My top 10 things to watch Wednesday, June 26
- The S&P 500 and Nasdaq are seeking another positive day after snapping three-session losing streaks Tuesday. After a few days out of favor, Nvidia soared nearly 7% to help boost the indexes. However, the Dow's five-day winning streak came to an end Tuesday. Before we get the Fed's favorite inflation gauge on Friday, we will hold our Monthly Meeting for Investing Club members at noon ET on Thursday.
- FedEx reported a true blowout fourth quarter, sending shares surging nearly 14%. How did CEO Raj Subramaniam do it? Cost-cutting and rationalizing the business have been key. The delivery giant plans to buy back another $2.5 billion in stock this year, too. I'm wondering whether FedEx will sell its freight division, which trades at a discount.
- Electric vehicle startup Rivian Automotive got a $5 billion investment commitment from Volkswagen, de-risking the funding path. Rivian shares surged 35%. The alliance aims to create a next-generation EV architecture and software-defined vehicle tech. The initial $1 billion will be an unsecured convertible note.
- Citi raised its price target on Club stock Nvidia to $150 per share from $126 and kept its buy rating on the stock. Nvidia holds its annual meeting on Wednesday. High-flying shares have hit some recent turbulence. Investors will be watching CEO Jensen Huang to see what else he may have up his sleeve.
- Bank of America upped its price target on Club name Amazon to $220 a share from $210, arguing the e-commerce giant can make its delivery network even more efficient despite solid progress on that front in recent years. That can help increase profitability and add to the stock's 44% gain over the past year.
- Carnival delivered quarterly earnings and revenue beats, with strong outlooks for the current quarter and the full year. The stock jumped 8.7% on Tuesday afternoon after the news. Some of the highlights include cruise reservations out to 2026 and money per passenger soaring. The stock got multiple price target boosts on Wednesday.
- Southwest cut its revenue guidance and the stock sank more than 4.5%. The airline cited changing booking patterns. Southwest reported a wider-than-expected quarterly loss and worse-than-expected revenue.
- DA Davidson made a bold call on Home Depot, upgrading the stock to buy from neutral and boosting its price target to $395 per share from $352. The analysts see same-store sales bottoming and core margins stabilizing.
- Pool Corp shares dropped 8% Tuesday after the wholesale pool supplies distributor reported a disappointing quarter and lowered guidance. It sparked questions about other companies with ties to home improvement spending and the state of the housing market, more generally. Now the stock is down 22% for the year entering Wednesday's trading.
- Earnings after the bell Wednesday include Micron and Nike. TD Cowen cut its Nike price target to $89 per share from $91. The analysts, which kept their hold rating, said trends are getting softening. Micron got price target bumps on Monday.
Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free
(See here for a full list of the stocks at 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.
