Top 10 things the Club is watching in the stock market Tuesday: Fed's Powell, Meta, obesity
The Dow, S&P 500 and Nasdaq are set to open slightly higher ahead of Fed Chairman Jerome Powell's testimony.
My top 10 Things to Watch Tuesday, March 7, 2007
The Dow, S&P 500, and Nasdaq will open slightly higher than Fed Chairman Jerome Powell's 10 AM opening. ET appearance before Senate Banking Committee. This morning, the yields on the 10-year and 2-year Treasurys are slightly lower. Powell will face round two on Wednesday before the House Financial Services Committee.
Meta Platforms' (META), "year of efficiency", set to continue: Bloomberg reports that job cuts could occur as soon as this week. This action would be in addition the 11,000 job reductions announced last November. Jim Cramer said Meta should do more layoffs.
- Air Products and Chemicals (APD) added to the tactical outperform list at Evercore ISI. The Club prefers Linde (LIN). Evercore raised its price target on Linde to $375 per share from $355. LIN has outperformed APD by about 16% since earnings, and it would not surprise us to see APD play a little catch-up here.
Goldman begins coverage of the networking equipment group. They are fond of Juniper Networks and Arista Networks. Neutral on Club holdings and Dow stock Cisco Systems Cisco Systems (CSCO), and F5 (FFIV).
Club holding Amazon (AMZN), is Goldman Sachs' top Internet pick for the remainder of 2023.
Rivian Automotive (RVIN) sinks after announcing plans to raise $1.3 billion in green convertible notes.
Delta Airlines (DAL) upgraded to overweight at Evercore ISI after lagging peers. Analysts there say recent pilot contract ratification lowers the airline's cost outlook.
Loop Capital's survey says Netflix (NFLX) charging for password sharing will more than offset the loss of subscribers. Loop increases price target to $330 per share from $320.
Dick's Sporting Goods' (DKS), moving higher after reporting quarterly earnings-per share and same-store sales beats. The 2023 EPS outlook is $12.90 to $13.80, which is well above the $12 estimates.
- WW International (WW) is higher after announcing deal to acquire the anti-obesity-focused telehealth provider Sequence. The deal highlights the attention the anti-obesity market is gaining through the rise in use of Eli Lilly 's (LLY) Mounjaro (off-label and ahead of regulator approval for weight loss) and Novo Nordisk 's (NOV) Wegovy (already on the market for weight loss). The drugmakers are the better way to play this emerging opportunity. There are way too many telehealth providers and it will be difficult for WW to differentiate.
(Jim Cramer's Charitable Trust is long META, LIN, CSCO, AMZN, LLY. See here for a full list of the stocks.)
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