My top 10 things to watch for on Wednesday, August 28: 1. Wall Street headed for a slightly lower open after the Dow closed at another record and the S&P 500 came within a whisker of one, too. The Nasdaq was still about 5% off its all-time high. In a Tuesday commentary, we examined why investors are flocking to technology stocks as the Fed prepares to cut interest rates next month. 2. Club holding Nvidia will report earnings after the market closes on Wednesday, which has been mistakenly seen as a pivotal moment for the club chipmaker and the overall market. Expectations are beyond good and evil: a $2 billion surprise in the reported quarter and a $2 billion increase in guidance for the current quarter. Investors also want reassurance that we don’t have to worry about delays to the next-generation Blackwell chip platform. 3. Club holding Salesforce also reports quarterly results Wednesday night. Can it join ServiceNow as the other company that has figured out how to use artificial intelligence to benefit its customers, rather than just talk about it? Key to Salesforce’s call will be a comment on the pace of deal activity, which was described as “measured” last time. 4. Wells Fargo started Danaher with a hold-equal-weight rating and a price target of $280 per share. Analysts see more downside than upside. I disagree. This club name is finally ready for the earnings breakout that was delayed for years by Covid and China. 5. Foot Locker CEO Mary Dillon is finally getting her turn based on reduced inventory, better same-store sales and very good selection of Nike, Adidas and New Balance. The sneaker chain reported a narrower-than-expected quarterly loss and slightly better-than-expected revenue, but kept its full-year guidance the same. Despite the improving picture, the stock lost more than 7%. Perhaps due to profit-taking, as the stock is up 24% in the past month. 6. Is Nordstrom back? Just a measly $1 per share increase in the price target to $20 by well-known JPMorgan retail analyst Matt Boss. He maintained his underweight sell rating on the stock. I think if you split the stock into the department store and outlet business, it would be worth a lot more. Late Tuesday, Nordstrom beat its earnings forecast but gave a cautious outlook. 7. PVH shares sank 8% on the fashion company’s weak guidance. That was quite surprising because Tommy Hilfiger and Calvin Klein were looking good. Wells Fargo cut its price target to $130 per share from $145 but maintained its overweight buy rating on the stock. 8. SentinelOne reported financial results. I would have expected more if this company really challenged CrowdStrike, which reports after the market closes Wednesday. But analysts are happy with SentinelOne and have raised price targets. In cybersecurity, we own Palo Alto Networks, which has pulled back a bit after a jump in earnings earlier this month. 9. Stay away from server maker Super Micro Computer. The allegations made by Hindenburg are extraordinarily negative. This is not a stock with a $32 billion market cap and it’s losing share to Dell. We’re in a rotation that’s anti-technology. But Dell reports after the market closes Thursday, and I think Super Micro’s upcoming losses are Dell’s gains. 10. Warren Buffett continues to sell shares of Bank of America. Is he creating a very good opportunity in a bank with a stock that should be much higher? BofA is down about 5% over the past month but is still up nearly 18% for 2024 as of Tuesday’s close. Sign up for my free email newsletter, Top 10 Morning Thoughts on the Market (see a full list of stocks at Jim Cramer’s Charitable Trust here). As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after he issues a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has discussed a stock on TV on CNBC, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS AND WILL NOT BE CREATED BY RECEIVING INFORMATION RELATED TO THE INVESTING CLUB. NO PARTICULAR RESULT OR PROFIT IS GUARANTEED.
My top 10 things to see on Wednesday, August 28th
1. Wall Street headed for a slightly lower opening price after the Dow closed at another record and the S&P500 came even a breath away from one. The Nasdaq was still about 5% off its all-time high. In a commentary on Tuesday, we examined why investors are moving into technology stocks as the Fed prepares to cut interest rates next month.
2. Club name NVIDIA is scheduled to report earnings after the market close on Wednesday, which was mistakenly seen as a pivotal moment for the chipmaker club and the overall market. Expectations are beating expectations: a $2 billion surprise in the reported quarter and a $2 billion increase in guidance for the current quarter. Investors also want reassurance that they won’t have to worry about delays in the next generation of the Blackwell chip platform.
3. Club participation Salesforce Salesforce will also report its quarterly results on Wednesday evening. Can Salesforce become the second company, alongside ServiceNow, to figure out how to use artificial intelligence to benefit its customers, rather than just talk about it? Key to Salesforce’s call will be a comment on the pace of business activity, which was described as “moderate” last time.
