10 things to watch in the stock market Friday including big earnings movers

By News Room Last updated Aug 23, 2024

My top 10 things to watch Friday, Aug. 23 1. Wall Street is tracking for a solidly higher open Friday ahead of Federal Reserve Chair Jerome Powell’s closely anticipated speech from Jackson Hole at 10 a.m. ET. The major averages struggled in Thursday’s session, with the Nasdaq losing 1.7% and turning slightly negative for the week. The S & P 500 and the Dow lost 0.9% and 0.4%, respectively. 2. Citigroup opened a negative catalyst watch on Ulta Beauty and lowered its price target to $375 in anticipation of an earnings miss next week. Weakening trends in the cosmetics category and elevated competition are headwinds for Ulta, analysts said. 3. Piper Sandler upgraded Chewy to a buy-equivalent rating, arguing a profitability inflection appears to be underway at the online pet food seller. The firm added that the potential for pet adoption to pick back up represents another positive for Chewy. 4. UBS downgraded Las Vegas Sands to a hold equivalent rating on a slower profit recovery in Macau, the Chinese gambling hub. Exposure to Macau has been a thorn in the side of Las Vegas Sands and peer Wynn Resorts’ stock this year due to the sluggish Chinese economy. 5. Shares of Cava are surging after a blowout quarter with comparable store sales growth of 14.4% versus 7.45% estimates. The Mediterranean fast-casual chain also reported better-than-expected revenues and adjusted EBITDA. 6. Workday shares are jumping after executives at the HR software maker committed to improving profitability over the next three years. The stock had initially been lower in extended trading despite better-than-expected quarterly results. 7. Another earnings mover: Shares of Ross Stores gained on the back of a beat-and-raise quarter. Off-price retail is working. Club holding TJX Companies ‘ quarterly results topped expectations earlier this week, and it also lifted its guidance. Meanwhile, Burlington Stores was named a top pick at Wells Fargo, with analysts lifting their earnings estimates and taking their price target to $325 a share. 8. Nike and Foot Locker were started with hold-equivalent ratings at Piper Sandler. Foot Locker, which reports earnings next week, has been attempting a turnaround under CEO Mary Dillon and leaning into growing non-Nike brands, like Hoka and On Holding . Piper analysts prefer buy-rated On Holding and Crocs in footwear. They’re neutral on Lululemon. 9. Uber and General Motor ‘s Cruise are teaming up to bring Cruise’s autonomous vehicles to Uber’s rideshare platform. The partnership is expected to launch as soon as next year, with Cruise conducting safety tests in a few markets as it tries to bring its driverless vehicles back into operation. Uber has a similar partnership with Club holding Alphabet ‘s Waymo in Phoenix. 10. Wells Fargo upgraded BJ’s Wholesale Club to a buy-equivalent rating after its post-earnings sell-off. Analysts see plenty to like despite lower full-year guidance. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

My top 10 things to watch Friday, Aug. 23

1. Wall Street is tracking for a solidly higher open Friday ahead of Federal Reserve Chair Jerome Powell’s closely anticipated speech from Jackson Hole at 10 a.m. ET. The major averages struggled in Thursday’s session, with the Nasdaq losing 1.7% and turning slightly negative for the week. The S&P 500 and the Dow lost 0.9% and 0.4%, respectively.

2. Citigroup opened a negative catalyst watch on Ulta Beauty and lowered its price target to $375 in anticipation of an earnings miss next week. Weakening trends in the cosmetics category and elevated competition are headwinds for Ulta, analysts said.

3. Piper Sandler upgraded Chewy to a buy-equivalent rating, arguing a profitability inflection appears to be underway at the online pet food seller. The firm added that the potential for pet adoption to pick back up represents another positive for Chewy.

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