The Club’s top 10 things to watch in the stock market Friday
The Club’s top 10 things to watch Friday, July 24 – Today’s newsletter was written by Jeff Marks, the Club’s director of portfolio analysis. 1. Stocks are heading for a muted open following yesterday’s sell-off on rising oil prices and bond yields and concerns about aggressive AI spending by hyperscalers. This strong cross-current mix kept us from buying the dip. 2. Intel shares rose slightly after the Club chip maker reported a blowout quarter last night. The supply of data center CPUs cannot keep up with demand as artificial workloads increase the number of CPUs needed compared to AI accelerators (like Nvidia’s GPUs and Google’s in-house TPUs). Intel’s third-party foundry business is making progress, but there are no new customer announcements. Capital expenditures will increase significantly to meet demand. 3. Club name Nvidia and Amkor announced a $1.5 billion multi-year strategic partnership to develop advanced semiconductor packaging and testing technologies for next-generation artificial intelligence and accelerated computing. Amkor’s shares are up over 11% this morning. UBS upgraded Amkor to a hold buy. The price target increased from $80 to $90. 4. American Express reported a better-than-expected quarter. But as we heard from Club Capital One earlier this week, AXP is reinvesting its profits to fund growth opportunities. Shares fell after the company left its earnings per share outlook unchanged for the full year. 5. SLB shares rose after the oilfield services company beat analyst estimates on both revenue and adjusted EPS. Offshore activities in Latin America, Asia, Europe and Africa more than offset disruptions in the Middle East. The company’s data center solutions business is on track to exceed $1 billion in annual revenue by the end of the year. 6. Deckers Outdoor shares fell after reporting in-line sales, a penny increase in EPS and a small increase in the company’s full-year outlook. CEO Stefano Carot said he believes that despite the pressure on consumers, Hoka and Uggs will continue to gain market share thanks to their “compelling product line.” 7. GE Healthcare said CFO Jay Saccaro has resigned to take on a role outside the medical technology field. The maker of MRI machines also reported its first revenue in the second quarter, slightly above analyst estimates. The breakup of General Electric created tremendous shareholder value, but GEHC lags behind these three organizations. The real winners were GE Aerospace and Club name GE Vernova. 8. Citi placed Dell on “upside 90-day catalyst watch,” citing strong confidence in earnings momentum. Earlier this week, AI server maker Super Micro released strong preliminary numbers. Jim Cramer responded that if Super Micro is doing well, Dell must be doing great too. 9. Verizon reported a mixed quarter, with a loss in revenue but a small increase in earnings per share. The company slightly raised its full-year adjusted earnings outlook. According to FactSet, the net increase in postpaid phones was 184,000, above the 111,000 consensus. The stocks don’t do a lot of pre-marketing. Rival AT&T had a strong performance Wednesday morning, gaining 3.5% that day. 10. Oracle signed a 10-year, $7 billion software contract with the Department of Defense. The stock is up almost 2% this morning. If the gains continue, this would be Oracle’s 10th positive session since June 1. Shares have fallen over 50% during this period. 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.
