Global Markets Brace for BOE Rate Decision Amid Corporate Earnings Season

EMEA Morning Briefing : Markets Brace for BOE Rate Decision, Corporate Earnings

Manufacturing PMI data for EU, U.K., Germany, France, Italy; U.K. BOE rate decision; Unemployment data for EU, Italy; Trading updates from Societe Generale, Barclays, Shell, Credit Agricole, Schroders, Atos, AB InBev, Volkswagen, Daimler Truck Holding, BMW, Ferrari, Rolls-Royce Holdings, Pirelli, Hugo Boss, MTU Aero Engines, DHL, Deutsche Post, Merck, Veolia Environnement, Salvatore Ferragamo, Vanquis Banking Group, BAE Systems, Haleon, Serco Group, Smith & Nephew, London Stock Exchange Group, Melrose Industries, ING, Next, Vanquis Banking Group, Cellnex Telecom, Nexi, Wizz Air Opening Call: European shares could track slightly higher ahead of the Bank of England rate decision. Asian stock benchmarks were lower; the dollar weakened slightly; Treasury yields were steady; while oil and gold futures gained. Equities: European stock futures edged higher as investors await a slew of corporate earnings and the BOE's interest rate decision. Investors are watching to see if the BOE gets ahead of the Fed in lowering borrowing costs. "Financial markets reckon Thursday's Bank of England meeting is a 50:50 call between the first rate cut and another 'on hold' decision," said strategists at ING. "We're leaning toward a cut, though we agree nothing is for certain." U.S. stocks rallied after the Fed held interest rates steady and Chair Jerome Powell signaled the central bank is prepared to cut them in September if inflation keeps moving lower. "I would say his [Powell] comments were positive for the rate-cut camp, which puts rate-sensitive stocks on the radar in terms of what can continue to do well," said Bret Kenwell, U.S. investment analyst at eToro. Meanwhile, a private gauge of China's factory activity declined to 49.8 in July from 51.8 in June, falling into contraction territory for the first time in nine months. Forex: Sterling could weaken if the BOE cuts interest rates as this is only partly priced in by markets, TD Securities said. The BOE is likely to cut rates by 25 basis points with a narrow 5-4 vote, although uncertainty is high due to sticky services inflation and compositional changes in the Monetary Policy Committee, it said. Irrespective of the decision, TD analysts say they aren't too positive on sterling as long positions--or bets on it rising--look crowded and it appears expensive on TD's fair value model. Monex Europe said the sterling could rally if the BOE leaves interest rates unchanged as the consensus forecast is for a rate cut. "If we are right then the surprise to consensus would imply a decent upside move for sterling, with 1.30 potentially in range for GBP/USD, with 1.20 similarly on the table for GBP/EUR," it said. Bonds: Yields on U.S. government debt finished broadly lower on Wednesday after the Fed left interest rates unchanged and appeared to lay the groundwork for an interest-rate cut in September. Fed-funds futures traders have priced in a 100% probability of at least a quarter-point rate cut by September, and a total of three cuts before year-end, according to the CME FedWatch Tool. "The pace of easing will depend on resilience in the labor market, inflation dynamics, and fiscal policy post-election," said Goldman Sachs Asset Management. Energy: Oil rose, aided by worries over a potential widening in the Middle East conflict that could lead to supply disruptions. Crude oil prices have bounced somewhat, Citi Research analysts said, noting that Mideast tensions have ticked higher on apparent Israeli strikes in Lebanon and Iran, which could scupper cease-fire efforts and result in retaliatory actions. Metals: Gold gained in Asia. Prices are expected to be supported by potential Fed rate cuts in the coming months, said Joseph Dahrieh, Managing Principal at Tickmill. Also, lower U.S. Treasury yields have made the precious metal more appealing as this reduces the cost of holding non-yielding assets, Dahrieh added. -- Copper prices gained amid strong buying, ANZ Research analysts said. The metal's prices have been at a lower level due to a weak demand outlook, which has likely provided some chances for investors to buy, they said. There are also some positive signs of narrowing export parity and retreating inventories. -- Iron-ore futures were higher. Its recent decline was driven by weak sentiment on black metals rather than the fundamentals of iron ore, Galaxy Futures said. Huatai Futures analysts said they expect prices to stay volatile and relatively weak in the near term, as port inventories remain at historically high levels. Federal Reserve Chair Jerome Powell said officials could cut interest rates at their meeting in September, moving closer to a new phase that seeks to avoid weakness in the labor market in the midst of signs inflation is heading lower. While Powell and his colleagues didn't commit to any such move when they held rates steady on Wednesday, he appeared to suggest during a news conference after the meeting that a cut was more likely than not. Brace for Knife-Edge Rate Decision as U.K. Debates Getting Ahead of the Fed The Bank of England will announce an interest rate decision Thursday that's likely to be the most significant since 2021. The question is whether it gets ahead of the Federal Reserve in lowering borrowing costs. It could be a close call. Economists surveyed by FactSet predict that policymakers will move the benchmark rate to 5% from 5.25%, the highest level since 2008 and where it has stood for a year. But with some measures of inflation still running hot and the Fed deciding to wait until at least September before cutting, they may also choose to keep the rate unchanged. September Rate Cut Would Thrust Fed Into Brutal Election Campaign By opening the door wider to an interest-rate cut in September, the Federal Reserve is on a crash course with the presidential election. For a central bank that judiciously aspires to stay above the fray of partisan politics, confronting a potential policy shift around election time amounts to a lose-lose. Delivering a rate cut ahead of the election could rile up Republicans and former President Donald Trump, but withholding a needed reduction could undermine the economy and upset Democrats. Killing of Two Israeli Enemies Puts Middle East on Brink of Wider War A pair of provocative strikes that killed enemies of Israel has pushed the Middle East to the brink of a wider war the U.S. has worked hard to head off. On Tuesday night, an Israeli airstrike in Beirut killed a top official with Hezbollah, setting off concerns that the Lebanese militant group would feel compelled to respond. Hours later, after midnight, Hamas political leader Ismail Haniyeh was killed in a mysterious strike in Tehran, vastly complicating the calculus and raising concerns about a regional escalation to some of their highest levels in nearly 10 months of war in Gaza. U.S. Looks for Ways to Revive Gaza Cease-Fire Talks WASHINGTON-The Biden administration is scrambling to salvage prospects for a Gaza cease fire after the political leader of Hamas was killed in a strike in Tehran, dealing a potentially fatal blow to the talks and leaving officials worried that Israel may now face major retaliatory attacks on two fronts. On Tuesday, Israel said it was responsible for an airstrike in southern Beirut that killed a senior leader of Lebanon-based Hezbollah. Hours later, Ismail Haniyeh, one of the key negotiators in the long-stalled cease-fire talks, was dead in a mysterious strike in Iran's capital. Meta's AI Costs Surge as Digital Advertising Revenue Grows Meta Platforms on Wednesday said quarterly digital advertising grew rapidly while the company's investments in artificial intelligence and the so-called metaverse weighed on profits. The company's rising expenses have come as a result of its all-in approach toward capitalizing on the AI boom sweeping the tech industry. Meta increased its minimum spending guidance for 2024, and its capital expenditures surged about 33% after the company said in April that costs would rise by up to $10 billion for infrastructure investments to support its AI ambitions. Apple earnings will be all about this one clue Apple Inc.'s June-quarter earnings report isn't typically one to write home about, but there's still value to it. Investors aren't too concerned at this point in the year with how much revenue Apple AAPL made from its last iPhone model. By the summer, Wall Street is already thinking about the sales potential of the soon-to-be-launched version. Amazon earnings come with a higher bar this time around Is Amazon.com Inc.'s AWS cloud-computing business in a tougher spot after its upbeat performance in the first quarter? At least when it comes to investor expectations, there may be a higher bar going into Amazon's AMZN Thursday-afternoon report.

