10 things to watch in the stock market Tuesday, including long-awaited China stimulus

1. Wall Street is looking at a higher open Tuesday, one day after the S&P 500 closed at a record high. China related stocks were on the move Tuesday after the People’s Bank of China said it will cut interest rates. The Chinese central bank also unveiled other stimulus measures.

2. Club name Starbucks was downgraded to an underperform sell rating from hold at Jefferies. The analysts don’t seem to be believers in new CEO Brian Niccol, the former boss of Chipotle. They characterized the stock gains since the CEO switch as too much, too soon. They think a reset to Starbucks fiscal 2025 guide is coming. What the Jefferies downgrade misses is the market is giving Starbucks a pass as Niccol builds his team and makes changes.

3. Truist downgraded Club holding Costco to a hold rating ahead of earnings, which are out after Thursday’s close. The analysts said the stock’s valuation leaves little room for error. We can’t argue against the stock being expensive but it always is. Truist also upgraded Walmart to buy on accelerating share gains and fast-growing higher margin revenue streams like advertising.