My top 10 things to watch Tuesday, Sept. 19
- The Dow, the S&P 500 and the Nasdaq are set for a muted open, one day after closing slightly higher. The Fed’s two-day meeting that ends Wednesday is keeping a lid on the market. No interest rate hike is expected this time around. Wall Street will be looking for hints from central bankers on whether sticky inflation will result in any more rate hikes this year.
- The UAW threatens more strikes against General Motors (GM), Chrysler-parent Stellantis (STLA) and Club name Ford (F) if “serious progress” is not made by Friday at noon ET.
- Instacart deal made to work with a small float. The grocery delivery service priced its initial public offering at $30 per share. Top end of the expected range. Valuation of about $10 billion. Set to debut on Nasdaq on Tuesday. Ticker symbol CART. Meanwhile, chip designer Arm Holdings (ARM) down about 4% for third straight session after last week’s debut up nearly 25%.
- TD Cowen takes down Club name Starbucks (SBUX) market perform from outperform (hold from buy). Cuts price target on the stock to $107 per share from $117 on China worries.
- Big cybersecurity research from Citi: Analysts raises Club holding Palo Alto Networks (PANW) price target to $285 per share from $260. Keeps buy rating. The analysts cite excellent execution in a tough macro environment. Zscaler (ZS) gets price target bump at $190 per share from $175 at Citi. Keeps buy rating. Overly beloved identity protection company. Club name Microsoft (MSFT) has a competing product that so far isn’t good enough. Citi raises price target on cloud protection company CrowdStrike (CRWD) to $200 per share from $175. Deservedly loved for an excellent product.
- Goldman Sachs raises price target on Micron Technology (MU) to $85 per share from $80. Keeps buy rating. The analysts see an inflection point. DRAM getting better.
- Club name GE Healthcare (GEHC) started at City with a buy and an $82-per-share price target. The analysts see some growing pains but says its productions are “essential and pervasive.”
- Evercore ISI goes to outperform from in line (buy from hold) on CVS Health (CVS) because operations are improving. Slight price target bump to $83 per share from $81. I think it will take a Rite Aid (RAD) bankruptcy to get CVS going.
- Deere (DE) downgraded to in line from outperform (hold from buy) at Evercore. Price target cut to $424 per share from $456. The analysts say the cycle has peaked and now production schedules are going down. I have always hated to bet against this cycle.
- JMP Securities increases homebuilder Lennar (LEN) price target to $150 per share from $135. Keeps outperform (buy) rating. Very, very aggressive. Helped by millennials. 15-year home buying bulge.
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