My top 10 things to watch Wednesday
1. Equities are lower in premarket trading Wednesday, with the S&P 500 and Nasdaq Composite both down around 0.2%. Meanwhile, oil prices pulled back slightly after having soared 1.5% on Tuesday on the back of Saudi Arabia’s extended production cuts. West Texas Intermediate crude was trading just above $86 a barrel. Is oil breaking out, or is it holding?
2. Chip design firm Arm Holdings’ roadshow ahead of a planned initial public offering is impressive. But is it too China-focused? Arm, owned by SoftBank (SOBKY), is expected to set a price range for the IPO this week.
3. Club name Walt Disney (DIS) faces an existential in crisis in its ongoing dispute with Charter Communications (CHTR), with $4 billion on the line. You want to miss the Jets? The Bills? The U.S. Open? Who gets blamed?
4. A group of retired Chinese Communist Party elders reportedly upbraided and reprimanded Xi Jinping ahead of an announcement that the Chinese president will not attend an upcoming summit of the Group of 20 major economies in India, according to Nikkei Asia — indicating “there are signs of turmoil in Chinese domestic politics.”
5. TD Cowen on Wednesday upgrades Club holding Constellation Brands (STZ) to outperform, from market perform, while raising its price target on the beer maker’s stock to $300 a share, up from $240.
6. William Blair on Wednesday initiates coverage on Trade Desk (TTD) with an outperform rating and no price target. The company, which specializes in marketing automation technologies, is a direct competitor to Club name Alphabet (GOOGL).
7. UBS on Wednesday lowers its price target on glucose-monitoring firm Dexcom (DXCM) to $138 a share, down from $175, while maintaining a buy rating on the stock.
8. HSBC on Wednesday initiates coverage of 11 U.S. biopharmaceutical and health-care companies. The firm assigned Johnson & Johnson (JNJ) a hold rating and $175-a-share price target; Biogen (BIIB) a buy rating and $360 price target; and Amgen (AMGN) a buy rating and $320 price target.
9. Loop Capital on Wednesday raises its price target on Club name TJX Companies (TJX) to $105 a share, up from $100, while reiterating a buy rating on the stock. The firm cites the off-price retailer’s “better brands and lean clearance inventory” in stores so far in the third quarter.
10. Mizuho on Wednesday lowers its price target on Dominion Energy (D) to $46 a share, down from $58, while maintaining a neutral rating on the stock. The company’s sale of all three of its gas-distribution companies lowers the firm’s 2025 earnings-per-share estimate to $3.27, but should improve Dominion’s credit metrics, according to Mizuho.
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.