Latest news with #ZevFima
CNBC
9 hours ago
- Business
- CNBC
10 things to watch in the stock market Friday including the AI race and dealmaking
The Club's 10 things to watch Friday, June 20 — Today's newsletter was written by Zev Fima, the Investing Club's portfolio analyst 1. Wall Street is on pace for a higher open this morning as investors await President Donald Trump's decision on direct U.S. involvement in the Israel-Iran conflict. Oil futures gave up earlier gains, while natural gas hit its highest level since early April. Fed Governor Christopher Waller said the central bank could cut rates as early as July. 2. Club name Home Depot has submitted a bid to acquire building products and solutions provider GMS Inc , The Wall Street Journal reported . This follows a $5 billion offer from QXO on Wednesday. It's unclear what Home Depot offered. We aren't fans of bidding wars. 3. Google is using YouTube videos to train its AI models, CNBC reported , showing how tech giants are leveraging their own platforms to gain model-building advantages. Consider: Meta has social media data. Alphabet has Google Search and YouTube. Amazon has shopping and Alexa data. Apple has phone usage data, but we still need to see more from them. We own Meta, Amazon and Apple for the Club. 4. Meta is also using its wallet to gain an AI talent edge. After poaching Scale AI's Alexandr Wang , the Instagram owner is planning to hire Safe Superintelligence CEO Daniel Gross and former GitHub CEO Nat Friedman, CNBC reported . That comes after Ilya Sutskever, OpenAI co-founder, rejected Meta's attempt to acquire Safe Superintelligence earlier this year. 5. SoftBank's Masayoshi Son is looking to partner with Taiwan Semiconductor Manufacturing Co. to build a $1 trillion AI and robotics factory in Arizona, Bloomberg News reported . TSMC is already building its chipmaking campus in the state. 6. Sticking with robotics: Club name Nvidia and Foxconn are in discussions about deploying humanoid robots at the contract manufacturer's factory in Houston that's set to produce Nvidia AI servers, Reuters reported . 7. Club name Dover acquired a German maker of hygienic pumps called IPP and is folding it into the company's Pumps & Process Solutions segment. The acquisition expands Dover's presence in industries including food and beverage and pharmaceuticals. Dover also made a deal last month for Sikora. 8. Club name Eli Lilly said the launch of Mounjaro in India has been "positive" since it began in March, Reuters reported . Sales of the diabetes and weight-loss drug appear to have increased 60% from April to May, the report noted, citing data from PharmaTrac. 9. Shares of Olive Garden owner Darden rose more than 2% this morning after the restaurant operator's fourth-quarter sales and earnings edged out estimates. Earnings guidance for its fiscal 2026 looks a bit short, while same-store-sales guidance appears to be in line with expectations. 10. Morgan Stanley said it is "tactically bullish" on Micron into its earnings report next week due to an acceleration in AI spending. Still, analysts kept their hold-equivalent rating on the chip stock, which has soared nearly 90% from its tariff-driven low in early April. Wedbush lifted its price target on buy-rated Micron to $150 a share from $130, citing positive pricing trends. 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.
