“Will the soaring technology stocks continue to lead the market on Friday, or will a rotation into value stocks take investors by surprise? Jim Cramer brings you his top 10 things to watch, unraveling the intricate web of market dynamics and potential opportunities for the day ahead.”
In today’s market news, there are several key developments that investors should pay attention to.
Firstly, Amazon (AMZN) reported impressive earnings, leading to a 7% jump in its stock price. The company’s retail segment performed exceptionally well, revolutionizing the shopping industry. Additionally, Amazon Web Services, its cloud unit, is gaining market share and generating significant profits. Despite cost optimization challenges, the impact is gradually decreasing. Moreover, Amazon’s advertising segment is experiencing rapid growth due to the implementation of new inferential generative AI technology. Nvidia (NVDA) is also benefiting from this trend, with its worth reaching billions. Overall, Amazon’s operating income surged by over 340% to $11.12 billion.
Another company that surpassed expectations is Intel (INTC), resulting in a 7% increase in its stock price. The chipmaker’s performance indicates a potential revival of the PC cycle. Intel’s management is actively addressing past issues and initiating changes, leading to several price target upgrades. HSBC even upgraded the stock from a sell to a hold rating.
On the other hand, Hertz (HTZ) reported disappointing earnings, highlighting the challenges posed by repair costs and depreciation in the electric vehicle (EV) market. As a result, ride-sharing companies are considered a more favorable investment. Hertz’s CEO, Stephen Scherr, aims to improve margins by focusing on cost reduction.
Ford’s (F) earnings report was met with uncertainty. The company suffered significant losses during the labor strike, more than anticipated, and is still grappling with warranty issues and EV-related losses. Consequently, Ford’s stock price dropped by over 3%.
Stanley Black and Decker (SWK) showcased the positive effects of its restructuring efforts by beating earnings expectations and raising its outlook. The tool maker’s stock price rose by 3.5%. In contrast, Whirlpool (WHR) reported disappointing results, indicating a potential advantage for Stanley Black and Decker in the market.
Bristol Myers (BMY) received a downgrade from William Blair due to the slow development of new products. However, Merck (MRK) remains a strong player in the anti-cancer franchise and continues to perform well in the face of the COVID-19 pandemic. Shares of Merck increased nearly 1% after reporting earnings that beat expectations.
Hasbro (HAS) was downgraded to neutral from buy by Bank of America as consumer sales declined by 19%. Share prices fell by over 1%. In contrast, Bank of America recommends buying shares of Mattel (MAT).
DraftKings (DKNG) is expected to experience positive catalysts leading up to its investor day on November 14. Citigroup has opened a “positive catalyst watch” and believes the company could raise its long-term adjusted EBITDA target, which is not currently reflected in its stock price.
Furthermore, Citigroup and Barclays lowered their price targets for UPS, suggesting potential concerns in the company’s performance.
Lastly, Citigroup reduced the price target for Vulcan Materials (VMC) based on a soft outlook. However, the author disagrees, stating that next year is likely to be an infrastructure-focused year.
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