Top 10 things to watch Wednesday, June 28
1. Wall Street is set for a mostly lower open Wednesday, one day after a big rally that saw the S&P 500 gain nearly 1.2% and the tech-heavy Nasdaq jump almost 1.7%. The Dow, which gained less than 1% on Tuesday, broke a six-session losing streak.
2. Semis are getting crunched Wednesday morning after The Wall Street Journal reported that the U.S. government is considering new restrictions on AI chip exports to China. While Nvidia (NVDA) is down about 3.5% in early trading, we think that interest in the Club holding's chips away from China is so strong that the company's main problem is having enough supply to keep up with the demand.
3. Handful of price target bumps on Snowflake (SNOW) following the company's investor day. MoffettNathanson goes to $235 per share from $218, pointing out "green shoots of improvement in cloud volumes" based on the CFO's comments about a rebound in May and June and customer sentiment improving over the last 30 days.
4. Club name Alphabet (GOOGL) avoids a three-peat of downgrades. Oppenheimer comes to the tech giant's defense, citing a discounted valuation and conservative margin estimates among other reasons to be bullish.
5. General Mills (GIS) delivers better-than-expected adjusted earnings-per-share (EPS) of $1.12 but missed on sales of $5.03 billion. The company issues adjusted EPS guidance for full-year fiscal 2024 of between $4.47 to $4.55 versus $4.48 expected.
6. Following Tuesday's roughly 9% decline on a weak outlook, Walgreens Boots Alliance (WBA) catches a downgrade at Deutsch Bank to hold from buy and a price-target cut to $34 per share from $46. Barclays and JPMorgan are among other firms cutting their PTs on WBA.
7. Canaccord downgrades Regeneron (REGN) to hold from buy after the FDA issues a so-called Complete Response Letter for the higher dose of Eylea, which treats age-related macular degeneration. The letter requires a longer review than expected. Canaccord also catching up on its price target, cutting it to $720 per share from $953.
8. Pinterest (PINS) is upgraded to overweight from equal weight (buy from hold) at Wells Fargo ahead of a partnership with Club holding Amazon (AMZN). Analysts at Wells Fargo boost PINS price target to $34 per share from $23.
9. JPMorgan lowers Nike (NKE) price target to $146 per share from $152. Keeps overweight (buy) rating ahead of earnings.
10. Wolfe increases General Electric (GE) price target to $125 per share from $107 after getting positive vibes at the Paris Airshow for the company's aerospace unit. Keeps outperform (buy) rating.
(Jim Cramer's Charitable Trust is long NVDA, GOOGL, AMZB. See here for a full list of the stocks.)
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