My top 10 things to watch Friday, Aug. 14 — Club portfolio director Jeff Marks wrote today’s newsletter. 1. Stocks are headed for a mixed open following Thursday’s record S & P 500 close. Oil is slightly higher after Treasury Secretary Scott Bessent said in an interview with Newsmax that the U.S. is preparing economic measures against Iran that “have never been seen.” Bond yields are steady after yesterday’s second tepid inflation report of the week. 2. Applied Materials posted strong earnings but failed to meet high short-term expectations, sending the stock down nearly 6% this morning. Sales were up 25% year over year, and adjusted earnings per share (EPS) came in at $3.50 versus the $3.42 expected. The semiconductor equipment maker guided revenue to $10.25 billion and adjusted EPS to $4.02. 3. Sandisk shares are extending Thursday’s big gains after a bullish analyst meeting. The stock is up another 6% after yesterday’s 13.7% surge. JPMorgan put a buy rating on Sandisk, citing how the company’s long term agreements reset margins higher and reduce cyclicality. The stock was previously not rated at JPMorgan. Our newest Club stock Micron is also up this morning in the memory trade. 4. Reddit shares are surging 11.5% in the premarket this morning after getting the call to the show. It will replace AvalonBay Communities Inc. in the S & P 500 on Aug. 18. It’s a welcome rally for Reddit, which has been struggling this year. The stock was down more than 30% year to date as of yesterday’s close. 5. Cowen said Workday is worth about $230 per share in a takeout. Shares surged early 18% late Thursday after Reuters reported the HR software company is in talks with Silver Lake to be acquired. Workday shares are modestly lower this morning. Enterprise software has been hurt on AI disruption fears. 6. RBC Capital raised its price targets on our two cyber stocks. Analysts raised Palo Alto Networks to $434 per share from $330 and CrowdStrike to $256 from $188.75. The price target bumps came ahead of earnings from each, which will be out in a few weeks. 7. Capital One is reiterated as TD Cowen’s top pick in credit cards. The analysts expect the stock will be a strong performer in the second half of the year from accretion of the Discover deal and strong buybacks, which will support improvement in return on tangible equity (ROTE). During yesterday’s August Monthly Meeting, we decided to hold on to Capital One. We also updated our views on the rest of the portfolio. 8. T-Mobile was downgraded at Wolfe Research to hold from buy, citing “new pressures” from AT & T , Verizon , and cable companies making mobile device offers. The analysts said that SpaceX ‘s satellite internet service Starlink could hurt T-Mobile’s wireless offerings. Wolfe said that investor expectations for T-Mobile are too high. 9. Wayfair was upgraded to buy at Bernstein on more signs of durable growth. The analysts also raised their price target to $125 from $100. Shares of the online retailer are up 5% this morning, extending what’s been a strong rally this month since earnings. In recent years, however, the stock has struggled, worth less than a third of its record high close of $345 in March 2021. 10. Fox was upgraded by JPMorgan and Wells Fargo to their buy rating and raised their price targets. Analysts at both shops are positive on the Roku acquisition. Wells Fargo called Roku a “growth/cash machine” for Fox. The network is coming off the World Cup, which is expected to be a boost to earnings. 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.
The Club’s top 10 things to watch in the stock market Friday