10 things to watch in the stock market Tuesday after the Nasdaq’s record close

1. Wall Street is headed for a lower open Tuesday, a day after the tech-heavy Nasdaq Composite closed at a record high. The S&P 500 and Dow also advanced to kick off the holiday-shortened trading week. The S&P 500 enters Tuesday just 0.2% below its record close on June 18. The Dow is about 2.1% below its May 17 peak.
2. Stifel boosted its price targets on Costco and Walmart after a deep dive on the U.S. grocery market showed accelerating share gains for the companies. Analysts’ new target for Club name Costco of $900 a share, up from $850, implies 6.4% upside from Monday’s close. Stifel went to $71 a share from $69 on Walmart, implying 5.2% upside.
3. Citi downgraded homebuilders DR Horton and Lennar to a hold-equivalent rating to reflect a slowing housing market, which has been weighed down by elevated interest rates. Both stocks were moving lower Tuesday morning.
4. Seaport Research downgraded Goldman Sachs to a hold-equivalent rating on valuation concerns after the investment bank’s stock has outperformed this year; since mid-April alone, the stock is up about 19%. Meanwhile, the firm upgraded Bank of America, saying its stock still looks inexpensive and its loan book is getting better.
5. Piper Sandler made a bold valuation call on CrowdStrike after a huge run, downgrading the cybersecurity stock to a hold-equivalent rating from overweight. Analysts still see growth opportunities for CrowdStrike, but they argued the risk/reward is less attractive at current levels. The stock is up almost 54% this year and has more than doubled over the past 12 months.
6. GE Aerospace extended the contract of CEO Larry Culp through the end of 2027. Culp, who had been floated as a potential candidate for Boeing CEO, led the breakup of industrial conglomerate General Electric into three separate entities: GE Aerospace, power-focused GE Vernova and Club holding GE Healthcare.
7. RBC Capital cut its price targets on last week’s earnings losers. The firm went to $12 a share from $22 on Walgreens Boots Alliance and $75 a share from $100 on Nike. Both stocks were slammed in response to disappointing results and guidance cuts.
8. MoffettNathanson trimmed its price target on Club name Disney to $125 a share from $130, but maintained its buy rating after a rough second quarter for the stock. Bank of America maintained its buy rating and $145 price target on long-term strength in experiences and signs of a turnaround in Disney’s content slate. We bought more Disney stock on Monday.
9. Wells Fargo trimmed its price target on Las Vegas Sands to $58 a share from $60 and on Club name Wynn Resorts to $126 from $128. Analysts kept their buy ratings on the casino operators. While there’s big upside to their price targets, it’s clear that no one wants anything to do with China.
10. Guggenheim removed McDonald’s from its “best idea” list and lowered its price target on the fast-food giant to $280 from $315, which implies 12% upside from Monday’s close. Still, the firm kept its buy rating on the stock.

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