1. Last day of the month. Republican-controlled House vote on debt ceiling deal set for Wednesday night, a day after clearing Rules Committee. Democratic-controlled Senate to come. Monday default deadline.
2. Wall Street is set to open lower after the Nasdaq‘s third straight session of gains and its highest close since August. Back above 13,000. Powered by the recent buying spree in AI-related stocks like Club name Nvidia (NVDA), which briefly Tuesday traded above a $1 trillion market value. Very narrow rally in NVDA and fellow Club holdings Apple (AAPL) and Amazon (AMZN) as well as Tesla (TSLA). All dip early.
3. Citi says to “stay long” Nvidia. Keeps buy rating and $420-per-share price target. Bank of America boosts NVDA price target to $500 from $450. BofA analysts cite product announcements at a computer conference in Taiwan over the long weekend.
4. Marvell Technology CEO Matt Murphy on Mad Money says the chipmaker gets more and more orders every day for the plumbing needed for generative AI. Marvell (MRVL), a former Club stock, now in the Bullpen, will have 100% CAGR (compound annual growth rate). Marvell, like Nvidia, has had quite a run recently. Both are taking breathers. So is our other chip stock Advanced Micro Devices (AMD), which we trimmed Tuesday. Trimmed Meta Platforms (META). We still like both but prudent to take some profits after big rallies.
5. Price target increases for Microsoft (MSFT): Credit Suisse to $420 per share from $350 and Piper Sandler to $400 from $348. AI tailwinds could accelerate growth. Both research shops keep their buy-equivalent rating.
6. Bernstein raises price target on Amazon to $140 from $125. Keeps outperform (buy) rating. Lots of what the analysts call “untapped potential.”
7. Enrique Lores, CEO of HP (HPQ), calls the bottom in PCs on Mad Money. He says second half will be substantially stronger than the first. HP issued a quarterly revenue miss. Hewlett Packard Enterprise (HPE) also missed on revenue. Shares of both, which are separate publicly traded companies, are down big.
8. JPMorgan CEO Jamie Dimon in China for a conference tells Bloomberg that the uncertainty there is “somewhat” caused by the Chinese government. Is the government there in trouble? Do we have to trade as much with them? They don’t get the powerful Nvidia H-100 chip to run AI don’t forget. Tesla CEO Elon Musk visiting China, too, meeting with government officials there.
9. Manufacturing activity in China contracted in May more quickly than expected as post-Covid recovery in the world’s second-largest economy continues to falter. Oil prices sink on demand fears. So do oil stocks, including Club holdings Coterra Energy (CTRA), Pioneer Natural Resources (PXD) and Halliburton (HAL)
10. Target (TGT) and Kohl’s (KSS) going down. Kohl’s now has a Pride month problem after backlash on Target’s transgender-friendly swimsuit. Bud Light’s marketing campaign with a trans influencer had led to boycotts and increased sales at rival beer makers such as Club name Constellations Brands (STZ).
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