Wall Street Lunch:

Boeing hired Kelly Ortberg as its next CEO, facing challenges with manufacturing and quality issues. Listen below or on the go on Apple Podcasts and Spotify The Federal Reserve keeps rates unchanged, brings more focus to jobs market. (0:14) Fed chief Jay Powell says September cut is on the table. (0:50) Stocks rally, led by the Nasdaq. (1:52) The following is an abridged transcript: It's the return of the dual mandate. The Federal Reserve kept rates steady at 5.25%-5.5% as expected today - without any dissent -- while indicating that inflation may no longer be the 500-pound gorilla driving monetary policy. In its statement the FOMC said it "is attentive to the risks to both sides of its dual mandate." That's a change from the last statement where the Committee said it "remains highly attentive to inflation risks." Markets remain confident that the Fed will start easing in September, with odds that the Fed could even cut by half a point nearing 15%. At his press conference, Fed Chairman Jay Powell said that a rate cut at the next meeting is "on the table" but reiterated FOMC members still want more good data. Banging the dual mandate drum, he said recent employment data points are going in the right direction and "it looks like an economy that is normalizing." "We need to weigh the risks of employment and the risks of the inflation target more equally than we did a year ago." Pantheon Macroeconomics says the Fed is fretting more about labor market risks, but it has "laid the foundations for a September easing, provided the next two CPI reports give no cause for alarm." Tom Graff, CIO at wealth manager Facet says if the Committee weren't 95%-plus sure of a cut in September, Powell wouldn't have spoken "this frankly. So basically, the FOMC agreed today that it is time to cut, barring a BIG surprise." Economist Ernie Tedeschi sounded cautious, though, saying: "The Federal Reserve is really putting a lot of faith in the hypothesis that the long and variable lags are asymmetrically shorter when cutting rates." In the markets, Treasury yields bounced around, but moved lower as Powell spoke. The 5-year yield (US5Y) dropped below 4% for the first time since February. Stocks had been rallying throughout the day and got an initial Fed bounce. The Nasdaq (COMP.IND) was fighting for its first 3% rally in two-and-a-half years as Powell wrapped up the Q&A. But the not unusual last-hour profit-taking took the major averages off their highs. In economic data that came in before the Fed decision, there was more to digest on labor and salaries. The Q2 Employment Cost Index was soft, up +0.9% vs. +1.0% consensus and 1.2% prior in Q1. Wages eased back to a 0.9% rise from 1.1%. That was the smallest rise in three years. Wells Fargo economists said: "We expect employment costs to slow further ahead. As demonstrated in yesterday's JOLTS report, employee retention has greatly improved, while waning demand for workers and growing pool of unemployed workers are lessening the extent to which employers need to raise compensation to retain existing or attract new workers." Ahead of Friday's jobs report, ADP said its measure of July private payrolls rose by 122,000, well below the 154,000 expected. But it's reliability as a predictive indicator is regularly questioned. Among active stocks today, Altria (MO) said revenue fell 4.6% year-over-year to $6.21 billion. The drop was primarily driven by lower net revenue in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment. Total cigarette revenue in Q2 fell 13% to $17.9 billion. Looking ahead, Altria narrowed its guidance for full-year adjusted EPS to be in a range of $5.07 to $5.15 vs. $5.10 consensus. The EPS guidance range includes planned investments, such as marketplace activities supporting smoke-free products and continued smoke-free product research. AMD (AMD) impressed with its results, but analysts are skeptical shares can climb back to the $180s, where they stood a few weeks ago. Barclays analyst Tim O'Malley said: "The stock in the $140s bakes in very little incremental uplift in the DC GPU platform next year, and we see AMD working in a catch-up trade ahead of other AI names as we get more positive capex commentary." Also in the sector was a report that certain allies will be excepted from a new rule next month expanding the reach of the U.S. to halt exports of chip equipment from some foreign nations to Chinese companies. Reuters says allies that export vital chipmaking parts, such as Japan, the Netherlands and South Korea, will be excluded. And Humana (HUM) stumbled as it cut full-year GAAP EPS guidance to 'approximately $12.81' from 'approximately $13.93' previously. For the full year, the company reaffirmed its adjusted EPS target of ~$16, shy of the consensus estimate of $16.34 a share. In other news of note, Boeing (BA) said it had hired Kelly Ortberg as its next chief executive. He oversaw one of the aviation giant's major suppliers, Rockwell Collins, until a 2018 merger with another aerospace company that later became part of RTX (RTX). Ortberg has a reputation on Wall Street as a dealmaker, according to The Wall Street Journal. He worked closely with airlines and the Department of Defense before retiring in 2021. Boeing is working to overcome manufacturing challenges, quality issues and the possibility that some workers will go on strike amid negotiations over a new labor contract. Since 2020, the company has lost about $25 billion and its cash burn recently has been more than $1 billion a month. Today, the company reported a loss of $1.44 billion in the second quarter, partly because of delays with replacing Air Force One and difficulties with defense programs. And in the Wall Street Research Corner, strategist Brian Belski of BMO Capital Markets is out with his favorite high-yield dividend stocks, predicting a rebound in the group. Income stocks have been under pressure due to higher-for-longer rates, but Belski says recent relative strength in these names is likely to persist in upcoming months. Historically, high dividend yield stocks outperform the S&P 500 by more than 20% from the trough to the peak in relative year-over-year total returns. Also, they keep their above-average outperformance levels for about 22 months after the peak with an average annualized relative total return of 9%. Among the picks are AbbVie (ABBV), Chevron (CVX), Gilead Sciences (GILD), Newmont (NEM) and EOG Resources (EOG). Wall Street Breakfast, Seeking Alpha's flagship daily business news summary, is a one-page summary that gives you a rapid overview of the day's key financial news. It is designed for easy readability on the site or by email (including mobile devices), and is published before 7:30 AM ET every market day. Wall Street Breakfast's readership of over 3.4 million includes many from the investment banking and fund management industries. Sign up here to receive the Wall Street Breakfast in your inbox every business day.Check out our Podcast RSS feed

Jim Cramer's top 10 things to watch in the stock market Wednesday

