My top 10 things to watch Thursday, Feb. 23
1. Nvidia (NVDA) AI is basically the only high-end artificial intelligence platform. Total addressable market in AI: $300 billion hardware and $300 billion software. Better-than-expected quarter and guidance. Shares of Club stock, which lost about 50% last year, jumped 10% early Thursday. Nvidia was already one of our best performers in 2023: up 42% this year, as of Wednesday’s close.
2. Club names Coterra Energy (CTRA) and Pioneer Natural Resources (PXD) deliver quarters that surprised to the upside, pushing their stocks higher. Both lower quarterly fixed-plus-variable dividends. Guidance provided by Coterra and Pioneer echoed that of Devon Energy (DVN): softer production but higher capital expenditures in 2023.
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3. The Dow and the S&P 500 look to break their respective two-session and four-session losing streaks. A higher Nasdaq close would be a back-to-back gain after a three-day losing run. The government’s second estimate of fourth-quarter U.S. economic growth was slightly lower than the initial reading and economist expectations. The GDP price index was revised slightly higher.
4. I’m at a JPMorgan branch in Philadelphia on Thursday. I’ll find out if they will do to its mortgage bank division what Club holding Wells Fargo (WFC) did Wednesday night. Wells Fargo laid off hundreds of mortgage bankers as part of its shift away from parts of the home loan business. Part 1 of my interview with JPMorgan CEO Jamie Dimon live on CNBC at noon ET. Part 2 later on “Mad Money.”
5. Toll Brothers (TOL) sees price target hike at Raymond James to $67 per share from $61. Really an amazing quarter.
6. Chinese e-commerce and tech giant Alibaba (BABA) better-than-expected quarter. I swear they’re allowed to make up whatever number they want as profits were caused by cost cuts. The stock up 6%.
7. Multiple price target bumps for Chinese language search platform Baidu (BIDU). Again fictional?
8. JPMorgan likes Merck (MRK) for the work with Moderna (MRNA) to have personalized skin cancer vaccine.
9. Etsy (ETSY), online marketplace for homemade products, has surprising retention and doing well around the globe, including India and Germany.
10. Cowen takes eBay (EBAY) price target down to $46 per share from $48. Just not enough earnings power here but going for growth. What are they really going for?
(Jim Cramer’s Charitable Trust is long NVDA, CTRA, PXD, DVN, WFC. See here for a full list of the stocks.)
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