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My top 10 things to watch Monday, April 28
1. Wall Street is anticipated to experience a subdued opening today following last week’s rally. It is a significant earnings week for major players like Meta Platforms, Amazon, Microsoft, and Apple. A key focus will be on how companies can manage tariff impacts amidst the upcoming jobs and inflation reports.
2. Treasury Secretary Scott Bessent mentioned in an interview with CNBC that the responsibility to ease trade tensions lies with China. He noted that several nations have presented promising trade proposals, hinting at a forthcoming agreement with India, where Apple is keen to relocate its iPhone production.
3. The decline in Alphabet’s stock on Friday can be attributed to disappointing earnings, revealing the lowest growth in paid clicks in the company’s history. In my recent analysis, I delved into strategies for selecting stocks and explained my decision to divest from Google’s parent company.
4. JPMorgan is optimistic about Eli Lilly ahead of its earnings report on Thursday. Analysts highlighted the positive results of Lilly’s daily obesity pill, orforglipron, in late-stage trials for Type 2 diabetes, along with strong sales for its injectable obesity medication, Zepbound. Consequently, JPMorgan has maintained an overweight buy rating on the stock.
5. In the retail sector, JPMorgan’s analyst Matt Boss suggested that consumer spending remains robust. He specifically mentioned the potential of Club name TJX Companies and other brands like Ralph Lauren, Gap, Urban Outfitters, and Levi Strauss.
6. Conversely, Barclays has reduced Ralph Lauren’s price target due to short-term concerns about specialty retail, which is facing pressure from rising costs that are impacting margins. Despite this, they continue to hold an overweight buy rating on the brand.
7. Barclays has placed Kohl’s on an underweight sell rating, expressing that increased tariffs complicate the company’s operational landscape. They assigned Macy’s an equal weight hold, recognizing its strategic approach while expressing apprehension about the broader department store sector.
8. Citi has upgraded Swiss sneaker manufacturer On Holding to a buy rating. Although the company faces challenges from currency fluctuations and tariffs, analysts believe it is well-positioned to handle economic volatility, a significant perspective given the common misconception that foreign stocks are too risky due to these factors.
9. Bernstein has raised its rating for Boeing to outperform and increased its price target from $181 to $218 per share. Analysts are encouraged by the aircraft manufacturer’s progress in addressing its operational challenges.
10. Bank of America has also boosted its price target for Take-Two Interactive from $210 to $250 per share, maintaining a buy rating. This is largely driven by anticipation surrounding a new edition of Grand Theft Auto (GTA), with the stock rising by $50 in the lead-up to its release.
Source
www.cnbc.com