My top 10 things to watch on Wednesday, July 31 1. Wall Street was tracking for a higher open, with Nasdaq looking especially strong one day after a rough session. The S & P 500 was also lower Tuesday. The Dow finished higher. On the final trading day of July, the Dow was the big winner for the month and the Nasdaq was the big loser. The S & P 500 could turn positive for July if early gains hold at the close. Federal Reserve commentary and reaction to earnings hold the keys to trading Wednesday. 2. The two-day July meeting of central bank policymakers ends at 2 p.m. ET. No interest rate change is expected. Fed Chairman Jerome Powell holds his post-meeting news conference at 2:30 p.m. ET. Investors will be listening for language about how elevated rates are starting to impede economic growth. The market expects three rate cuts this year, starting in September. Hiring at U.S. companies slowed in June, according to ADP. That supports the case for Fed cuts. The government's employment report is out Friday. 3. There's a lot of misinformation about Club name Microsoft , which did not warn on Azure. The stock dropped nearly 2%. The cloud experienced a momentary downtick in what will be an uneven road that might depend on whether Microsoft can get enough computing power to make the numbers. No question about spending because customers demand it. Opposite of Alphabet CEO Sundar Pichai and his ill-advised conference. We upgraded Microsoft , which had a good quarter, to our buy-equivalent 1 rating. 4. Starbucks is getting better at retaining customers. But the funnel for the occasional user is not good. China remains a disaster . Going to smaller cities where there remains plenty of white space. The stock gained 4.5% on a better-than-feared quarter, which was we were banking on when we added to our position Monday. Starbucks' turnaround took an encouraging step forward, but it's not out of the woods yet. 5. Advanced Micro Devices shows not that it is catching up to Nvidia but it is catching up to demand. Guides up by $500 million. Artificial intelligence demand is growing fast with so many customers wanting powerful chips. The nearly 7.5% jump in AMD shares on strong earnings validates our decision to reinvest in the stock. Despite the positive results, we lowered our price target by $10 to $200 per share to reflect the lower multiples the market is giving tech and semiconductor stocks. We reiterated our 1 rating. 6. As of Tuesday's close, Nvidia has now lost nearly $800 billion in market cap since its mid-June peak at $3.33 trillion. The Club stock was adding roughly 7% after losing the same Tuesday. Morgan Stanley analysts name Nvidia a top pick. Nvidia is set to report earnings Aug. 28. Elsewhere in tech, Club stocks Meta Platforms reports earnings Wednesday evening. Apple and Amazon are out after Thursday's close. 7. Club name DuPont issued a major guide higher; led by semiconductor materials. The stock rose more than 4.5%. The green shoots turned out to be real. Water orders from China were meaningful. Club name DuPont announced in May that it will break up into three companies over the next 18 to 24 months. Our last DuPont buys were in June. Club names Eaton and Linde report earnings before Thursday and Friday's opens, respectively. 8. Club name GE Healthcare can't get around China, still. Do these guys know what they are doing? It is why we sold a lot of it Tuesday. They may be the worst when it comes to hoping for China. Blamed delayed China stimulus. The stock lost more than 3%. Overall, GEHC beat on quarterly earnings and missed on revenue. 9. It's not clear how bad Pinterest really is. If you go over Google's number, people are wondering about advertising and whether it is weak or not. I think it isn't. Google does have subscriptions though, not just ads. Pinterest is just ad-supported and expectations got ahead of themselves. Pinterest shares fell 9.5%. 10. Boeing reported a wider-than-expected quarterly loss and weaker revenue. Despite the struggles, the stock rose 1%. The aircraft maker said it hired aerospace industry veteran Robert "Kelly" Ortberg to become its next CEO. Ortberg is coming out of retirement and will start Aug. 8. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. 1. Wall Street was tracking for a higher open, with Nasdaq looking especially strong one day after a rough session. The S&P 500 was also lower Tuesday. The Dow finished higher. On the final trading day of July, the Dow was the big winner for the month and the Nasdaq was the big loser. The S&P 500 could turn positive for July if early gains hold at the close. Federal Reserve commentary and reaction to earnings hold the keys to trading Wednesday. 2. The two-day July meeting of central bank policymakers ends at 2 p.m. ET. No interest rate change is expected. Fed Chairman Jerome Powell holds his post-meeting news conference at 2:30 p.m. ET. Investors will be listening for language about how elevated rates are starting to impede economic growth. The market expects three rate cuts this year, starting in September. Hiring at U.S. companies slowed in June, according to ADP. That supports the case for Fed cuts. The government's employment report is out Friday. 3. There's a lot of misinformation about Club name Microsoft, which did not warn on Azure. The stock dropped nearly 2%. The cloud experienced a momentary downtick in what will be an uneven road that might depend on whether Microsoft can get enough computing power to make the numbers. No question about spending because customers demand it. Opposite of Alphabet CEO Sundar Pichai and his ill-advised conference. We upgraded Microsoft, which had a good quarter, to our buy-equivalent 1 rating. 4. Starbucks is getting better at retaining customers. But the funnel for the occasional user is not good. China remains a disaster. Going to smaller cities where there remains plenty of white space. The stock gained 4.5% on a better-than-feared quarter, which was we were banking on when we added to our position Monday. Starbucks' turnaround took an encouraging step forward, but it's not out of the woods yet. 5. Advanced Micro Devices shows not that it is catching up to Nvidia but it is catching up to demand. Guides up by $500 million. Artificial intelligence demand is growing fast with so many customers wanting powerful chips. The nearly 7.5% jump in AMD shares on strong earnings validates our decision to reinvest in the stock. Despite the positive results, we lowered our price target by $10 to $200 per share to reflect the lower multiples the market is giving tech and semiconductor stocks. We reiterated our 1 rating. 6. As of Tuesday's close, Nvidia has now lost nearly $800 billion in market cap since its mid-June peak at $3.33 trillion. The Club stock was adding roughly 7% after losing the same Tuesday. Morgan Stanley analysts name Nvidia a top pick. Nvidia is set to report earnings Aug. 28. Elsewhere in tech, Club stocks Meta Platforms reports earnings Wednesday evening. Apple and Amazon are out after Thursday's close. 7. Club name DuPont issued a major guide higher; led by semiconductor materials. The stock rose more than 4.5%. The green shoots turned out to be real. Water orders from China were meaningful. Club name DuPont announced in May that it will break up into three companies over the next 18 to 24 months. Our last DuPont buys were in June. Club names Eaton and Linde report earnings before Thursday and Friday's opens, respectively. 8. Club name GE Healthcare can't get around China, still. Do these guys know what they are doing? It is why we sold a lot of it Tuesday. They may be the worst when it comes to hoping for China. Blamed delayed China stimulus. The stock lost more than 3%. Overall, GEHC beat on quarterly earnings and missed on revenue. 9. It's not clear how bad Pinterest really is. If you go over Google's number, people are wondering about advertising and whether it is weak or not. I think it isn't. Google does have subscriptions though, not just ads. Pinterest is just ad-supported and expectations got ahead of themselves. Pinterest shares fell 9.5%. 10. Boeing reported a wider-than-expected quarterly loss and weaker revenue. Despite the struggles, the stock rose 1%. The aircraft maker said it hired aerospace industry veteran Robert "Kelly" Ortberg to become its next CEO. Ortberg is coming out of retirement and will start Aug. 8.

