My top 10 things to watch Monday, July 10
1. The Dow, the S&P 500 and the Nasdaq are set for a mixed open after a weaker first week of July. The modest weekly losses came after a roaring first half of the year. Earnings start to really roll in this week. Club holding Wells Fargo (WFC) kicks off bank earnings on Friday.
2. The next hurdle for the market: key inflation data. The consumer price index for June is out Wednesday and the producer price index for June is out Thursday. My Sunday column examines sticky inflation and its impact on Wall Street and the Fed.
3. China is running to deflation. June wholesale prices there were unchanged and the core rate slowed to up 0.4% month over month. Annual producer prices sank 5.4% last month, a ninth-straight decline and the steepest since December 2015. Treasury Secretary Janet Yellen visited China as the U.S. looks to reset its relationship with the world's second-largest economy.
4. General Motors (GM) and Club name Ford (F) get price target raises at Barclays. Seems perfunctory. They seem like sell calls to me because they are talking about a high bar ahead of earnings. Ford reports quarterly earnings after the closing bell on July 27.
5. Goldman Sachs boosts price target on Club stock Nvidia (NVDA) to $495 per share from $440. The analysts see the artificial intelligence powerhouse embarking on a new era of growth. Nvidia reports its quarter on Aug. 23.
6. Club name Honeywell (HON) buys SCADAfence, an Internet of Things (IoT) cybersecurity firm. Terms not disclosed. Expected to close in the second half. Honeywell, which reports earnings on July 27, will fold this into its fast-growing software offerings.
7. Bank of America says Club name Amazon (AMZN) could see $12 billion gross merchandise value (GMV) for Prime Day. The 48-hour shopping event begins at 3 a.m. ET on Tuesday but early Prime deals have been going for weeks. Wolfe Research increases AMZN price target to $150 per share from $140. Keeps outperform (buy) rating.
8. Jefferies raises Tesla (TSLA) price target to $265 per share from $185 on deliveries. Keeps a hold rating but total catch-up call here. Tesla shares closed Friday at $274.
9. Rivian Automotive (RIVN) sees price target hike to $30 per share from $22 at Barclays. This will be an actual alternative to Tesla. The only real pure-play EV winner. Barclays keeps overweight (buy) rating.
10. Morgan Stanley increases Netflix (NFLX) price target to $450 per share from $350. Cites higher expectations and competitor withdrawals. This is why FANG and friends including Tesla never stop. When will people realize these are simply superior companies that are not going to be beaten at what they do? However, Morgan Stanley analysts keep equal weight (hold) rating.
(See here for a full list of the stocks from Jim Cramer's Charitable Trust.)
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