CNBC
2 days ago
- Business
- CNBC
10 things to watch in the stock market Wednesday including the Fed meeting and Meta
The Club's 10 things to watch Wednesday, June 18 — Today's newsletter was written by Zev Fima, the Investing Club's portfolio analyst 1. We're on pace for a slightly higher open this morning as investors monitor the latest in the Israel-Iran conflict and gear up for Fed Chair Jerome Powell's post-meeting press conference this afternoon. As we wrote in a piece for Club members, we want to hear Powell's thoughts on the health of the U.S. consumer. 2. Initial jobless claims for last week came in basically in line at 245,000, just 1,000 below the Dow Jones consensus estimate. Recurring claims ticked lower, but were still elevated at 1.945 million. Conditions in the labor market will be another big topic for Powell. 3. Housing starts and building permits missed expectations this morning, the latest sign of subdued activity in the housing market. We discussed that in yesterday's Homestretc h in response to homebuilder Lennar's quarterly results. Housing punches above its weight in the economy. 4. Club name Meta Platforms is being super aggressive in building out its "superintelligence" team. OpenAI CEO Sam Altman said on a podcast that Meta offered OpenAI employees bonuses as high as $100 million to join the Instagram parent. 5. There's a new Street high on Oracle : Guggenheim upped its price target to $250 a share from $220 and analysts maintained the stock as their best idea. Oracle's earnings report last week showed the AI trade was alive and well. 6. Barclays raised its price target on Club name Honeywell to $258 a share from $243 and reiterated its overweight buy rating on the stock after meeting with the aerospace unit's management team. Analysts believe Honeywell has "turned the corner on negative Street estimate revision momentum," and that the aerospace business warrants a higher multiple post-spin. 7. Wells Fargo had its price target lifted at Raymond James to $84 a share from $78. The analysts, who kept their "strong buy" rating on the Club stock, cited the asset cap removal as a material mid-to-long-term positive. They said estimates will rise as the financial benefits of the removal are realized. 8. Regulators are looking to reduce capital buffer requirements at major U.S. banks, Bloomberg News reported . The move would adjust what is referred to as the enhanced supplementary leverage ratio, and essentially would make it easier for banks to buy U.S. government bonds during periods of volatility. 9. Morgan Stanley estimated that Salesforce's product price hikes, which we covered in yesterday's Homestretch, could add up to $1 billion in additional revenue over the next two years and get topline growth back into the double-digits. The firm maintained its overweight buy rating and price target of $404. 10. Shares of Nucor are on the rise this morning after the steelmaker preannounced strong earnings guidance for its second quarter ending July 5. Management forecasted earnings per share of $2.55 to $2.65, ahead of the $2.36 estimate. We're keeping a close eye on the steel industry given the higher tariffs on imports. 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.
CNBC
13-06-2025
- Business
- CNBC
Stock losses accelerate on Israel-Iran attacks — plus, the latest on Amazon, Meta and Apple
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Wall Street moved lower Friday afternoon as tensions in the Middle East escalate following Israel's attack on Iranian nuclear infrastructure. Iranian state TV said that it has suspended nuclear weapons negotiations with the U.S. — the two sides had been set to talk on Sunday. Not long afterward, as headlines around Iranian missile attacks in Israel surfaced, losses in the stock market picked up steam. The Dow Jones Industrial Average dropped nearly 2%, leading to the downside, while both the S & P 500 and Nasdaq fell more than 1%. Meanwhile, oil prices spiked on the news, though the gains have moderated compared with where they were in overnight trading. Brent crude, the international benchmark, surged 7% to above $74 a barrel. U.S. oil benchmark West Texas Intermediate crude also popped 7%, trading close to $73 a barrel. As Investing Club Portfolio Analyst Zev Fima wrote earlier this afternoon , our approach right now is to sit on our hands and not make any dramatic moves to the portfolio. "So as we approach what could be a weekend packed full of fear-inducing geopolitical headlines, we have to do that most difficult of things: nothing," he wrote. Medical shuffle: Club name Amazon is reorganizing its health-care business into six new units "with the goal of creating a simpler structure," our CNBC colleagues Annie Palmer and Ashley Capoot reported Friday. Here are a few excerpts from their story, though we recommend reading it in full : "Our leadership team has been focused on simplifying our structure to move faster and continue to innovate effectively," [Neil Lindsay, senior vice president of Amazon Health Services] said in a video chat. "One of the problems we're trying to solve is the fragmented experience for patients and customers that's common in healthcare." .... Amazon declined to share financial figures for its health business, but Lindsay said it is seeing "very strong growth" across the offerings. As long-term investors in Amazon, we remain intrigued by its ambitions in the massive health-care industry, particularly using its logistics prowess on the prescription drug delivery side. The acquisition of One Medical, a primary care provider, also was a big deal — and at the company's annual shareholder meeting in late May, CEO Andy Jassy said he was "very excited" about how its One Medical subscription is "continuing to grow." But in general, health care does seem to have been a tougher nut to crack than perhaps some expected. That's why Friday's report caught