5 Things To Know In Investing This Week: The Earnings And Inflation Issue - Chegg (NYSE:CHGG)

We hit earnings season and with the Magnificent 7 priced for perfection, it was going to take "perfect" earnings reports to keep the market from falling. $GOOG GOOG and $TSLA TSLA showed some weakness and for the second straight week, tech leads the stock market lower. Coursera COUR beats earnings and positions itself as an AI play causing the stock to rise almost 45% on Friday. Las Vegas Sands $LVS LVS slides on a temporary non-problem. We explain the situation. We get a strong GDP print and a higher-than-expected PCE. Many are saying the Fed will absolutely 100% cut rates in September. I think that's possible, but not nearly the certain outcome the market expects. Finally, Alex attends the Bitcoin BTC/USD conference and receives a warm welcome. This week, we'll address the following topics: Coursera $COUR earnings better than expected. Stock up huge. New AI play? Las Vegas Sands $LVS reports earnings and I disagree with the market reaction. The Magnificent Seven - not again! GDP comes in strong. Does that affect the probability of rate cuts? PCE comes in slightly high. Does that affect the probability of rate cuts? DKI Intern, Alex Petrou, attends the Bitcoin Conference and meets friendly and knowledgeable Bitcoin celebrities. Ready for another week of better earnings and higher inflation? Let's dive in: Coursera Enrolls 2MM in AI Courses - Market Thrilled: Coursera has been a frustrating stock at DKI. Initial skepticism centered around the expected loss of the Covid-lockdown business when many people took courses after they had watched everything available on Netflix NFLX. Instead, the company kept that huge new base and continued to grow rapidly. Later, a slowing growth rate and poor results from competitor 2U TWOU and non-competitor Chegg CHGG crushed the stock. Last week, Coursera announced revenue and earnings that beat expectations and enrolled 2MM new students into a variety of generative AI courses. 2U declared bankruptcy highlighting the difference between their poor business model and Coursera's more learner-friendly one. Many thought AI was a threat to Coursera's business. Teaching others how to use it is a source of growth. Slide from company presentation. DKI Takeaway: Last quarter, $COUR warned about weaker growth due to delays some tech companies had in completing new certificate courses. With new AI-related courses from the mega-cap tech firms, these late arrivals are now a source of new growth. Revenue of $170MM beat prior guidance of $164MM at the midpoint and beat analyst estimates of $164MM. EPS of $.09 was above analyst estimates of $.01. The company completed a $95MM stock buyback retiring almost 3MM shares in the quarter. In order to keep full-year guidance unchanged, 3Q revenue guidance was $6MM below expectations. Given that's the identical amount of the 2Q beat, I think it's likely management took advantage of the opportunity to issue conservative guidance. The market liked what it saw, and as I write this, the stock is up 45% from yesterday's close. More details on the company and industry for subscribers here and here. I Disagree with the Market on Las Vegas Sands Earnings: Las Vegas Sands $LVS has been trading down on concerns regarding the Chinese economy as well as expectations of lower property level EBITDA in Macau. While China is facing its share of economic difficulties, mass and premium mass visitation in Macau are at/above pre-Covid levels. Similar to when the US relaxed its stay-at-home regulations, the Chinese gambler has a lot of pent-up bankroll and a desire to travel and return to prior fun activities. Two Macau properties had sequential declines in revenue. Part of that is explained by normal seasonality. Most of it is explained by a large number of rooms temporarily out of service due to renovations. Gaming resorts take a lot of hard use and also need to appear luxurious. Regular renovations are a normal and important part of the business. The rooms currently out of service will come back in better shape and with higher-than-average room rates. Continued recovery in Macau. Record results in Singapore. Slide from Sands presentation. DKI Takeaway: I think actual results support my view on the company. Despite around 1,500 rooms out of service for renovations, Macau EBITDA was up from $541MM a year ago to $561MM this year. That's only going to improve when the newly renovated rooms are complete in the next six months. Singapore continues to post record results with $512MM in EBITDA. That's the best 2Q I've seen in my quarterly model going back to 2016. $LVS restarted the dividend a couple of quarters ago and has been buying back huge amounts of stock. Between dividends and stock buybacks, the company has returned almost $1.2B of capital to shareholders so far this year. With Macau recovering, Singapore at record highs, and the current disruption being both temporary and planned, I think the market is too pessimistic on Sands. The Magnificent Seven's Magnificent Tumble: Last week, the decline in the Magnificent 7's (Mag 7) mega-cap sector was primarily driven by macroeconomic conditions and political factors. This week, the Mag 7 experienced further declines following disappointing earnings reports. Alphabet $GOOG, Google's parent company, missed estimates for YouTube's advertising revenue, leading to a drop in its stock price. Tesla $TSLA reported lower-than-expected earnings and a 45% decline in profits. Verizon $VZ, not part of the Mag 7, reported earnings below estimates, with a significant loss of 624,000 pay-as-you-go plans. This decline is particularly notable as it coincides with the drying up of stimulus funds from the Affordable Connectivity Program (ACP), a stimulus initiative aimed at assisting low-income households, which ended in April. DKI has been writing consistently about government spending on consumption. $NVDA, $TSLA, and $META all down 15%+ in two weeks. DKI Takeaway: The Verizon earnings highlight how dependent our economy is on governmental stimulus spending. While artificial