What I am looking at Thursday, Aug. 10 Cooler-than-expected July consumer price index pretty much takes even slim odds of a Fed interest rate hike off the table at next month’s meeting. Airline fares are down. Weekly jobless claims 248,000 versus 230,000 expected. The Dow , the S & P 500 and the Nasdaq are set to open higher on the tame CPI and softer jobs data. Bond yields decline U.S. investments in semiconductors and other tech that could be used by the Chinese military are banned in a new executive order signed by President Joe Biden. China’s reaction same as last time: “Blatant economic coercion.” Not much movement in our Chips stocks Nvidia (NVDA)and Advanced Micro Devices (AMD) on this news. Tie-up of Coach owner Tapestry (TPR) and Michael Kors, Jimmy Choo parent Capri (CPRI) to create an aspirational apparel colossus . Leaves Levi, VF, PVH, and Ralph Lauren in a tough spot. Can this group ever get its price-to-earnings multiple premium back? I have RL on Mad Money on Thursday evening. Capri shares soar more than 55% on the $8.5 billion offer from Tapestry. High multiples continue to get hit. This time it’s media buying platform Trade Desk (TTD). I liked the quarter and the alternative to Google, owned by Club name Alphabet (GOOGL). A way to reach those on connected TV from advertisers like Walmart (WMT). Can Bob Iger pull it off? Not with declining linear TV. The drop-off is too great. So there must be strategic action taken by the Club name Disney (DIS). The cost takeout is impressive. But, with linear on the table, Disney can’t get the multiple that Netflix (NFLX) commands despite its fantastic theme park assets. Disney’s quarter wasn’t clean, but we see evidence Iger’s turnaround plan is working. Penn Entertainment (PENN): CEO Jay Snowden paid a lot to partner with Disney’s ESPN and yet doesn’t have the technology yet to compete with DraftKings (DKNG). Truist downgrades. Barclay’s raises price target on the belief that ESPN patina will be great. Goldman Sachs research analysts say Club name Palo Alto Networks (PANW) setup improving given less cyclical risk. We will be talking about Estee Lauder (EL) and the lifting of the travel ban in China. Big impact for this awful Club stock. Wynn Resorts (WYNN), another Club name tied to China, delivered impressive second-quarter results , with beats in businesses around the globe. Illumina (ILMN): another disaster for this medical device company. Baird cuts price target to $180 per share from $229. Keeps neutral rating. Time to buy Club name Danaher (DHR), which will go down by comparison. But that’s wrong. DHR is a much better company. Barclays raises Lyft (LYFT) price target to $11 per share from $10. Controversial call because quarter wasn’t that good and Uber’s (UBER) was. But, new Lyft CEO John Risher (from Club name Amazon ) is very good. Worth delving into. 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.
What I am looking at Thursday, Aug. 10
Cooler-than-expected July consumer price index pretty much takes even slim odds of a Fed interest rate hike off the table at next month’s meeting. Airline fares are down. Weekly jobless claims 248,000 versus 230,000 expected. The Dow, the S&P 500 and the Nasdaq are set to open higher on the tame CPI and softer jobs data. Bond yields decline
U.S. investments in semiconductors and other tech that could be used by the Chinese military are banned in a new executive order signed by President Joe Biden. China’s reaction same as last time: “Blatant economic coercion.” Not much movement in our Chips stocks Nvidia (NVDA)and Advanced Micro Devices (AMD) on this news.
Tie-up of Coach owner Tapestry (TPR) and Michael Kors, Jimmy Choo parent Capri (CPRI) to create an aspirational apparel colossus. Leaves Levi, VF, PVH, and Ralph Lauren in a tough spot. Can this group ever get its price-to-earnings multiple premium back? I have RL on Mad Money on Thursday evening. Capri shares soar more than 55% on the $8.5 billion offer from Tapestry.
High multiples continue to get hit. This time it’s media buying platform Trade Desk (TTD). I liked the quarter and the alternative to Google, owned by Club name Alphabet (GOOGL). A way to reach those on connected TV from advertisers like Walmart (WMT).
Can Bob Iger pull it off? Not with declining linear TV. The drop-off is too great. So there must be strategic action taken by the Club name Disney (DIS). The cost takeout is impressive. But, with linear on the table, Disney can’t get the multiple that Netflix (NFLX) commands despite its fantastic theme park assets. Disney’s quarter wasn’t clean, but we see evidence Iger’s turnaround plan is working.
Penn Entertainment (PENN): CEO Jay Snowden paid a lot to partner with Disney’s ESPN and yet doesn’t have the technology yet to compete with DraftKings (DKNG). Truist downgrades. Barclay’s raises price target on the belief that ESPN patina will be great.
Goldman Sachs research analysts say Club name Palo Alto Networks (PANW) setup improving given less cyclical risk.
Illumina (ILMN): another disaster for this medical device company. Baird cuts price target to $180 per share from $229. Keeps neutral rating. Time to buy Club name Danaher (DHR), which will go down by comparison. But that’s wrong. DHR is a much better company.
Barclays raises Lyft (LYFT) price target to $11 per share from $10. Controversial call because quarter wasn’t that good and Uber’s (UBER) was. But, new Lyft CEO John Risher (from Club name Amazon) is very good. Worth delving into.
(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.
