My top 10 things to watch Tuesday, July 11
1. The Dow, the S&P 500 and the Nasdaq open higher Tuesday, one day after breaking three-session losing streaks. Small business optimism, according to the NFIB index, ticked higher but was below its long-term average for the 18th straight month in June. The main economic event of the week comes on Wednesday when the government issues its June read on consumer inflation.
2. The Nasdaq 100 index will be a "special rebalance" to address the overconcentration of Big Tech. It will happen before the opening on July 24. The move "will not result in the removal or addition" of any stocks, the Nasdaq said in a press release.
3. Club name Microsoft (MSFT) confirms new job cuts on top of announced downsizing in January that led to 10,000 layoffs. CNBC reports that salespeople and customer success representatives posted messages on social networks to announce they lost their jobs.
4. Citing AI opportunities, KeyBanc raises price target on Club chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD) and keeps overweight (buy) ratings on both. AMD to $160 per share from $150. NVDA to $550 from $500 on NVDA. In Monday's commentary, we examined Goldman Sachs' big estimate for what AI could mean for Nvidia over the next three years.
5. Club name Apple (AAPL) gets a price target bump at KeyBanc to $200 per share from $180. Analysts keep overweight (buy) rating. Good hardware numbers.
6. Evercore ISI likes Uber (UBER) over Club holding Meta Platforms (META) right here. The analysts make UBER their No. 1 long after META's big rally. Big cash flow.
7. Club name Amazon (AMZN) kicks off its 48-hour Prime Day shopping event. Signature Pick at Wells Fargo and tactical outperform at Evercore.
8. A jury in California is expected to begin deliberating Tuesday, one day after closing arguments in a case involving a 24-year-old man who says he developed rare cancer from exposure to asbestos in talc-based baby powder from Johnson & Johnson (JNJ), a Club holding. Facing many talc lawsuits, which we've cited as an overhang on the stock, J&J has consistently denied that its talc products ever contained asbestos or caused cancer.
9. TD Cowen lowers Target (TGT) price target to $166 per share from $200 but keeps outperform (buy) rating. Stiff price competition. The analysts lower estimates due to consumer spending concerns.
10. Zillow (Z) share gains. Macro looking good. Software could be increasingly important taking market share from brokers and budgets. Mortgage stable.
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