An employee walks through the parking lot at a Broadcom office on June 03, 2021 in San Jose, California.
Justin Sullivan | Getty Images News | Getty Images
My top 10 things to watch Monday, Feb. 12
1. U.S. stock futures were flat early Monday, following last week’s record-setting close for the S&P 500. The broad-based market index closed above 5,000 for the first time. The three major averages are on a run of five consecutive weeks of gains. Here are five things that could determine if the winning streak continues.
2. Shale producer Diamondback Energy said it would buy Endeavor Energy Partners, the largest privately held oil and gas producer in the Permian Basin, in a cash-and-stock deal valued at roughly $26 billion. The transaction will consist of 117.3 million shares of Diamondback common stock and $8 billion of cash.
3. Wells Fargo lowered its price target on CVS Health to $83 from $84 and kept a hold rating. The firm said the drug-store chain reported solid fourth-quarter results but said greater visibility on Medicare Advantage utilization and rates remains key.
4. Donald Trump is proposing a 60% tariff on all Chinese imports. What would be left? It would shrink a $575 billion trade pipeline to close to zero, according to a Bloomberg analysis.
5. Bank of America says don’t worry about the near-term impact of Nvidia expansion on Broadcom. The firm was responding to media reports that Nvidia might expand into making more customized chips, also known as ASIC, for the telecom, auto, gaming, and data center markets — which are currently dominated by Broadcom and Marvell.
6. Discount retailer Big Lots downgraded to sell from hold at Loop Capital. These guys are in big trouble, and so is Children’s Place. Loop said Big Lots has lost “substantial consumer relevance and mindshare,” which is “very difficult” to regain. Shares fell more than 11% in the premarket.
7. Instacart price target lowered by a buck to $30 at Bank of America. The grocery delivery service reports earnings on Tuesday (Feb. 13) — will this be another bust?
8. Barclays downgraded Rivian to hold from sell. The firm said the electric vehicle has a great product and technology but it is not enough to avoid slowing demand in the EV market. It lowered the price target to $16 from $25. Shares fell more than 3% Monday morning.
9. Lowe’s upgraded to sell from hold at JPMorgan, which raised its price target to $265 from $210. The firm also added the home improvement retailer to its analyst focus list as a value stock idea, citing moderating wallet headwinds. I prefer Home Depot because of the professional demand.
10. DuPont price target lowered to $70 from $74 at Barclays, kept an equal weighting. The firm said the company’s fourth-quarter results and guidance were generally consistent with its preannouncement.
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.