The Investing Club’s top 10 things to watch in the stock market Friday
The Club’s top 10 things to watch Friday, February 13 — Today’s newsletter was written by Jeff Marks, the Club’s director of portfolio analysis. 1. Stock futures were little changed this morning after the January consumer price index report came in a bit colder than expected. CPI rose 2.4% year-on-year, down from 2.7% in December and below expectations of 2.5%. Core CPI excluding energy and food rose 2.5%, meeting expectations, but down from 2.6% in December. 2. According to the Financial Times, President Donald Trump plans to roll back some tariffs on steel and aluminum. Shares of aluminum producer Alcoa, as well as U.S. steelmakers Nucor and Cleveland-Cliffs, also fell in premarket trading. 3. Applied Materials shares rose 10% this morning after the semiconductor equipment maker reported big sales and earnings growth and issued a strong outlook. Shares of Arista Networks, a rival of Cisco called Club, rose 8% after a better-than-expected quarter. 4. Dutch Bros. delivers fourth-quarter results that beat Street expectations; same-store sales rose 7.7% compared to expectations of 4.4%. We prefer Starbucks at the club, but Dutch Bros is also doing well as the Oregon-based coffee chain expands nationwide. 5. Bill Newlands is stepping down as CEO of Corona and Modelo brewer Constellations Brands, effective April 13. Nicholas Fink, chief executive of home products maker Fortune Brands Innovations and a member of Constellation’s board of directors, will replace Newlands as CEO. 6. DraftKings shares tumbled more than 15% after the sports betting operator offered a disappointing 2026 revenue outlook and failed to meet expectations for monthly users. The company faces competitive threats from prediction markets. 7. HSBC upgraded CrowdStrike Club to buy from hold and left its $446 price target unchanged. Analysts noted the cybersecurity company’s AI growth and the stock’s attractive valuation. HSBC argued that CrowdStrike “holds a leadership position in the mission-critical, high-growth cybersecurity space and has multiple avenues for expansion.” We have a buy-equivalent 1 rating on the shares in the club. 8. Wells Fargo upgraded to divest from Baird. Analysts said the risk/reward in bank stocks looks better after the recent selloff, with shares down more than 7% year-to-date. Still not attractive enough for fresh money. Baird kept his $85 price target unchanged. 9. While Coinbase’s fourth-quarter revenue slightly missed expectations due to the decline in crypto prices, it reported a net loss of $667 million. The profit figure fell as the value of the company’s crypto asset portfolio took a hit of $718 million. There was also a $395 million hit to strategic investments, including stablecoin issuer Circle. 10. Numerous quarterly reports in travel and leisure markets. Casino operator Wynn Resorts missed earnings yesterday. At the same time, Expedia beat the Street’s earnings expectations, but the online travel agency warned that “emerging AI-powered platforms” were a risk. Airbnb, meanwhile, offered upbeat revenue guidance, prompting Deutsche Bank to upgrade its stock. Sign up for free for my Top 10 Morning Thoughts on the Market email newsletter (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
