My top 10 things to watch Tuesday, Dec. 19
1. U.S. stocks rise in premarket trading Tuesday, with S&P 500 futures up 0.18%. Equities finished mostly higher Monday, boosted in part by gains in the “Magnificent Seven” mega cap technology stocks. Bond yields are down slightly, with that of the 10-year Treasury at 3.9%. And oil prices pull back after climbing 1.5% Monday, with West Texas Intermediate crude trading at $72.70 a barrel.
2. Oppenheimer names Club holding Microsoft its “top large cap pick” for 2024, citing an expected revenue boost from generative artificial intelligence. The firm has a $410-per-share price target on Microsoft stock, with an outperform rating.
3. Bank of America raises its price target on Boeing to $275 a share, up from $250, and keeps a buy rating on the stock. Everything that I said could come true is coming true, with inventory almost done. It’s a new start with new planes.
4. KeyBanc raises its price target on Uber Technologies to $70 a share, up from $61, while reiterating an overweight rating on the stock. The firm expects improved earnings and free cash flow, helped by stable trends in ride-sharing market share.
5. KeyBanc says its “favorite ideas” are semiconductor firms Micron Technology, Marvell Technology and Club name Nvidia. “We recommend positioning in stocks that are further through the cycle and/or stocks that are exposed to key secular growth vectors, such as AI,” the analysts at KeyBanc write.
6. Bank of America raises its price target on Club holding Costco Wholesale to $740 a share, up from $655, while maintaining a buy rating on the stock. Following Costco’s standout quarterly report last week, the firm expects the wholesale retailer’s value proposition to become even more attractive in the current economic environment.
7. TD Cowen raises its price target on Nike to $129 a share, up from $125, suggesting the sneaker maker’s revenues in China are set to accelerate.
8. Wells Fargo upgrades Rockwell Automation to overweight from an equal-weight rating, while raising its price target to $357 a share, up from $280. The bank argues that a combination of improving orders and a strengthening purchasing managers’ index (PMI) should drive outperformance in the company’s shares.
9. Piper Sandler downgrades Plug Power to a sell-equivalent rating from neutral, while lowering its price target on the stock to $2.30 a share, down from $6.50. The firm cites financing risk for the downgrade.
10. Stifel raises its price target on Waste Management to $190 a share, up from $183, while maintaining a buy rating on the stock. The firm predicts above-average margin expansion and opportunities for mergers and acquisitions in the solid waste space in 2024.
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