Jim Cramer’s top 10 things to watch in the stock market Tuesday

Aug 13, 2024
jim-cramer’s-top-10-things-to-watch-in-the-stock-market-tuesday

Chipotle Mexican Grill CEO Brian Niccol speaks with CNBC’s Kate Rogers at the CNBC Evolve conference November 19th in Los Angeles.

Jesse Grant | CNBC

My top 10 things to watch Tuesday, Aug. 13

1. Embattled Starbucks CEO Laxman Narasimhan is out immediately. Brian Niccol, chairman and CEO of Chipotle is in. The coffee giant named Niccol as its new CEO, effective Sept. 9. Starbucks CFO Rachel Ruggeri will serve as interim CEO until Niccol takes over. Shares of Club name Starbucks jumped more than 10% on the news. Chipotle stock dropped more than 10%. I am gratified by this move. I adore Niccol and what he did with Chipotle, and he can do it with Starbucks. Fabulous worker relations and amazing recognition of brand. Laxman had none of that.

2. U.S. stocks jumped early Tuesday after the producer price index for July came in cooler than expected. It’s the first of two major inflation reports this week. The consumer price index comes out Wednesday. Bond yields dropped after the PPI data, which bolstered the case for the Federal Reserve to cut interest rates. Market odds are roughly 50-50 on whether the central bank will do a 25- or a 50-basis-point rate cut in September.

3. Following stronger-than-expected quarterly earnings and revenue, Home Depot cut its full-year same-store sales number: It now expects comps to drop by 3% to 4%. The Dow stock fell modestly. Still no turn in the consumer. But there should not be until the Federal Reserve cuts interest rates and home equity loans for renovation projects get cheaper.

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