The Club’s top 10 things to watch in the stock market Monday
The Club’s 10 things to watch Monday, June 22 — Today’s newsletter was written by Jeff Marks, the Club’s director of portfolio analysis. 1. Muted start the new trading week, with the S & P 500 indicated basically flat and the tech-heavy Nasdaq positive. Oil is roughly unchanged, with WTI trading at about $76.50 per barrel. Vice President JD Vance said the U.S. and Iran made “great progress” in peace talks this weekend, despite Tehran saying over the weekend it closed the Strait of Hormuz due to Irsaeli strikes on Lebanon. 2. SpaceX was initiated with a hold rating at KeyBanc. Analysts said the company “possess significant disruptive growth avenues,” but they believe this is already reflected in the stock’s current valuation. Shares of SpaceX were off about 4% this morning. It’s coming off back-to-back losses to end last week. 3. Abbvie is buying Apogee Therapeutics for $10.9 billion to strengthen its immunology portfolio. Abbvie’s top immunology drugs include Skyrizi, which competes against Tremfya from Club name Johnson & Johnson . Also worth noting: Goldman Sachs was a financial advisor to Apogee on the sale. We own Goldman as a bet on increased dealmaking. 4. CRH , a provider of asphalt, cement and other construction materials, is acquiring smaller peer Arcosa for $8.5 billion . CRH says the acquisition is “highly complementary” at a time of growing demand for energy and utility infrastructure. Goldman was also a financial advisor to Arcosa on the deal. 5. Club name Corning’s price target increased to $205 from $149 at Truist. Shares ended last week at $195. The analyst raised its estimates due to strength in Corning’s segment catering to the AI data center buildout. However, Truist maintained its hold rating due to what it thinks is a lack of upside to consensus estimates and record valuation. 6. Morgan Stanley expects steel prices to remain elevated in the second half of the year. Analysts increased their price target on hold-rated Nucor to $258 from $227. They took their PT on Cleveland-Cliffs to $12.50 from $12, but downgraded the stock to hold, saying “expected high steel prices are already reflected in equities.” 7. Estee Lauder was reinstated with a buy and price target of $100 at Goldman Sachs. The analyst believes the market is underestimating the company’s growth momentum. The market cheered last month when Estee Lauder walked away from merger talks with Spanish beauty peer Puig. 8. Wells Fargo thinks semiconductor capital equipment stocks still have room to run. Analysts raised their PTs on Applied Materials , KLA Corp , Lam Research and ASML . They view ASML, which makes the advanced lithography machines necessary to make AI chips, as a catch-up opportunity. While ASML is up around 80% this year, the other three stocks have more than doubled. 9. Jim Cramer’s Sunday column for Club subscribers explored the forces leading to recent underperformance in the hyperscalers ( Amazon , Meta Platforms , Alphabet and Microsoft ) and the outperformance in memory and semi-cap equipment stocks, namely Applied Materials, KLA and Lam Research. Simply put, the winners have products in shortage. 10. Chevron and Microsoft agreed to a 20-year deal to provide natural gas power to a West Texas data center project. The majority of the power generation will come from Club name GE Vernova’s turbines, and Caterpillar’s Solar Turbines will provide additional capacity. 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.