intelligence excitement has fueled a market boom, some of the high-performing mega cap tech companies were priced for perfection. $GOOG earnings weren't bad. It just doesn't take a lot of disappointment right now to cause stock price declines. On last week's 5 Things video version, I expressed concern about declining unit sales at Apple $APPL. Nvidia's $NVDA earnings report next week will provide the market a lot of direction about current AI expectations. This is also your regular reminder that massive numbers of Nvidia GPUs will require massive amounts of electricity. Do you own enough power generation and uranium in your portfolio? High GDP and Rate Cuts?: Second quarter GDP came in at 2.8%. That's both a healthy number and much higher than the 2.0% estimate. Does that mean we have a healthy economy? DKI has been emphasizing for a year and a half that we have a bifurcated economy. The private sector and many Americans are struggling. Private market job growth is nonexistent and people are having difficulty affording food, gas, and insurance. The government has been spraying trillions of dollars of inflation-causing consumption-focused stimulus into the economy which is the reason for this better-than-expected GDP print. Almost all job growth is coming in government positions or in industries funded by government. This spending is also causing inflation. It's a decent quarter, but so much of that is debt-funded govt. spending. DKI Takeaway: The market is still assuming a near-100% probability of a September rate cut. While I acknowledge the Fed may choose to cut rates then, I continue to believe the probability of a rate cut that soon remains well under 100%. Many smart people, including economist and DKI Board Member, Michael "Mish" Shedlock @MishGEA, correctly point out that the private sector of the economy indicates we're already in a recession. I agree with Mish. Most Americans aren't doing well financially. However, Congressional stimulus overspending is leading to high GDP growth and continued inflation. That could cause the Fed to move more slowly than the market hopes and expects. This potential action will cause many in Congress to complain, but they're not even considering cutting spending and have no one to blame but themselves. The PCE Comes in Slightly Higher than Expected: Friday's PCE report came in a little higher than expected. PCE stands for Personal Consumption Expenditures and it's the preferred inflation metric used by the Fed. The annual increase of 2.5% was down 0.1% from last month and was above expectations for 2.4%. The Core PCE, which excludes food and energy, was flat at 2.6%. That was also above expectations of 2.5%. the report shows a continuation of prior trends with income rising slightly slower than inflation. Again, goods pricing was down a bit while sticky services prices were up 3.9% vs last year. The report also says food prices are up 1.4% vs last year. Is your grocery bill up only 1% this year? Not a disaster, but also not declining as quickly as hoped. To the economists who think Americans should be more grateful for disinflation: This is why people are upset about price levels. DKI Takeaway: As of now, the market is still saying there's an almost 100% probability of a September rate cut. That could happen, but I think the probability of that is below 100% for four reasons; continued inflation above 2%, aggregate GDP numbers that are still strong due to massive government stimulus spending that's causing inflation, market participants have been predicting rate cuts for over two years and have been wrong (it's not a predictive metric), and when the market is assigning a 100% probability of something, it's easy to take the under. Higher for longer (probably!). Alex Goes to the Bitcoin Conference - Meets People: DKI Intern, Alex Petrou, made his first trip to the US this week, and due to a fire in the JFK (New York) airport, had an unexpected layover. Fortunately, I live nearby and had the opportunity to host Alex on Wednesday night. He was up at 4:30am on Thursday and made his flight to Nashville where he connected with @Peruvian_Bull (PB). I'm a fan of PB's work, and Alex interned for him last year. At the conference, Alex attended a panel including PB, Dylan LeClair, known for his role in MetaPlanets' Bitcoin strategy, and Allen Farrington, a writer from Scotland. One of these luminaries helped get Alex's conference pass upgraded, and he was able to check out everything from new cold storage solutions to Bitcoin hot sauce stands. I understand cold storage, but am mystified regarding the concept of Bitcoin hot sauce. Many of you may feel the opposite. At these exhibits, Alex met Davinci Jeremie who publicly suggested people put at least a very small amount of their assets in Bitcoin - 11 years ago! DKI Takeaway: I believe Alex is DKI's 9th Intern. In many ways, learning to invest is much easier now than it was when I was in college. There are videos, presentations, an active Fin-X community, and incredible access to the detailed thinking of top money managers and economists. Each one of these young people has spent hundreds of hours in their free time to educate themselves and learn about investing outside of their classrooms. They have drive and integrity. They expect to work for everything they receive. Every one of them has graduated with a real job in finance and I'm proud of each of them. Alex and Andrew Brown both have an advanced understanding of the problems inherent in fiat currency and understand how more government control of our money leads to inflation, lower living standards, and reduced freedom. I'm thrilled to see Alex at the Bitcoin conference connecting with and learning from other Bitcoiners. It wouldn't surprise me to see him become a speaker there one day. A note of appreciation from DKI to @Peruvian_Bull, Dylan LeClair, Allen Farrington, and Davinci Jeremie for warmly welcoming and educating those who came after them. I'm writing this on Saturday morning and many expect President Trump to announce a Bitcoin Strategic Reserve should he win the election in November. My home state of Michigan just announced it has $6.6MM of Bitcoin in its pension funds. I think we're going to see more of these announcements in the next few years. DKI's response: hodl. Information contained in this report, and in each of its reports, is believed by Deep Knowledge Investing ("DKI") to be accurate and/or derived from sources which it believes to be reliable; however, such information is presented without warranty of any kind, whether express or implied. DKI makes no representation as to the completeness, timeliness, accuracy or soundness of the information and opinions contained therein or regarding any results that may be obtained from their use. The information and opinions contained in this report and in each of our reports and all other DKI Services shall not obligate DKI to provide updated or similar information in the future, except to the extent it is required by law to do so. The information we provide in this and in each of our reports, is publicly available. This report and each of our reports are neither an offer nor a solicitation to buy or