Jim Cramer’s top 10 things to watch in the stock market on Thursday
My top ten things to watch for Thursday, July 2 1. The June jobs report came in weaker than expected, with non-farm payrolls rising 57,000 compared to the Dow Jones consensus of 115,000. Stock futures are firming in response, and the yield on the Fed-sensitive 2-year Treasury is falling. The market is taking this as a sign that the central bank will not need to be hawkish in the near term. Oil continues to fall, which eases inflation, too. 2. OpenAI is considering giving the US government a 5% stake in the company, reports the Financial Times. Part of CEO Sam Altman’s argument, according to the FT, is that this could help the public engage in the promotion of AI. Bottom line: We’ve seen the Trump administration turn up the heat on OpenAI’s biggest rival Anthropic. 3. Palantir was promoted to short-term acquisition of DA Davidson. The $175 price target implies a 40% upside for the stock, which is having a rough year like many others in software. The data analytics company is growing at an impressive clip, analysts say, making the stock the most attractive it’s been in a long time. They called it a “gift” in time for America’s 250th birthday. 4. Nvidia is launching a new business model for a fast-growing AI startup, and the chipmaker is offering quick access to computing power for a slice of future revenue. Interesting moves? Yes. But the Club name Nvidia still needs to start buying stock hand over fist to revive its stock and close the gap of underperformance compared to its chip peers. 5. Meta is down a few bucks this morning as the market digests news that it is planning a cloud business to sell AI computing power. This is an incredibly profitable business model, so it’s hard to believe that Meta went up 8.8% yesterday. This is more important than that. JPMorgan called it highly complementary to Meta’s current AI efforts, but said its preference would be to develop core AI products. Can it do both? 6. BMO Capital initiated Club Honeywell Aerospace’s name with a buy rating and a price target of $276, which is about 21% up from yesterday’s close. Analysts said that opening up the supply chain is the key to the investment case. I think a merger is a possibility at this 7. Goldman Sachs likes airlines as fuel prices fall, increasing its PTs on Delta Air Lines ($116 from $80) and United Airlines ($162 from $131). Income trends are strong, too. Goldman maintained both purchases. Instead, I would consider buying Club Boeing stock. We believe in the story of change under CEO Kelly Ortberg. 8. DuPont’s price target was raised to $170 from $168 at Citi. Another beneficiary is lower fuel prices and the easing of tensions in the Middle East. I was not happy with this Club stock. DuPont smartly launched its Qnity electronics business in November, and that was a star for us. Now, I want DuPont CEO Lori Koch to take action to improve the company’s exposure to healthcare and water. 9. Bank of America raised its price target on General Mills to $39 from $36, but kept the stock steady. Shares rose 8.5% yesterday after reporting a stellar quarter and announcing multi-year cost-cutting plans. Other food stocks rose sympathetically. I don’t think this means the struggling team has reached the quarter, so I won’t rush the move. 10. Cardinal Health’s price target rose to $260 from $240 at BofA. Analysts see it as consistent with continuing to kill the health care provider. There has been a surprising comeback in health care stocks in recent weeks. I agree that we started buying Cardinal in early March, but we took advantage of the pullback before this meeting to increase our position as we saw nothing wrong with the business. 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.
