The Club’s top 10 things to watch in the stock market Tuesday
The Club’s top 10 things to watch Tuesday, June 23 — Today’s newsletter was written by Jeff Marks, the Club’s director of portfolio analysis. 1. Nasdaq futures are down about 2.5 % this morning. Semiconductors and AI related-stocks are down the most, as a 10% plunge in South Korea’s stock market bleeds into U.S. markets. The pullback comes after the Nasdaq fell 1.3% yesterday, led lower by hyperscaler stocks amid growing concerns about the returns being generated from AI spending. 2. Bank of America raised its price targets across the chips space, taking hold-rated Club name Arm to $460 from $335. Intel , which we also own, went to $160 from $135. Analysts reiterated their buy rating on the stock after double upgrading it this month . BofA also lifted its PTs on buy-rated Micron to $1,500 from $950 and Applied Materials to $720 from $540. Jim Cramer’s Sunday column spent a lot of time examining the memory chipmakers and semi equipment suppliers. 3. Susquehanna started coverage of SpaceX with a hold rating and $170 price target. Analysts said a wide range of outcomes exist on the company’s relatively unproven markets and recommended waiting for a better entry point. Shares in premarket trading are 16% above its IPO price. After just raising $85 billion in its IPO, SpaceX is also planning on a bond sale . 4. Club name Nike was downgraded to hold from buy at Evercore ISI ahead of earnings next week. Analysts are concerned that management will once again cut numbers and force Wall Street to reset its expectations. We’ve said Nike has one more quarter to prove we should stick around during this frustrating turnaround. 5. Wolfe Research is out with a big shuffle of its retail ratings. Analysts downgraded Club stock Home Depot and Five Below to hold, while upgrading Target to buy and naming it their top pick into year-end. Home Depot is our hedge on lower rates and a rebound in housing activity. Wolfe prefers rival Lowe’s. 6. Darden Restaurants was downgraded to hold from buy at Evercore ISI. While analysts said there’s nothing “fundamentally wrong” with the Olive Garden and LongHorn Steakhouse parent, they expect limited earnings upside versus consensus. Darden reports earnings Thursday. 7. Rare downgrade in the off-price retail sector: Wells Fargo moved Ross Stores to hold from buy, citing its exposure to the low-end consumer and tough comparisons and building inventory. We’ve owned Ross rival TJX Companies for ages. 8. IBM was upgraded to buy from hold at JPMorgan on confidence in a second-half software acceleration. Like many other software peers, IBM’s stock has been hit hard since early June, down over 20% as of yesterday’s close. 9. JPMorgan put the estimated value of an Amazon Prime membership at $1,440 per year, roughly 10 times the actual $139 annual cost in the U.S. They arrived at that estimate by unbundling all of Prime’s components. Analysts previously thought Amazon could raise Prime prices in 2026, but now think 2027 is more likely. A $20 U.S. Prime price increase could add $3 billion of incremental revenue, according to JPMorgan. Amazon’s Prime Day shopping event started today . 10. Citi raised its price target on Club name Goldman Sachs to $1,110 from $930, while keeping a hold rating. The stock, which closed at a record high yesterday of $1,106, has been a big winner for us thanks to a dealmaking boom. Citi took hold-rated Morgan Stanley to $220 from $194, and buy-rated Bank of America to $66 from $62. 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.