Market Update – Monday, July 28
On July 28, President Trump announced a new trade agreement with the European Union. While most imports from the EU face a 15% tariff, the 50% tariff on steel remains unchanged.
As for Wall Street, it’s looking at a modest profit this morning. There are several important revenue reports coming up, along with data from Federal Reserve conferences, employment figures, and upcoming deadlines related to trade.
In other news, Morgan Stanley has raised the price target for Honeywell to $250 per share from $225. Analysts are optimistic, suggesting that the current challenges facing Honeywell’s Aerospace Division will only be temporary. I actually supported Honeywell in a column for club subscribers on Sunday.
JPMorgan’s Matt Boss made headlines by upgrading Nike’s rating from neutral to overweight, while also increasing its price target from $64 to $93. He sees positive momentum, but I still have my reservations about competition and potential layoffs in the near future.
Tesla has signed an impressive $16.5 billion deal with Samsung to produce next-gen AI chips in Texas. This seems to put it in direct competition with Nvidia, and it might negatively impact Nvidia’s stock today.
Cisco sees a downgrade to comparable ratings from Evercore ISI after a significant stock run. Analysts believe it will struggle to grow valuations without clear AI revenue gains. Personally, I think Cisco is poised well in the AI sector.
Wolfe Research upgraded Texas Instruments from hold to buy, as chipmakers may be nearing the end of their investment cycle. Despite previous revenue drops, the latest quarter wasn’t as troublesome as many initially feared.
Meanwhile, Cantor Fitzgerald downgraded Centene from overweight to neutral. July has been tough for stocks, particularly after insurance companies cut their guidance, but I feel like the worst might be behind us now.
UBS indicated that Amazon is the “most coiled” stock among its coverage, raising its price target from $249 to $271. Amazon’s earnings report is due Thursday night alongside Clubstock Apple, while Meta and Microsoft will share their results on Wednesday evening.
Lastly, Citigroup raised Jacobs’ price target by nearly 13% to $166 while maintaining its buy rating for the engineering and construction sector. This aligns with beneficial policy changes linked to “Big Beautiful Bill.”
I send out my top ten thoughts via a market email newsletter, where I share insights like these. Note that I usually wait 45 minutes after a trade alert before acting on any stock purchases in the Charitable Trust portfolio. If stocks come up on CNBC, I’ll wait a full 72 hours after issuing an alert before making any moves.
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