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

1. of S&P 500 and NasdaqBoth stocks had risen for seven straight trading days but opened lower after closing at record highs on Wednesday. The Consumer Price Index for June hit its lowest inflation level in more than three years. Stock futures initially rose after the CPI numbers but then fell on deflation fears.
2. Nick Timiraos, the Wall Street Journal’s Federal Reserve whisperer, said he is leaning toward the idea that it’s time for central bank Governor Jerome Powell to change course and start cutting interest rates. The first challenge is to get inflation down without causing a major economic slowdown. Powell is close to accomplishing that mission.
3. Shareholders Costco Are we getting a parting gift from Rich Guarante, who stepped down as CFO but is still helping with the transition? The club name decided to raise membership fees for the first time since 2017. This is the second catalyst for the stock we have been waiting for since the special dividend was announced in late 2023. Yes, renew your membership for the best deals on the planet. This is a good sign of inflation. Costco waited until it decided it didn’t matter. Sales in June increased 7.4% to $24.48 billion. E-commerce sales surged more than 18%. Many target price increases point to a strong core business and membership fee increases.
4. PepsiCo The company reported mixed quarterly numbers due to weakening demand for beverages and snacks in North America. The company also lowered its outlook. The Quaker recall was a drag. It was Pepsi, not Frito-Lay, that drove the numbers. That could be due to consumers looking to save money, or it could be due to Novo Nordisk and Club Name Eli Lilly’s GLP-1 weight loss drug, or both.
5. Chill and Maggiano’s friends Blinker McDonald’s remains a huge underdog because others have overpriced themselves. CEO Kevin Hochman told “Mad Money” that the brand delivers value every day. Morgan Stanley lowered its price target for McDonald’s to $300 from $312, citing short-term weakness. The analysts said the possibility of a miss is “well understood.”
6. delta Earnings per share were in line with quarterly guidance, but revenue missed expectations. The company maintained its full-year outlook. Olympics hit hard as tourists avoid Paris this summer? But people still want to go to Europe to see Taylor Swift in concert.
7. Wells Fargo is Advanced Micro Devices We raised our price target to $205 per share from $190 and maintained our buy recommendation. People like AMD’s deep internal open source software. NVIDIA and BroadcomThe price target for was raised to $2,400 per share from $1,650 at Rosenblatt. The analysts maintained their buy rating on Broadcom. Rosenblatt sees room for upside in Broadcom’s recently raised fiscal 2024 revenue target. Nvidia and five other club tech stocks are dominating the market, and we think they should be.
8. Despite the setbacks, Pfizer The company is experimenting with a once-daily weight-loss drug and plans further early-stage trials later this year. Pfizer is trying to make inroads with pharmaceutical companies that dominate the GLP-1 market. Novo NordiskOzempic and Wegovi of Eli LillyMounjaro and Zepbound.
9. Piper Sandler is He and She Price targets from $16 to $18 per share. TD Cowen from $15 to $25. I really like this GLP-1 stock. Due to the branded drug shortage, combination products are temporarily allowed. Hims & Hers says they will eventually offer the branded drug once the shortage is resolved.
10. Piper Sandler is Estee Lauder The company’s price target was raised to $108 a share from $141, but its rating was kept neutral. Analysts said the biggest risk is whether wary consumers will be willing to pay for luxury goods. Club stock has struggled in China, where it’s faring badly.

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