10 things to watch Monday, June 17 Markets were indicated for a muted open Monday following a mixed session Friday that saw the S & P 500 and the Dow dip while the Nasdaq edge higher to close at another record high. For the week: The tech-heavy Nasdaq gained 3.2%, while the S & P 500 rose 1.6% and the Dow fell 0.5%. We’ll see if this Dow divergence continues. Two cooler-than-expected inflation reports despite a cautious Fed drove the largely bullish action last week. There are four economic reports of note this week. The market is closed on Wednesday for the Juneteenth holiday. Meanwhile, Citi upgraded U.S. stocks to overweight and downgraded European stocks to neutral. Club name Best Buy was upgraded to buy from neutral by UBS. The analysts raised their price target to $106 per share from $85. They see multiple paths to potential upside, like an AI-drive electronics replacement cycle and improvement in housing trends. Wedbush’s Ives increased his Microsoft PT to $550 per share from $500 on incrementally better AI customer checks. In a weekend commentary, we looked at how Microsoft, Apple and three other Club names are targeting consumers to make money with artificial intelligence. Toll Brothers was upgraded to neutral from sell by Goldman Sachs. Greater pressure on higher-end homes did not play out like the analyst had previously expected. Union Pacific was downgraded to hold from buy at Loop Capital. The analysts expect near-term weakness in volumes and operating efficiency. Activist Investor Starboard Value took a $500 million stake in Autodesk, according to The Wall Street Journal. Starboard wants changes to Autodesk’s board and is seeking actions to improve margins. There were several price target bumps on Micron ahead of earnings next week on June 26. Bank of America boosted its PT to $170 per share from $144. Nike price target was lowered to $114 per share from $116 at Morgan Stanley. The analysts kept their buy-equivalent overweight rating but think upcoming guidance could be below street expectations. Citigroup price target was increased to $66 per share from $63 by RBC Capital. The analysts maintained their buy-equivalent outperform rating ahead of the bank’s investor day later this week. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
10 things to watch Monday, June 17
Markets were indicated for a muted open Monday following a mixed session Friday that saw the S&P 500 and the Dow dip while the Nasdaq edge higher to close at another record high. For the week: The tech-heavy Nasdaq gained 3.2%, while the S&P 500 rose 1.6% and the Dow fell 0.5%. We’ll see if this Dow divergence continues.
Two cooler-than-expected inflation reports despite a cautious Fed drove the largely bullish action last week. There are four economic reports of note this week. The market is closed on Wednesday for the Juneteenth holiday. Meanwhile, Citi upgraded U.S. stocks to overweight and downgraded European stocks to neutral.
Club name Best Buy was upgraded to buy from neutral by UBS. The analysts raised their price target to $106 per share from $85. They see multiple paths to potential upside, like an AI-drive electronics replacement cycle and improvement in housing trends.
Wedbush’s Ives increased his Microsoft PT to $550 per share from $500 on incrementally better AI customer checks. In a weekend commentary, we looked at how Microsoft, Apple and three other Club names are targeting consumers to make money with artificial intelligence.
Toll Brothers was upgraded to neutral from sell by Goldman Sachs. Greater pressure on higher-end homes did not play out like the analyst had previously expected.
Union Pacific was downgraded to hold from buy at Loop Capital. The analysts expect near-term weakness in volumes and operating efficiency.
Activist Investor Starboard Value took a $500 million stake in Autodesk, according to The Wall Street Journal. Starboard wants changes to Autodesk’s board and is seeking actions to improve margins.
There were several price target bumps on Micron ahead of earnings next week on June 26. Bank of America boosted its PT to $170 per share from $144.
Nike price target was lowered to $114 per share from $116 at Morgan Stanley. The analysts kept their buy-equivalent overweight rating but think upcoming guidance could be below street expectations.
Citigroup price target was increased to $66 per share from $63 by RBC Capital. The analysts maintained their buy-equivalent outperform rating ahead of the bank’s investor day later this week.
Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free
(See here for a full list of the stocks at Jim Cramer’s Charitable Trust.)
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As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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