our eye because it shows Amazon is looking for ways to make progress and not being complacent with its organizational structures. Still, as of now, it's not a major needle-mover compared with the e-commerce, advertising and cloud-computing divisions. Meta's move: The founder of Scale AI, Alexandr Wang, confirmed that he's departing the startup to join Club name Meta Platforms , part of the Instagram parent's bold move to stay on the leading edge of artificial intelligence. When we wrote Wednesday about Meta investing nearly $15 billion to take a 49% stake in Scale AI, we were under the impression that Wang would join Meta's new "superintelligence" unit on top of his duties at the data-labeling startup. That is not the case. The new revelation underscores the aggressiveness of Meta CEO Mark Zuckerberg amid concerns that some of its AI technology was lagging in performance. Wang is well-known within the tech industry as a bright mind on AI — he founded Scale AI before he was 20 years old — and talent along with computing resources is very important in the AI race. Apple shipments: Rounding out these updates on Big Tech names, Reuters reported that 97% of the iPhones exported from India by manufacturer Foxconn went to the U.S. during the March-to-May period. That is a dramatic increase from the roughly 50% export rate in 2024, Reuters said, citing customs data. The reporting is a clear indication of Apple's strategy to navigate President Donald Trump's tariffs by relying less on China, which faces a much-higher duty rate than India. Up next: It's a quite week of earnings within the portfolio, though Lennar and Darden Restaurants are set to report on Monday and Friday, carrying implications for Club names Home Depot and Texas Roadhouse , respectively. Jabil, La-Z-Boy, GMS, Smith and Wesson Brands, Kroger, Accenture, and CarMax also report. The Federal Reserve's decision on interest rates and latest economic projections arrive on Wednesday. On the economic calendar, the latest numbers on retail sales and import/export prices are due out Tuesday morning, followed by initial jobless claims on Wednesday morning. Next Friday and into the weekend, the American Diabetes Associations' Scientific Sessions takes place, and Club name Eli Lilly will be there with updates. (See here for a full list of the stocks in 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.
CNBC
06-06-2025
- Business
- CNBC
Texas Roadhouse traffic rebounds. Here is what else the stock has going for it
Momentum at Texas Roadhouse is bouncing back just in time for summer. The news Club stock Texas Roadhouse rose more than 1% to $194 each on Friday after UBS said both foot traffic and sales are picking up. UBS analysts, who expressed confidence after meeting with Texas Roadhouse management, expect to see sustainable outperformance going forward. American consumers' confidence in the economy remains relatively low despite a more positive outlook for May. Fortunately for casual dining operator Texas Roadhouse, diners have still been coming through the doors, noted the analysts. UBS estimates a 5% increase in second-quarter to-date same-store sales, saying those kinds of numbers are "particularly encouraging" as "dining trends are seemingly normalizing to elevated levels." UBS, which kept its buy rating, raised its price target to $220 per share from $200. TXRH YTD mountain Texas Roadhouse YTD Big picture It's a nice turn of events for Texas Roadhouse after a disappointing first quarter led by bad weather and inflation. Thankfully, the warmer season is boosting business at Texas Roadhouse, especially as analysts noted that beef inflation headwinds are still weighing on the company's earning potential. During its last earnings, Texas Roadhouse raised guidance on its commodity outlook to about 4%. Not too long ago, Texas Roadhouse had its back against the wall as pressure points mounted. In April, Citi downgraded Texas Roadhouse from a buy to neutral on concerns that same-store sales were slowing for reasons beyond weather. The analysts also said the company, which also owns the Bubba's 33 and Jaggers casual dining chains, did not have enough catalysts to reverse competitive pressure from Brinker -owned Chili's, which they said was favored among the Hispanic population. Around the same time, BTIG analysts also cited tariff risks as a potential threat to Texas Roadhouse's plans to expand its locations. However, UBS analysts said the company is still on target to open 30 total new restaurants for the year — most of them are under the Texas Roadhouse banner. Bottom Line Jim Cramer, who has believed in Texas Roadhouse since initiating it in February, expects the stock to continue climbing. As shares moved lower in February and March, we continued to build our position. The Club made two well-timed buys in early April when all the tariff turmoil was hitting the markets and Texas Roadhouse was being unfairly dragged down. We knew all along that this largely domestic company was not going to be impacted much by tariffs. Sure, if inflation went up, that would have hurt. But so far, inflation in the economy has not spiked. And, as Club analyst Zev Fima reported on Friday, jobs are key for Texas Roadhouse. If the labor market holds up, potential diners should worry less about their jobs and feel OK going to Texas Roadhouse, which delivers value with great food at reasonable prices. Shares have gained 7.5% year to date. The stock on Friday was less than 5% below its record-high close of just over $205 per share back in late November. We also took some profits on May 13 at nearly $190. At the time, we kept our $195 price target but downgraded the stock to our hold-equivalent 2 rating to reflect the sale and recognize the move higher in the stock. (Jim Cramer's Charitable Trust is long TXRH. See here for a full list of the stocks.) 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.
