1. It’s a new week but the recent stock market rally makes for a not-so-great set up as Jim Cramer told the Investing Club Monday evening in his weekly column. The Dow, the S&P 500 and the Nasdaq are under some pressure heading into the open of this holiday-shortened trading week. Despite slipping Friday, all three stock benchmarks posted solid weekly gains.
2. Jim and “Mad Money” are in Detroit for all things Ford (F) with CEO Jim Farley, covering everything from Ford Blue to Ford Pro to Ford Model e (electric vehicles). They’ll also talk about balancing legacy internal combustion engine vehicles (ICE) and EVs as well as the Club name’s supercharger partnership with Elon Musk and Tesla (TSLA).
3. Bank of America adds Club stock Amazon (AMZN) to its US 1 list. Keeps buy rating and $154-per-share price target.
4. Evercore ISI raises its price target on Club holding Nvidia (NVDA) to $550 per share from $500. The analysts think earnings per share (EPS) can get to around $30 in fiscal 2027 as its GPU-accelerated server platform increases from the mid-single digits today to 20%.
5. Yet another outlook cut in the bioproduction industry. Last Friday, Sartorius lowered its ex-Covid outlook from high single-digit growth to a high single-digit to low teen decline. Still too much inventory in the system. Adds more uncertainty to an already problematic group. But Cowen says that’s the wrong conclusion as Sartorious’ outlook was much higher compared to peers like Club name Danaher (DHR) as well as Thermo Fisher (TMO) and Regeneron (REGN).
6. Another biotech takeout. Club holding Eli Lilly (LLY) to acquire Dice Therapeutics (DICE) for $2.4 billion cash to boost its existing immunology portfolio. DICE shares soar nearly 38% on the news.
7. Notable analyst actions Tuesday: Palantir (PLTR) downgraded to outperform from strong buy at Raymond James; Avis Budget (CAR) upgraded to overweight (buy) at Morgan Stanley; Philip Morris (PM) upgraded to buy at Citi, and Delta Air Lines (DAL) added to the positive catalyst watch at Citi.
8. PayPal (PYPL) says it will spend $1 billion more on share repurchases this year.
9. Morgan Stanley warns that inventory challenges could weigh on Nike (NKE) margins and lead to an initial 2024 guide below Street. Yet the Dow stock is already prepped for it.
10. Club holding Humana (HUM) price target lowered to $585 per share from $620 at Barclays, keeps an overweight (buy) rating following last week’s comments that Medicare outpatient volume is running higher, causing full-year medical loss ratio (MLR) to be in the high end of the range.
(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)
As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
