The Club’s top 10 things to watch in the stock market on Friday
The Club’s top 10 things to watch for Friday, July 24 — Today’s newsletter is written by Jeff Marks, the Club’s director of portfolio analysis. 1. Stocks headed for a muted open following yesterday’s sell-off on rising oil prices and bond yields, as well as concerns about aggressive AI spending by hyperscalers. That strong mix of crosscurrents has prevented us from buying the dip. 2. Intel shares are higher after the Club chip maker reported a blowout quarter last night. The supply of data center CPUs cannot keep up with demand as agent workloads increase the number of CPUs required in relation to AI accelerators (such as Nvidia’s GPUs and Google’s internal TPUs). Intel’s third-party business is improving, but there are no new customer announcements. Capex will increase significantly to meet demand. 3. Group name Nvidia and Amkor announced a $1.5 billion multi-year strategic partnership to develop advanced semiconductor packaging technology and research next-generation AI and superfast computing. Amkor shares are up more than 11% this morning. UBS has upgraded Amkor to buy from hold. Price target to $90 from $80. 4. American Express reported a better-than-expected quarter. But as we heard about Club Capital One stock earlier this week, AXP is reinvesting its profits to fund growth opportunities. Shares fell after the company left its full-year earnings per share guidance unchanged. 5. Shares of SLB rose after the oil services company beat analyst estimates for both revenue and adjusted EPS. Maritime operations in Latin America, Asia, Europe and Africa in addition to offset disruptions in the Middle East. The company’s data center solutions business is on track to surpass the $1 billion annual revenue mark by the end of the year. 6. Deckers Outdoor shares are lower after reporting in-line sales, a penny beat in EPS, and a slight bump in the company’s full-year outlook. CEO Stefano Carot said that despite the pressure on consumers, he believes Hoka and Uggs will continue to take market share due to a “compelling product pipeline.” 7. GE Healthcare said CFO Jay Saccaro is stepping down to pursue a role outside the med-tech space. The MRI machine maker also reported first-quarter earnings above analyst estimates. The breakup of General Electric created a large number of shareholders, but GEHC is a conglomerate of three companies. GE Aerospace and the Club name GE Vernova were the real winners. 8. Citi has placed a “90-day catalyst watch” on Dell, citing strong confidence in revenue momentum. Earlier this week, another AI server maker Super Micro released some solid preliminary numbers . Jim Cramer said in response that if Super Micro is doing well, Dell must be doing amazing. 9. Verizon reported a mixed quarter, with a revenue miss but a slight EPS beat. The company slightly raised its full-year earnings outlook. Postpaid phone additions of 184,000 were ahead of consensus of 111,000, per FactSet. Stocks don’t make a big market. Rival AT&T delivered a strong print Wednesday morning, gaining 3.5% on the day. 10. Oracle was awarded a 10-year, $7 billion software contract with the Department of Defense. The stock is up about 2% this morning. If the gains don’t last, it will be Oracle’s only 10-day session since June 1. Shares are down more than 50% in that stretch. 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 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.
