Plus, Chipotle shares are up as the restaurant chain announces the addition of quesadillas to its digital menu, Target is launching a new private food label, Dick’s reported an earnings beat, and bitcoin again has a market cap of more than $1 trillion.
Stocks were higher at the open with the Dow rising 90 points, or 0.3%. The S&P 500 added 0.8%, while the Nasdaq surged 2.5%.
Tech stocks are surging higher today following a five-day losing streak, with Apple, Amazon, Microsoft, and Netflix all gaining around 3%, and Tesla surging more than 13%. The rebound came as the 10-year Treasury yield fell more than 6 basis points to 1.52% after rising as high as 1.62% on Monday. “A lot of these tech stocks have become oversold on a short-term basis,” said Matt Maley, chief market strategist at Miller Tabak. “Therefore, it’s not a big surprise that they’re seeing a nice bounce. The question will be whether this bounce is a strong one… or a ‘dead cat bounce’ that doesn’t last very long at all.”
The guac is extra. Chipotle shares are up 5% this morning after the restaurant chain announced that it is adding quesadillas to its menu nationwide. The catch? The cheesy items will only be available for digital orders as they take longer to make than Chipotle’s burrito bowls and tacos. Chipotle’s quesadillas will be available stating on Thursday and will be composed of a tortilla filled with Monterey Jack cheese and a protein of the customer’s choosing before being toasted in a new custom oven. Customers will also have a choice of three sides with their quesadilla, including fresh tomato salsa, sour cream, or guac for an extra fee. “We’re so excited to answer the call from fans and introduce one of the most highly anticipated menu items in our brand’s history,” Chris Brandt, Chipotle’s Chief Marketing Officer, said in a press release. “The Hand-Crafted Quesadilla brings so many new possibilities to our menu, and fans will love exploring fresh flavor combinations through its sides and salsa options.”
Target announced today that it is launching a new food and beverage brand focused on snacking and indulging called Favorite Day. The new private label will include more than 700 products including premium ice cream, bakery items, beverage mixers, mocktails, and cake decorating supplies, and will be available in stores starting in April. “We’re thrilled to build on Good & Gather’s success and the strength of Target’s food and beverage business by debuting our new owned brand, Favorite Day,” said Rick Gomez, Target executive vice president and chief food and beverage officer, in a statement. “Rooted in guest insights and developed by our talented Target team, Favorite Day is a sweet and savory addition that tastes amazing, makes life’s little moments of indulgence even sweeter and continues to differentiate Target’s owned brand portfolio.”
Dick’s Sporting Goods shares are down nearly 6% even as the retailer delivered an earnings beat. Dick’s reported fourth quarter adjusted earnings per share of $2.43 on revenue of $3.13 billion, compared to estimates for earnings per share of $2.28 on revenue of $3.07 billion. However, the company also forecast that sales trends are likely to slow as much as 2% this year, compared to same-store sales growth of nearly 10% in fiscal 2020. “We’ve never had a year quite like 2020. We were challenged in numerous ways, as were so many others, but as an organization we not only survived – we thrived, delivering record-setting sales and earnings,” said Ed Stack, Executive Chairman and Chief Merchandising Officer, in an earnings release. President and CEO Lauren Hobart added, “It’s clear that our strategies over the past several years are working and have set us up for long-term success. As we enter 2021, our business has so much momentum, and we have been pleased with our start to the year. Our focus in 2021 will center around enhancing our existing strategies to accelerate our core and enable long-term growth.”
And bitcoin’s market cap has again surged above $1 trillion as the digital currency gained more than 7% to $54,222, its highest level in two weeks as risk-on sentiment returns. The cryptocurrency first hit the $1 trillion milestone on February 19. Edward Moya, senior market analyst at Oanda, said “bitcoin and ethereum bullishness are back as more big-money bets keep flowing into cryptocurrencies. Institutional interest still seems strong.” However, Miller Tabak’s Maley said, “Bitcoin is unlikely to be a great ‘flight to safety’ play going forward. Instead, we feel that it is ore of a ‘risk-on/risk-off’ play. Therefore, if we see a deeper decline in the stock market, then we think that bitcoin will Miley see a decent decline.”
Stocks We’re Watching
Capri Holdings (NYSE: CPRI): Capri Holdings—the owner of luxury brands, Michael Kors, Versace, and Jimmy Choo—announced yesterday that it has appointed Alejandro Martinez-Galindo as Chief Information Officer. “I am incredibly excited to join Capri Holdings and look forward to helping implement the next generation of digital innovation at the Company,” Martinez-Galindo said in a statement. “Building on the dramatic increase in consumer engagement Capri’s luxury brands are currently experiencing, I believe there is a unique opportunity to accelerate this trend leveraging the convergence of technology and customer experience across all touch points. I am honored to have the opportunity to be a part of Capri’s journey in this mission.”