My top 10 things to watch Wednesday, July 10
- Wall Street is getting ready for Day 2 of Jerome Powell on Capitol Hill. The Federal Reserve Chair is on the House side Wednesday, one day after telling senators that higher interest rates for too long could hurt economic growth. The S&P 500 and Nasdaq hit more records and logged six straight winning sessions.
- Club name Honeywell agreed to buy the LNG unit from Air Products for $1.8 billion. The business includes liquefied natural gas heat exchangers that can be for data centers.
- Taiwan Semiconductor Manufacturing Company (TSMC) reported big quarterly numbers. That’s good for Club name Nvidia as TSMC makes chips for the artificial intelligence powerhouse.
- Tesla shares on Wednesday were trying to make it 11 winning sessions in a row. Goldman Sachs increased its price target to $248 per share from $175. Morgan Stanley valued Tesla Energy at $183 billion, calling it “almost entirely a pure play storage business.”
- Chipotle‘s longtime CFO Jack Hartung announced he will retire next year. He had an amazing run: 22 of his 25 years at the company as finance chief. Hartung will be replaced by Adam Rymer, a 15-year Chipotle veteran.
- Club names Microsoft and Apple will not be observers on OpenAI’s board. The changes came as antitrust scrutiny in the U.S. and Europe of Microsoft’s investment and partnership with OpenAI intensifies.
- Citi lowered its Estee Lauder price target to $135 per share from $175. The analysts kept their buy rating despite expressing caution into next month’s earnings release. Estee Lauder has been a terrible stock for the Club after being great for so many years.
- Endless price target bumps for Netflix included late Tuesday’s increase at KeyBanc to $735 per share from $707. The analysts kept their overweight buy rating, forecasting a strong earnings release next week.
- Bank of America downgraded Mastercard and Visa to neutral from buy and cut its price targets on each. It’s highly unusual to ever see a downgrade of these two sainted names. The analysts see limited upside on valuation.
- Citi raised its Procter & Gamble price target to $190 per share from $177, acknowledging a run higher in the Club stock this year. The analysts kept their buy rating, though they are cautious on the quarter out later this month.
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