Top 10 Watchers for Friday, September 6 1. The S&P 500 is down for the fourth straight day after the highly anticipated August jobs report came in below expectations. Bond yields also fell in response to the report. 2. The U.S. economy added 142,000 jobs in August, below the 161,000 expected by Dow Jones. Meanwhile, the unemployment rate fell to 4.2% as expected. Job gains in the June and July jobs reports were also revised downward on Friday. Traders are about evenly split to choose between the traditional 25 basis point rate cut or a larger 50 basis point cut at the Federal Reserve’s policy meeting that ends on September 18. 3. Broadcom Weakness: Quarterly results beat expectations, but guidance was disappointing. Shares fell 7%. Before deciding on stocks, read our earnings flash report. Other businesses are showing signs of bottoming out. 4. Does the Justice Department want to break up Google? It seems that way, as the Alphabet company prepares to face a new antitrust trial starting Monday. Google lost the search trial, the second of which involves allegations over the company’s advertising model. I’ve been unhappy with Alphabet stock, but on Thursday I gave reasons to hold the line for now. 5. JPMorgan cut Supermicro Computer’s rating to “hold equivalent” from “buy.” Analysts said the fight isn’t worth it in the wake of the Hindenburg Research allegations. JPMorgan cut its price target on the AI ​​server company by a catch-up, lowering it to $500 from $950 a share to reflect the collapse of the once-high-flying stock. 6. Morgan Stanley started Eaton with an overweight “buy” rating and a $370 price target. Wolf Research raised the electrical parts maker’s stock to “hold equivalent” from “sell.” I think this is the stock most influenced by megatrends such as AI data center buildouts. I am looking at key buy levels for Eaton and two other club industrial stocks. This exercise follows a review of buy levels for four technology megacaps. 7. Stanley Black & Decker received an equal weight hold rating and a $107 price target from Morgan Stanley. It is being held in anticipation of a Fed rate cut. Fellow club member Honeywell also opened with a hold and a $210 price target. It doesn’t see much advantage and is down from the highs. 8. Morgan Stanley opened with an underweight sell rating and a $125 price target for Dow Jones Industrial Average stock 3M. Analysts expect continued softness in consumer spending, which could make full-year 2025 organic growth forecasts difficult to achieve. 9. Barclays has a high opinion of MicroStrategy, initiating the stock with a buy equivalent and a $146 target price per share. Analysts cite MicroStrategy’s unique business model that leverages cryptocurrencies. I think this is just a play on cryptocurrencies. Barclays changed cryptocurrency stock Coinbase and online trading platform Robinhood to hold from sell, saying both companies’ business models have matured. 10. The Financial Times reports that Intel is reeling from key departures, including Stuart Pan, who was named head of the foundry business in 2023. Shlomit Weiss, a key designer, also left in April. Combined with the stock’s decline, CEO Pat Gelsinger’s turnaround plan looks increasingly unfavorable. Sign up for my free email newsletter, Top 10 Morning Thoughts on the Market (see here for a complete list of Jim Cramer’s Charitable Trust stocks). Subscribers to Jim Cramer’s CNBC Investment Club get trade alerts before Jim makes any trades. Jim waits 45 minutes after sending a trade alert before buying or selling shares in the charitable trust’s portfolio. If Jim talks about a stock on CNBC television, he waits 72 hours after issuing a trade alert before executing the trade. The above Investment Club information is subject to our Terms of Use and Privacy Policy, as well as our Disclaimer. No fiduciary duty or liability exists or arises by receipt of any information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
Top 10 things to watch on Friday, September 6th
1. The S&P 500 has fallen for a fourth straight day after disappointing August jobs data, which also sent bond yields lower.
2. The U.S. economy added 142,000 jobs in August, below the 161,000 expected by Dow Jones, while the unemployment rate fell to 4.2% as expected. Job gains for June and July were also revised down on Friday. Traders were about evenly split on whether they expected a traditional 25 basis point interest rate cut or a larger 50 basis point cut when the Federal Reserve meets on Sept. 18.
3.Broadcom And the weaknesses: Quarterly earnings beat expectations, but guidance was disappointing. Shares fell 7%. Read our earnings flash before deciding what to do with the stock. Club Chipmakers performed worse than Nvidia. Artificial intelligence didn’t explode. Other businesses are showing signs of bottoming out.