Top 10 things to watch Monday, March 6
1. The Dow, the S&P 500 and the Nasdaq are indicated to open modestly higher Monday, following last week's gains and the single best sessions Friday since early 2023. Treasury yields are backing off slightly, while oil prices are lower in response to China setting its GDP growth target to around 5%. Natural gas prices are off nearly 13% early Monday. Big week ahead: Fed Chairman Jerome Powell on Capitol Hill on Tuesday and Wednesday in advance of this Friday's February employment report.
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2. Morgan Stanley's Adam Jonas raises his price target on Ferrari (RACE) to $310 per share from $280. Names Ferrari his new top pick replacing Tesla (TSLA). Keeps overweight (buy) rating. Jonas says Ferrari is the most defensive stock in his coverage. He has 12 underweight (sell) ratings to six other overweight (buy) ratings. Likes Ferrari's long order backlog, earnings visibility, and pricing power. Separately, Tesla cut prices again on most expensive models in the U.S.
3. JPMorgan says it's time to temper enthusiasm for homebuilders as the housing market absorbs the recent increase in mortgage rates. Downgrades D.R. Horton (DHI) to neutral (hold) and KB Home (KBH) to underweight (sell) rating. But analysts still have overweights (buys) on both PulteGroup (PHM) and Toll Brothers (TOL).
4. Jefferies is very selective on drug stocks. Analysts like Merck (MRK) as top pharma pick. But neutral (hold) on Bristol Myers (BMY) and Club holding Eli Lilly (LLY), which they say is priced to perfection at $300 per share. Pfizer (PFE) started with a neutral (hold) rating.
5. Club holding Emerson Electric (EMR) upgraded back to a buy rating at UBS. Analysts there previously downgraded EMR to neutral (hold) on Jan. 4. UBS is still critical on the potential National Instruments (NATI) buyout, which went hostile. But UBS argues the loss of market cap at EMR of $10 billion "seems excessive" for an $8 billion deal.
6. Apple (AAPL) initiated with a buy rating at Goldman Sachs. Price target of $199 per share. That's an over 30% premium to Friday's close. Shares are up 16% year to date. The stock lost 27% in last year's rough market.
7. Jefferies downgrades RH (RH), formerly known as Restoration Hardware, to hold, price target to $298 per share on concerns the luxury market is struggling to stabilize.
8. Bank of America recommends Club holding Nvidia (NVDA). Calls the chipmaker top cloud pick with a $275-per-share price target, ahead of multiple catalysts.
9. General Electric (GE) coverage transferred at JPMorgan, which maintains neutral (hold) rating but increases price target to $88 per share. BofA increases its GE price target to $96 from $92 and keeps buy rating ahead of Thursday's investor day.
10. Silvergate Capital (SI) downgraded to underperform from neutral (sell from hold) at Wedbush. Price target cut to $4 per share from $9. The downgrade comes after the crypto company discontinued its Silvergate Exchange Network on Friday.
(Jim Cramer's Charitable Trust is long LLY, AAPL, NVDA, EMR. See here for a full list of the stocks.)
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