opportunities are in quality defense stocks over value.<\/li>\n
        • In Utilities & Solar: OKLO<\/span><\/b> shares fell after posting a wider annual loss and noted that “significant” financial losses were expected into the near future. “We are an early–stage company with a history of financial losses, and we expect to incur significant expenses and continuing financial losses.” (the results\/cash burn weighed on other nuclear names VST<\/span>, CEG<\/span>, NRG<\/span>, TLN<\/span><\/b>); AEP<\/span><\/b> priced a 19.608M share Spot Secondary at $102.00. In solar, CSIQ<\/span><\/b> posted Q4 adjusted EPS loss (-$1.47) vs. est. loss (-$0.24); Q4 revs fell -11% y\/y to $1.52Bvs. est. $1.59B; Q4 Highest single quarter of e-STORAGE shipments to date at 2.2 GWh.<\/li>\n<\/ul>\n

           <\/span><\/p>\n

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          Stock GAINERS<\/p>\n

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          • BKX<\/span><\/b> +0.5%; looking to make it an 8th<\/sup> straight day of gains for banks<\/li>\n<\/ul>\n<\/div>\n
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            • CRWD<\/span><\/b> +4%; was upgraded to Buy from Neutral at BTIG saying the company has demonstrated its dominance in the core endpoint security target market.<\/li>\n
            • CVNA<\/span><\/b> +4%; was upgraded to Overweight at Morgan Stanley following with a price target of $280 (from $260) saying a sharp pullback in the share price presents a unique opportunity for investors to gain exposure to a leader in auto retail and fleet fulfillment.<\/li>\n
            • MBLY <\/span><\/b>+5%; after Volkswagen said it would collaborate with automotive parts suppliers Valeo<\/b> and MBLY<\/span><\/b> to develop better driver assistance systems for its cars<\/li>\n
            • NET<\/span><\/b> +3%; was double upgraded to Buy (from Underperform) at Bank America and raise PT to $160 from $60 citing differentiated AI offering, security momentum.<\/li>\n
            • UHS<\/span><\/b> +4%; along with gains in THC<\/span>, HCA<\/span><\/b> as Deutsche Bank recommended buying the sector (HCA<\/span>, THC<\/span>, UHS<\/span><\/b>) noting Healthcare facility stocks have been under enormous pressure both in the lead-up and post the election<\/li>\n<\/ul>\n

               <\/span><\/p>\n

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              Stock LAGGARDS<\/p>\n

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              • CCI <\/span><\/b>-3%; disclosed that Steven Moskowitz, President and CEO, has been terminated; Dan Schlanger, EVP and CFO, will serve as interim CEO, effective immediately. Schlanger will continue to serve as the Company’s CFO until April 1, at which time Sunit Patel will assume the role of EVP and CFO.<\/li>\n<\/ul>\n<\/div>\n
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                • KBH <\/span><\/b>-3%; reported a top and bottom line Q1 miss ($1.49\/$1.39B revs vs. est. $1.57\/$1.5B) and guided 2025 revenue in the range of $6.6B-$7B, down from its prior forecast of $7B-$7.5B but was close to in-line with Street ests $6.88B due to fewer new orders in the quarter.<\/li>\n
                • MURA <\/span><\/b>-53%; said it is stopping late-stage trials testing its experimental drug, nemvaleukin, with MRK’s<\/b> Keytruda, to treat ovarian cancer; says trial unlikely to meet main goal as interim analysis shows no significant improvement in overall survival in patients given the combo (10.1 months) vs just chemotherapy (9.8 months).<\/li>\n
                • OKLO<\/span><\/b> -6%; posted a wider annual loss and noted that “significant” financial losses were expected into the near future. “We are an early–stage company with a history of financial losses, and we expect to incur significant expenses and continuing financial losses”<\/li>\n
                • SAVA<\/span><\/b> -17%; said it will discontinue the development of its drug for Alzheimer’s disease.<\/li>\n
                • UNF<\/span><\/b> -12%; after CTAS<\/span><\/b> terminated discussions to acquire UNF<\/span><\/b> in a deal that valued the uniform supplier at $5.3 billion, sending UniFirst shares down. UniFirst had in early January rebuffed a takeover proposal from Cintas for $275 per share in cash and said it was confident of its strategy as a standalone company.<\/li>\n<\/ul>\n<\/div>\n

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