My top 10 things to watch Thursday, June 8
1. Weekly jobless claims 261,000 versus 235,000 expected. More support for the case for the Fed to pause interest rate hikes at next week’s meeting. Wall Street little changed heading into the open. As of Wednesday’s close, the Dow, the S&P 500 and the Nasdaq were modestly lower for the week.
2. Big theme in this market remains cybersecurity. The pecking order is Palo Alto Networks (PANW), which we own, next CrowdStrike (CRWD) and then Zscaler (ZS). Oppenheimer starts Zscaler, which offers a form of identity-theft blocking, with a $180-per-share price target. Zscaler preannounced better-than-expected earnings-per-share (EPS) so it is loved. PANW hit an all-time high Monday.
3. Barclays says the briefing documents around the FDA’s consideration of Biogen/Eisai anti-Alzheimer’s drug “appear benign,” with no real surprises. Setting the stage for full approval. The best way right now to play the promise of new Alzheimer’s treatments remains Club holding GE Healthcare (GEHC), which has the machines required to demonstrate the need for these drugs. Eli Lilly (LLY), also a Club name, is working through the U.S. regulatory process on its own Alzheimer’s drug.
4. Despite this positive development, GE Healthcare shares are down early after General Electric’s (GE) 25 million share secondary offer priced at $78, representing a 3% discount to Wednesday’s close. We think this pullback is a good opportunity to buy shares of GEHC, a leading medical imaging and diagnostics company.
5. Barclays boosts price target on Molson Coors (TAP) to $69 per share from $62. Keeps equal weight (holding) rating. Evercore ISI increases price target on TAP but lowers PT on Anheuser-Busch InBev (BUD), which has been hit by the Bud Light boycotts. Evercore keeps outperform (buy) ratings on both TAP and BUD. In beer, we own and like Constellation (STZ) and its unique Mexican brands Corona, Modelo and Pacifico.
6. Google is getting ready to crack down on employees not coming into the office enough, CNBC has learned. The Alphabet-owned company updated its hybrid work policy Wednesday, saying it will track badge swipes. Most employees are expected in physical offices at least three days a week. GOOGL is a Club stock.
7. Jefferies downgrades Wynn Resorts (WYNN) to hold from buy. Wynn remains a Club favorite despite China’s slower-than-expected recovery after the world’s No. 2 economy dropped Covid restrictions. Jefferies analysts say the upside once China gets going is well-understood by investors and baked into current stock levels. Price target on WYNN cut to $114 per share from $135.
8. Wells Fargo bumps up Home Depot (HD) price target to $345 per share from $325. Keeps overweight (buy) rating ahead of the home improvement retailer’s June 13 analyst day. Dow stock Home Depot took a hit last month after its biggest quarterly revenue miss in more than two decades and lower guidance.
9. GameStop (GME), the original meme-stock, swings 20% lower after the videogame retailer fired CEO Matthew Furlong and made major investor Ryan Cohen executive chairman. Furlong’s ouster comes after GameStop issued in March its first quarterly profit in two years.
10. Carvana (CVNA) raises outlook, sending the stock up around 20% in premarket trading. Surprising given the decline in used cars.
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