sell securities. All expressions of opinion in this and in each of our reports are precisely that. Our opinions are subject to change, which DKI may not convey. DKI, affiliates of DKI or its principal or others associated with DKI may have, taken or sold, or may in the future take or sell positions in securities of companies about which we write, without disclosing any such transactions. None of the information we provide or the opinions we express, including those in this report, or in any of our reports, are advice of any kind, including, without limitation, advice that investment in a company's securities is prudent or suitable for any investor. In making any investment decision, each investor should consult with and rely on his or its own investigation, due diligence and the recommendations of investment professionals whom the investor has engaged for that purpose. In no event shall DKI be liable, based on this or any of its reports, or on any information or opinions DKI expresses or provides for any losses or damages of any kind or nature including, without limitation, costs, liabilities, trading losses, expenses (including, without limitation, attorneys' fees), direct, indirect, punitive, incidental, special or consequential damages. Market News and Data brought to you by Benzinga APIs

Jim Cramer's top 10 things to watch in the stock market Tuesday

My top 10 things to watch on Tuesday, July 30 1. Wall Street was mixed Tuesday, heading into the continued onslaught of tech earnings. Microsoft and Advanced Micro Devices are out after the bell. Artificial intelligence spending will be in focus as investors debate whether it is all worth it. Two more portfolio names reported mixed earnings Tuesday morning: Procter & Gamble and Stanley Black & Decker. 2. P & G delivered a really weak forecast. It just figures as the stock was looking way too high. The stock lost 5%. That's the way P & G does it. Dividend increased by 7%. The consumer products giant beat on quarterly earnings but missed on revenue. Volume did increase for the first time in more than two years. 3. Stanley Black & Decker beat on quarterly earnings and matched on revenue. Big margin expansion. Raised full-year free cash flow and low-end earnings guidance range. The company said its Dewalt brand, outdoor, and aerospace fasteners offset "weak consumer backdrop." The stock soared more than 7%. We sold some last week into the rally but kept plenty on as Stanley Black & Decker executes a turnaround and stands to benefit from upcoming Fed interest rate cuts. The Fed's two-day July meeting begins Tuesday. No rate cut is expected this week. September is seen as the first of three possible cuts this year. 4. Diageo had really bad quarterly sales. Premium tequila down huge. Whisky terrible. Time to realize GLP-1 weight loss and diabetes drugs (made by Novo Nordisk and Club name Eli Lilly ) are hurting hard alcohol. First down number since Covid. But beer with Guinness up. Will investors differentiate Corona and Modelo maker Constellation Brands , which is killing it in beer? We bought some more Constellation Monday on a decline tied to Heineken's woes. 5. Barclays cut McDonald's price target to $300 per share from $320. It doesn't matter. The fast food giant is committed to value. Will portfolio name Starbucks , which reports earnings after Tuesday's close, be similarly inclined? 6. Merck beat on quarterly earnings and revenue on strength in blockbuster cancer drug Keytruda. However, Merck's outlook was regarded as weaker and the stock lost more than 3%. 7. Pfizer delivered beats on quarterly earnings and revenue. It's the first with topline growth since fourth quarter 2022. The drugmaker benefited Covid antiviral Paxlovid and strong non-Covid product sales. Hiked outlook. The stock was up more than 1%. 8. JetBlue delivered quarterly earnings of 8 cent per share. The Street was looking a 10-cent loss. Revenue also beat. The stock was up 3%. JetBlue bucked an industry trend of troubles as since in results from Delta, United, Southwest, and American Airlines. 9. Skyworks Solutions price target raised to $115 per share from $85 at Barclays. Skyworks, which provides wireless networking services, is out with earnings after Tuesday's close. It's a big supplier to Apple and viewed as a read through on iPhone demand. Apple reports earnings after Thursday's close. Apple has fared better in the recent rotation out of tech winners than fellow Club name Nvidia. 10. F5 , which provides a ramp to the internet, shows what can happen to non-large cap tech when it delivers a good quarter. The stock soared more than 13%. F5 helps companies secure and optimize their apps on-site and in the cloud. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. 1. Wall Street was mixed Tuesday, heading into the continued onslaught of tech earnings. Microsoft and Advanced Micro Devices are out after the bell. Artificial intelligence spending will be in focus as investors debate whether it is all worth it. Two more portfolio names reported mixed earnings Tuesday morning: Procter & Gamble and Stanley Black & Decker. 2. P&G delivered a really weak forecast. It just figures as the stock was looking way too high. The stock lost 5%. That's the way P&G does it. Dividend increased by 7%. The consumer products giant beat on quarterly earnings but missed on revenue. Volume did increase for the first time in more than two years. 3. Stanley Black & Decker beat on quarterly earnings and matched on revenue. Big margin expansion. Raised full-year free cash flow and low-end earnings guidance range. The company said its Dewalt brand, outdoor, and aerospace fasteners offset "weak consumer backdrop." The stock soared more than 7%. We sold some last week into the rally but kept plenty on as Stanley Black & Decker executes a turnaround and stands to benefit from upcoming Fed interest rate cuts. The Fed's two-day July meeting begins Tuesday. No rate cut is expected this week. September is seen as the first of three possible cuts this year. 4. Diageo had really bad quarterly sales. Premium tequila down huge. Whisky terrible. Time to realize GLP-1 weight loss and diabetes drugs (made by Novo Nordisk and Club name Eli Lilly) are hurting hard alcohol. First down number since Covid. But beer with Guinness up. Will investors differentiate Corona and Modelo maker Constellation Brands, which is killing it in beer? We bought some more Constellation Monday on a decline tied to Heineken's woes. 5. Barclays cut McDonald's price target to $300 per share from $320. It doesn't matter. The fast food giant is committed to value. Will portfolio name Starbucks, which reports earnings after Tuesday's close, be similarly inclined? 6. Merck beat on quarterly earnings and revenue on strength in blockbuster cancer drug Keytruda. However, Merck's outlook was regarded as weaker and the stock lost more than 3%. 7. Pfizer delivered beats on quarterly earnings and revenue. It's the first with topline growth since fourth quarter 2022. The drugmaker benefited Covid antiviral Paxlovid and strong non-Covid product sales. Hiked outlook. The stock was up more than 1%. 8. JetBlue delivered quarterly earnings of 8 cent per share. The Street was looking a 10-cent loss. Revenue also beat. The stock was up 3%. JetBlue bucked an industry trend of troubles as since in results from Delta, United, Southwest, and American Airlines. 9. Skyworks Solutions price target raised to $115 per share from $85 at Barclays. Skyworks, which provides wireless networking services, is out with earnings after Tuesday's close. It's a big supplier to Apple and viewed as a read through on iPhone demand. Apple reports earnings after Thursday's close. Apple has fared better in the recent rotation out of tech winners than fellow Club name Nvidia. 10. F5, which provides a ramp to the internet, shows what can happen to non-large cap tech when it delivers a good quarter. The stock soared more than 13%. F5 helps companies secure and optimize their apps on-site and in the cloud.

