To The Moon

We have seen the market experiencing another selloff yesterday (25 Oct 2023), but there are still some stocks who are able to gather a Gap Up.

Here are the Top 5 stocks who has Gap Up from 0.9% to 5.7%, and in his article, I would like to look at how these stocks actually performed when there have been an increase in treasury yield.

And treasury yield went up further after last night (25 Oct) an auction of five-year notes showed weak demand and following data indicating that new-home sales accelerated in September, affirming market expectations of prolonged high rates heading into 2024.

The U.S. Treasury 10-year notes yield was up 11.5 basis points (bps) at 4.954%. On Monday, it actually hit more than 5%.

New home sales rebounded 12.3% to a seasonally adjusted annual rate of 759,000 units last month, as reported by the Commerce Department.

I will be looking at the stocks highlighted in blue after looking at how these 3 stocks traded after hours.

$Deutsche Bank AG(DB)$

Deutsche Bank has risen 7.36% on Wednesday after it posted an 8% drop in third-quarter profit, not as steep as analysts had expected, as revenue at the investment bank slumped but grew at the retail and corporate divisions on the back of higher interest rates.

The bank was slightly more optimistic on its revenue outlook for the full year, now anticipating around 29 billion euros.

Just one week ago, when yield was going up, Deutsche Bank share actually went down from 16 Oct to 20 Oct, before trading flat and start to pick up from 24 Oct to 25 Oct.

I would think investors might still be interested and optimistic on its revenue overall for 2023.

$MSA Safety(MSA)$

MSA Safety reports Q3 2023 net sales of $447 million, a 17% increase year-over-year and raises full year sales growth outlook to mid-teens.

It has a good gain of 7.11% before going flat in after hours trading. This might be due to investors are still grapping on its earnings result.

If we look at how this stock is trading when the yield is moving, it does not seem to have much volatile movement when yield went down or up. The only change we could see is when yield jump from 24 Oct to 25 Oct, MSA also rise, this could be due to the positive outlook of sales growth for 2023.

I would consider this stock for today (26 Oct) trading.

$Westinghouse Air Brake(WAB)$

Westinghouse Air Brake earnings per share have beaten estimate by coming in at $1.70 (excluding 36 cents from non-recurring items) . This is an improvement of 39.3% year over year owing to higher sales.

WAB has quite a good gain of 4.12% on 25 Oct trading and with a gap up of 1.6%, I would foresee a small gap up when trading start today.

This stock also does not really being affected by the movement in yield increase or decrease.

Summary

Based on these 3 gap up stocks, they are not very much affected by the increase in treasury yield nd there are some big tech earnings as well, but we do not see much gain, except for $Microsoft(MSFT)$ .

So we might need to be cautious when we approach the market today (26 Oct) as we are having $Amazon.com(AMZN)$ coming up after market today (26 Oct) as well.

Appreciate if you could share your thoughts in the comment section whether you think these 3 gap stocks would continue to produce some gains for us today (26 Oct).

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.