10 things to watch in the stock market Monday including a defense of Abbott Labs

Published Mon, Jul 1 20249:23 AM EDT

My top 10 things to watch Monday, July 1 Stocks are indicated higher Monday following a slight decline last week. That is despite the yield on the 10-year Treasury surging higher to about 4.44%; it was as low as 4.263% early Friday. Monday marks the first day of the third quarter. The top-performing Club stocks in the second quarter had one thing in common: the AI trade. Morgan Stanley hiked its price target on Nvidia to $144 from $116, citing strong demand for Hopper generation chips in Asia ahead of the launch of the company's next-generation Blackwell platform. Tesla was added to Wells Fargo's "Tactical Ideas List" with an underweight rating on declining delivery growth. Shares of the electric vehicle maker are up nearly 12% over the past month, but remain down around 20% year to date. Boeing will acquire troubled supplier Spirit Aerosystems for $37.25 per share. The all-stock deal has an equity value of $4.7 billion. Jefferies estimates the acquisition will be 1% dilutive to Boeing's 2026 earnings, but calls the benefits "priceless." Barclays thinks Club name Abbott Laboratories has shed too much market cap from baby formula litigation concerns and sees the potential for sentiment to improve leading into and following its trial set to begin next week. Analysts' baseline is a potential industry settlement between $500 million and $1 billion, but Abbott has lost nearly $30 billion in market cap since rival Reckitt's verdict in mid-March. We've been making a similar argument for months. Bernstein names a bunch of winners from the electricity needs of AI data centers, including Club holding Eaton, which has climbed 30% this year. The firm also calls out Quanta Services , Caterpillar , Cummins , GE Vernova and Vertiv . Raymond James raises its price target on Club name Meta Platforms to $600 a share from $550, arguing the social media giant's ability to monetize generative artificial intelligence is underappreciated despite rising capital expenditures. Deutsche Bank upped its price target on Walmart to $77 a share from $71. Analysts also kept their buy rating on the stock after meetings with management, which expressed confidence in its multiyear growth outlook. Goldman Sachs added Fox and Snowflake to its "Americas Conviction List," while removing Monday.com. While Fox has been a solid performer so far this year, Snowflake has been a major laggard. UBS upgraded Birkenstock to a buy rating from neutral with a $85 price target, up from $52. Analysts are upbeat on the sandal maker's direct-to-consumer expansion. 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.

My top 10 things to watch Monday, July 1

Stocks are indicated higher Monday following a slight decline last week. That is despite the yield on the 10-year Treasury surging higher to about 4.44%; it was as low as 4.263% early Friday. Monday marks the first day of the third quarter. The top-performing Club stocks in the second quarter had one thing in common: the AI trade.
Morgan Stanley hiked its price target on Nvidia to $144 from $116, citing strong demand for Hopper generation chips in Asia ahead of the launch of the company's next-generation Blackwell platform.
Tesla was added to Wells Fargo's "Tactical Ideas List" with an underweight rating on declining delivery growth. Shares of the electric vehicle maker are up nearly 12% over the past month, but remain down around 20% year to date.
Boeing will acquire troubled supplier Spirit Aerosystems for $37.25 per share. The all-stock deal has an equity value of $4.7 billion. Jefferies estimates the acquisition will be 1% dilutive to Boeing's 2026 earnings, but calls the benefits "priceless."
Barclays thinks Club name Abbott Laboratories has shed too much market cap from baby formula litigation concerns and sees the potential for sentiment to improve leading into and following its trial set to begin next week. Analysts' baseline is a potential industry settlement between $500 million and $1 billion, but Abbott has lost nearly $30 billion in market cap since rival Reckitt's verdict in mid-March. We've been making a similar argument for months.
Bernstein names a bunch of winners from the electricity needs of AI data centers, including Club holding Eaton, which has climbed 30% this year. The firm also calls out Quanta Services, Caterpillar, Cummins, GE Vernova and Vertiv.
Raymond James raises its price target on Club name Meta Platforms to $600 a share from $550, arguing the social media giant's ability to monetize generative artificial intelligence is underappreciated despite rising capital expenditures.
Deutsche Bank upped its price target on Walmart to $77 a share from $71. Analysts also kept their buy rating on the stock after meetings with management, which expressed confidence in its multiyear growth outlook.
Goldman Sachs added Fox and Snowflake to its "Americas Conviction List," while removing Monday.com. While Fox has been a solid performer so far this year, Snowflake has been a major laggard.
UBS upgraded Birkenstock to a buy rating from neutral with a $85 price target, up from $52. Analysts are upbeat on the sandal maker's direct-to-consumer expansion.

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.)

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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.