Stocks making the biggest moves premarket: Pinterest, Match Group, Advanced Micro Devices and more

Check out the companies making headlines before the bell. DuPont -- Shares popped 5% on the back of better-than-expected results in the second quarter. The chemical maker earned 97 cents per share, excluding certain items, on revenue of $3.17 billion. Analysts expected a profit of 85 cents per share on revenue of $3.05 billion, according to LSEG. DuPont also raised its full-year earnings and revenue guidance. Intel -- Shares rose more than 2% after a Bloomberg article reported that the semiconductor manufacturer is planning to announce thousands of job cuts as early as this week. Microsoft -- Microsoft slipped 3% after the Xbox maker reported disappointing cloud computing results . The company posted stronger-than-expected earnings and revenue, but revenue for Azure and other cloud services grew 29%, falling short of a 31% estimate. Advanced Micro Devices -- Shares popped nearly 9% after the chipmaker's earnings and revenue beat analyst estimates postmarket Tuesday. AMD reported adjusted earnings of 69 cents per share versus 68 cents expected from analysts polled by LSEG. Revenue was $5.84 billion, topping the $5.72 billion consensus estimate. Shares of Nvidia and ASML Holding also jumped about 7% each on the back of AMD's report. Arista Networks -- The computer networking company advanced 5% after beating Wall Street expectations on both its top and bottom lines. Arista reported second-quarter adjusted earnings of $2.10 per share on revenue of $1.69 billion, exceeding the $1.95 per share on $1.65 billion in revenue that analysts polled by LSEG were expecting. Pinterest -- The social media stock slumped 11% after forward guidance trailed estimates. The company provided third-quarter revenue guidance of between $885 million to $900 million, below the $908.6 million consensus estimate analysts polled by FactSet were expecting. Second-quarter earnings and revenue topped expectations, however, according to LSEG. Starbucks -- The coffee chain rose 4% after maintaining its full-year outlook. Net sales dropped in the fiscal third quarter, however, totaling $9.11 billion, below analysts' estimate of $9.24 billion, according those surveyed by LSEG. Starbucks reported adjusted earnings of 93 cents per share, matching the Street consensus. Skyworks Solutions -- The semiconductor stock dipped 1% after fiscal third-quarter adjusted earnings of $1.21 per share failed to top expectations. Revenue of $906 million, however, exceeded the FactSet consensus of $900.4 million. Upstart -- The lending platform advanced 6% following a double upgrade to outperform from underperform at Mizuho. Analyst Dan Dolev believes the stock could rally 19% from Tuesday's close, citing an improving risk profile among borrowers and lower interest rates as forthcoming catalysts. Boeing -- Shares rose 2% after the maker of the 737 MAX announced a new CEO . Boeing said that former Collins Aerospace CEO Kelly Ortberg will replace Dave Calhoun. In the second quarter, however, Boeing lost $2.90 per share , wider than the loss of $1.97 per share expected by the analyst consensus, according to LSEG. Live Nation Entertainment -- The entertainment stock was little changed after posting second-quarter revenue that matched expectations. Per-share earnings of $1.03 fell short of the $1.07 estimated by analysts polled by LSEG. AutoNation -- The car dealership was little changed after reporting second-quarter revenue of $6.48 billion, lower than the $6.72 billion that analysts polled by LSEG expected, while its earnings were likely not comparable due to a recent cyber incident in its dealer management system. Humana -- The health insurer dropped more than 7% as lackluster earnings guidance overshadowed better-than-expected second-quarter results. Humana reiterated its full-year bottom line forecast of about $16 per share. Analysts polled by StreetAccount, however, had penciled in $16.34 per share. Second-quarter earnings of $6.96 per share, excluding items, and revenue of $29.38 billion topped analyst expectations. Kraft Heinz -- Shares of the ketchup and mac and cheese maker gained less than 1% after reporting second-quarter earnings topped Street estimates. But revenue of $6.48 billion was below the $6.55 billion analysts had expected, according to FactSet. Marriott International -- The hotel chain slipped 4% after posting second-quarter revenue of $6.44 billion, below the $6.47 billion expected by analysts polled by FactSet. Marriott's adjusted earnings of $2.50 per share topped the $2.47 analysts had forecast. T-Mobile -- Shares advanced 3.2% before the opening bell after the mobile network operator surpassed estimates on the top and bottom line in the second quarter. T-Mobile notched earnings of $2.49 per share on revenue of $19.77 billion, while analysts polled by LSEG forecast $2.28 and $19.55 billion. The company also raised its full-year customer addition forecast. Match Group -- The owner of the Tinder dating app surged 9% after posting $864 million in second quarter revenue postmarket Tuesday, above analysts' estimate of $856.5 million, according to FactSet. Match said it plans to abandon live streaming services in its dating apps and sunset Hyperconnect's Hakuna app. Vistra -- Vistra shares popped 13% after the Texas-based power company received a 20-year license extension from the Nuclear Regulatory Commission to operate its Comanche Peak Nuclear Power Plant. The extension allows Vistra to operate the plant through 2053. Constellation Energy -- Shares rose nearly 12% after the mid-Atlantic grid operator PJM cleared 17.6 gigawatts of power capacity from Constellation in 2025 to 2026. Constellation operates the largest nuclear fleet in the U.S., and its stock is up 44% this year on rising power demand from artificial intelligence providers and data centers. Bunge -- Shares slipped 6.5% after the food company's net income plunged 88% to $70 million in the second quarter, compared to $622 million in the same period a year ago. CEO Greg Heckman said "current market conditions have improved in some regions, but we continue to have limited visibility into the latter part of the year." -- CNBC's Brian Evans, Michelle Fox, Fred Imbert, Spencer Kimball, Tanaya Macheel, Jesse Pound and Samantha Subin contributed reporting.

