The Club’s top 10 things to watch in the stock market on Monday
10 Club items to watch Monday, June 29 — Today’s newsletter is written by Jeff Marks, the Club’s director of portfolio analysis. 1. S & P 500 and Nasdaq futures are higher this morning, recouping some of last week’s losses, after the US and Iran agreed to end military strikes following the latest outbreak. President Donald Trump said on Truth Social that the meeting with Iran will take place tomorrow in Doha, Qatar. The oil is a little high. 2. We are coming out of a tough and volatile market for AI, especially the megacap tech companies that are financing a large portion of data center construction. What’s next? Jim Cramer devoted his Sunday column for Investing Club subscribers to answering that question. 3. Club name Honeywell has completed its long-awaited split, spinning off its aerospace and defense business into an independent company called Honeywell Aerospace (ticker: HONA). The remaining Honeywell Technologies, which will retain the HON ticker, focuses on industrial automation. We plan to own both Clubs. Melius initiated coverage on HONA with a rating of Buy and a target price of $306. Cowen and Wolfe Research are out and participating. 4. A slew of startups from Quantinuum, the Honeywell-backed quantum company that went public on Nasdaq earlier this month. Cantor, Bank of America, Jeffery, and UBS all started with purchases. Morgan Stanley walked away holding. We do not own QNT (which is a big consideration for us). However, a well-performing company will appreciate the value of Honeywell Technologies’ stake. 5. SpaceX will be added to the popular Nasdaq 100 index before trading begins on July 7. Elon Musk’s rocket company and AI company benefited from the new eligibility criteria for the operator’s fast-track program, adopted before SpaceX’s historic IPO. The stock was up about 2% in the market. It’s down more than 20% since the close on June 16. 6. Landing in space: Rocket Lab buys Iridium Communications for about $8 billion. Iridium has a satellite communications network, while Rocket Lab has a rocket launch and satellite manufacturing business. Rocket Lab says it will be “one of the most transformative deals in the space industry.” 7. Martin Marietta Materials announced a merger agreement with Lhoist North America in a $13.5 billion cash and stock deal. The combined firm will be a leading lime and limestone company. We saw another deal in the construction materials industry last week, when CRH bought Arcosa for $8.5 billion. The club’s name Goldman Sachs, which we own for its M & A expertise, contributed to both contracts. 8. Cantor Fitzgerald raised its target price on small semiconductor stocks, including Micron ($2,000 from $1,500) and Materials ($850 from $650). Both companies are among Cantor’s top picks. The club’s names Nvidia and Broadcom are also on its list. 9. Nike’s price target was cut to $47 from $52 at JPMorgan ahead of Tuesday night’s earnings. Analysts maintained their hold rating. As we mentioned in our “next week” column for Club members, this is a do-it-yourself or Nike report. CEO Elliott Hill’s turnaround has been disappointing so far. 10. KeyBanc cut its price target on McDonald’s to $315 from $330. While maintaining their buy rating, analysts lowered their expectations for the US same store, saying business has yet to regain momentum. Sign up for my free Top 10 Morning Thoughts on the Market email newsletter (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 will 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.
