My top 10 things to watch Thursday, Aug. 27
1. Still zero-sum? Can tech go up with rates coming down? Isn’t the weighting of tech too high if rates are going lower? These are some of the questions I have about the market after Monday’s tech rollover knocked the Nasdaq and the S&P 500 while the Dow closed at a record high. There’s still not enough money coming into stocks.
2. Apple transitioning from Luca Maestri as CFO to Kevan Parekh is being viewed as a modest negative, according to most of the Wall Street research notes. Club name Apple described the move as a planned succession. Maestri, who spent 10 years as finance chief, will continue to lead teams focusing on IT, security, and real estate development. The change happens on Jan. 1.
3. Club holding Eli Lilly on Tuesday released a new form-factor of Zepbound for half the price, in hopes of widening demand. The cheaper version of Lilly’s GLP-1 weight loss drug won’t come in the easy-to-use injection pens. It will be in single-dose vials, requiring a syringe and needle to draw up the medicine.
4. Truist raised its price target on Club name Nvidia to $145 per share to $140 and kept its buy rating on the stock ahead of Wednesday’s after-the-bell earnings from the AI chipmaker. The analysts said delays in Nvidia’s next-generation Blackwell chip platform is “more likely supply chain noise than reality.”
5. Barclays thinks that Club stock Salesforce will have a muted response when it reports earnings late Wednesday. The analysts cited a “lack of a meaningful positive catalysts.” Is ServiceNow everyone’s favorite enterprise software name? I think so, because it is embedded in AI.
6. Temu-parent PDD losing nearly 29% is a wake-up call for Chinese stocks. JD.com announced a $5 billion buyback. Before that, JD took a hit on Walmart selling its stake in the Chinese online retailer.
7. Evercore ISI raised its Netflix price target to $750 per share from $710. The analysts, who kept their outperform buy rating, said their survey work in the U.S. and Mexican markets show Netflix’s “competitive position remains as strong or stronger than ever.”
8. MKM analysts upgraded Club name Coterra Energy to buy from hold and raised its price target on the oil and natural gas producer to $29 per share from $25. They called out Coterra’s solid balance sheet.
9. Goldman Sachs cut its 2025 forecast for Brent crude to $77 per barrel from $82 previously, due in part to expectations of more U.S. supply. Brent, the international oil benchmark, was modestly lower Tuesday, trading at $81 a barrel.The U.S. oil benchmark, West Texas Intermediate crude, also dropped Tuesday to around $77.
10. Natural gas prices dropped below $2 per million BTUs on concerns about lower demand and oversupply. So far in August, nat gas has dropped nearly 6%, on pace for its second straight negative month. Prices dropped almost 22% in July.
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