Jim Cramer’s 10 things to watch in the stock market on Thursday

1. Wall Street was up sharply on Thursday after another weak inflation report. Earlier in the day, the Producer Price Index unexpectedly fell for May, following a flat Consumer Price Index on Wednesday. S&P 500 and Nasdaq Despite a cautious stance from the Federal Reserve, stocks rose to all-time highs following the CPI data.
2. The Fed, which again kept interest rates on hold after its two-day meeting in June, signaled just one rate cut this year, fewer than the three cuts expected in March. In a press conference after the meeting on Wednesday afternoon, Fed Chairman Jerome Powell said inflation remains too high and any rate cuts would be data-dependent.
3. Following Thursday’s release of the producer price index, the probability of a Fed rate cut in September jumped to 64%, according to the CME FedWatch tool. The central bank only expects one rate cut in 2024, but a second cut in December also became more likely. 10-Year Government Bond Yield It fell on Thursday.
4. While the Fed’s rate cuts are likely to benefit the overall stock market, we’ve identified nine portfolio stocks, from homes to cars, that could actually rise: Interest rates determine whether borrowers can purchase big-ticket items, which usually require some sort of financing agreement.
5. Treasury Secretary Janet Yellen told CNBC on Thursday that the nation’s $34.7 trillion debt burden is manageable as long as it stays at its current level relative to the overall economy. “We’re in a reasonable position,” Yellen said. But the former Fed chair said high interest rates are adding to the burden.
6. Broadcom AI-driven quarterly results beat expectations by a wide margin and led to an increased guidance. VMware was also held back. We raised our target price to $1,900 from $1,550. CEO Hock Tan said non-AI semiconductors were bottoming out during the post-earnings conference call. Broadcom followed the lead of Nvidia, another chip stock in our portfolio, in announcing a 10-for-1 stock split.
7. Tesla Tesla shares surged more than 6% after CEO Elon Musk claimed shareholders are likely to approve his controversial $56 billion compensation package. He also said a second resolution to move Tesla’s headquarters to Texas would pass by a large margin. He did not provide details or sources for those claims.
8. The roast of Tom Brady just finished. Netflix Nathan’s has also announced another live event: a Labor Day hot dog eating contest between Joey Chestnut and Takeru Kobayashi, both past winners of Nathan’s’ annual Fourth of July event. Chestnut had been barred from competing at Nathan’s due to a deal with a plant-based hot dog brand.
9. Goldman Sachs Restaurants: Analysts like CMG, DPZ, SG, QSR, and SHAK, dislike JACK and WEN, are neutral on YUM and WING, and like the club names. StarbucksNew initiatives are being implemented and there are signs that the situation is bottoming out.
10. Wells Fargo is Casey’s General Stores The price target was raised to $415 a share from $340. Analysts noted the convenience store operator is off to a strong start in its three-year plan. Casey’s breakfast pizza is one of my favorites.

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