On Thursday, September 11, Wall Street seemed set for a higher opening than previously. This might contribute to the S&P 500 reaching yesterday’s record high. The probability of a half-point interest rate cut has risen, and bond yields remain low.
Following the wholesale inflation numbers from yesterday, the August consumer price index indicated more retail inflation than anticipated. Additionally, weekly unemployment claims were worse than expected. These signs of weakening in the labor market have heightened expectations for three Fed rate cuts by the end of the year.
In other news, Nvidia received an upgrade to a buy rating from Da Davidson, having previously held a neutral stance. They are now more optimistic about AI demand, which seems to quash previous concerns over competition with custom chips and difficulties in China.
Something that might have been overlooked this week: Nvidia introduced a new chip optimized for running AI workloads called inference, rather than just training. Semianalysis referred to this as another significant advancement that solidifies Nvidia’s lead over competitors like AMD and Broadcom. I find the specifications of this chip quite impressive.
On the flipside, Da Davidson downgraded Apple from buy to neutral. Analysts feel the new iPhone lineup lacks excitement, and the AI features that Apple needs for a significant refresh aren’t expected soon. Hearing all these ups and downs, I thought, “Own it, don’t trade it.”
Bank of America downgraded UPS from neutral to underperform at a time when the De Minimis exemption is coming to an end. The future of its dividend, which stands at 7.8%, is uncertain. While the company intends to maintain it, I’m skeptical about the sustainability given the need to conserve cash.
Meanwhile, Thermo Fisher has been upgraded from equal weight to overweight by Barclays, with analysts raising the price target from $490 to $550 per share. They mentioned that life science stocks from the company look attractive, and overall market demand remains stable. I’m starting to appreciate Thermo more, especially compared to Danaher, which I already own.
UBS remarked that Autozone’s investments in stores and supply chains have positioned it well for gaining market share. They’ve increased the stock’s price target from $4,260 to $4,925 while keeping a buy rating.
Morgan Stanley is growing more positive about Robinhood after attending a summit in Las Vegas, although they maintain their existing rating. Analysts believe that the pace of innovation will help attract more users and sustain revenue growth over the years.
Mizuho Securities has raised price targets for several real estate investment trusts (REITs), including Real Estate Income. They adjusted the price target from $60 to $63 while keeping a neutral rating. I find that name appealing.
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