The Club’s top 10 things to watch in the stock market on Thursday
Club’s 10 things to watch on Thursday, June 25 1. The technology-heavy Nasdaq will rally today, led by semiconductor stocks after memory chipmaker Micron said supply could not keep up with growing AI-fueled demand. S & P and Dow futures are also positive, but to a much lesser degree. The US WTI crude benchmark is hovering below $70 a barrel. 2. Micron is up over 16% this morning after another monster quarter. Earnings per share (EPS) of $25.11 beat analyst estimates of $20.86. August quarter guidance: EPS of $30 to $32 vs. $25.72 expected. The company expects strong conditions to continue through the 2027 calendar year, and said it does not see when supply will catch up to unsustainable demand. It also signed 16 strategic supply agreements with a specified price (fixed or below floor and ceiling) to provide visibility. 3. Qualcomm is up nearly 10% after it unveiled earnings targets on its investor day. The chip maker raised its 2029 non-handset revenue target to $40 billion, nearly double its previous target from its 2024 investor day. The biggest boost comes from the new AI data center infrastructure strategy, which is targeting more than $15 billion in fiscal year 2029. It announced a multi-year deal with Meta to supply data center CPUs. 4. The club name Intel was started with a holding rating at Goldman Sachs and a price tag of $150. Analysts believe in the agency’s AI story and see the opposite in the company’s role as a “US champion” for its innovation (manufacturing) business. However, they think that the stock, which has more than tripled this year, reflects these storms and chooses Nvidia , Broadcom , and AMD with better revenue performance. We own Nvidia and Broadcom. 5. All major banks have passed the Federal Reserve’s annual stress tests. It’s not the same thing as before, but it allows big banks to return more money to shareholders. JPMorgan raised its quarterly dividend to $1.65 from $1.50 and approved a new $50 billion share buyback program. Club name Goldman Sachs increased its dividend to $5.50 from $4.50. 6. Wall Street firm Jefferies released its second quarter earnings report with slightly below estimates. Asset management costs and return on investment are down 35% year over year. That segment ran into trouble last year with exposure to auto parts supplier First Brands. On the bright side, Jefferies’ investment banking revenue grew 57% year-over-year, thanks to the growth in business that Goldman Club’s name dominated this year. 7. Darden Restaurants reported fiscal Q4 earnings of $3.66 per share, a 3-cent beat. Total comparable store sales rose 4.6% versus 4.1% expected. Olive Garden was softer than expected, but LongHorn Steakhouse’s comps were strong. Fiscal year 2027 EPS guidance was light, which helps explain why the stock is down 3% this morning. 8. Spice maker McCormick beat on revenue and adjusted EPS of 80 cents above estimates of 70 cents. Organic sales growth of 1.7%. The company, which also owns Frank’s RedHot and Cholula brands, reaffirmed its full-year adjusted EPS outlook. Shares rose less than 1% of the market. 9. Shares of Google parent Alphabet fell more than 1% this morning after reports on Wednesday that two of its top AI researchers plan to leave the company to study at Anthropic. Last week, we heard about developers leaving OpenAI and another from Anthropic. 10. Affirm was downgraded by Morgan Stanley to hold and removed as a “top pick” after its steep run of declines in March. Shares of the “buy now, pay later” company are up more than 80% since the close on March 27. Subscribe to my Top 10 Morning Thoughts in the Market email newsletter for free (See here for a full list of stocks from Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling stock in his charity portfolio. When Jim talks about a stock on CNBC TV, he waits 72 hours after issuing a trade warning before making a trade. THE PRIVATE INFORMATION OF THE BURNING CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AND OUR PRIVACY POLICY. NO LEGAL LIABILITY OR OBLIGATION EXISTS, OR IS CREATED, BY YOUR ACCEPTANCE OF ANY INFORMATION PROVIDED BY CONTACTING THE INVESTMENT CLUB. NO PARTICULAR RESULT OR INTEREST IS GUARANTEED.