Here are Wednesday's biggest analyst calls: Nvidia, Microsoft, Starbucks, McDonald's, Pinterest & more

Here are Wednesday's biggest calls on Wall Street: Bank of America reiterates Pinterest as buy Bank of America said it's sticking with Pinterest following the company's earnings on Tuesday. "Solid quarter, but high expectations - We see steady progress and drivers intact; Buy" Morgan Stanley reiterates First Solar as overweight Morgan Stanley said investors should buy any weakness in First Solar shares following earnings on Tuesday. "We expect pricing upside to materialize in 2H24/early 2025 and see a strong buying opportunity following the recent sell-off." Morgan Stanley reiterates Microsoft as overweight The firm is sticking with the stock following earnings on Tuesday. "However, with our survey work suggesting big share gains ahead and MSFT trading at 29X GAAP P/E, it should be worth the wait." Barclays reiterates Advanced Micro Devices as overweight Barclays said it's standing by the stock following earnings on Tuesday. " AMD is strongly positioned for AI in CY25 and beyond with additional tailwinds across server and client CPUs and embedded programmable logic." Morgan Stanley upgrades Clearway Energy to overweight from equal weight Morgan Stanley said it sees upside for the clean energy developer. "We are raising our rating to Overweight (from Equal-weight); our new price target of $36 (up from $25) implies +43.4% one-year total return, including a 6.7% forward dividend yield." JPMorgan downgrades Mobileye to neutral from overweight JPMorgan said it sees too much uncertainty for shares of the autonomous systems driving company. "The uncertainty in the Autos market has only increased in recent months with a deteriorating volume outlook for Electric vehicles being compounded by the relatively lackluster sales trends for ICE and Hybrids as high vehicle prices and high interest rates start to show effects in relation to a worsening consumer demand backdrop." Mizuho upgrades Upstart to outperform from neutral Mizuho said it's getting bullish on shares of the consumer lending company. " Upstart ing a New Cycle; Upgrade to Outperform." Morgan Stanley names Nvidia a top pick Morgan Stanley said investors should buy the dip in shares of Nvidia. "No change to earnings or PT, but the selloff presents a good entry point as we continue to hear strong data points short term and long term, with overblown competitive concerns." Barclays upgrades Cemex to overweight from equal weight Barclays said the LatAm building materials company has upside. "Given better cost dynamics and attractive upside potential from current levels, we upgrade CX to OW while keeping our $9 PT unchanged." Berenberg downgrades Albemarle to hold from buy Berenberg downgraded the lithium company due to "deteriorating lithium prices." "Lower lithium prices have caught Albemarle on the wrong foot and fully committed to a large capex programme and may, we think, force the company to raise equity capital. We downgrade to Hold, with a new price target of USD83." Nomura upgrades Stellantis to buy from neutral Nomura said the stock's valuation is "attractive." " Stellantis' share price has declined 26% YTD (29 July close). During the same period, the share prices of the remaining Big6 OEMs were up 5% on average, while the S & P 500 rose 15%." Bernstein upgrades PayPal to outperform from market perform Bernstein said it sees new growth drivers for the stock. "We are tactically upgrading PayPa l to OP after almost 3 years. We are encouraged by improved transaction gross profit performance from positive branded growth, Braintree pricing initiatives, and Venmo monetization." Deutsche Bank upgrades Corning to buy from hold Deutsche said it sees "double-digit EPS growth over the next several years" for the glass company. "We upgrade Corning shares to Buy, with our $46 price target implying 18% total return." Citi initiates Navigator Holdings as buy Citi said it's bullish on shares of the liquified gas shipper. "We initiate coverage of NVGS with a Buy rating and $22 target price." Citi upgrades Ecolab to buy from neutral Citi upgraded Ecolab following earnings and said it sees more upside for the food safety company. "Share Gains & Continued Investments Support Robust Growth & Margin Expansion; Upgrade to Buy." TD Cowen downgrades McDonald's to hold from buy TD Cowen said it sees a more balanced risk/reward for McDonald's shares. "In our view, the positive stock reaction to 2Q's challenged results & soft 2H U.S. & Int'l outlook presents a balanced risk/reward over our 12-month investment horizon as we see shares as range bound." Raymond James upgrades Renasant to outperform from market perform Raymond James said it's bullish on shares of the bank holding company. "We are upgrading RNST shares from Market Perform to Outperform and establishing a $39 price target following its announced acquisition of The First Bancshares and capital raise." Bank of America upgrades Lockheed Martin to buy from neutral Bank of America said the defense company is a "beneficiary of global demand for fighters & missiles." "We are upgrading Lockheed Martin (LMT) to Buy (from Neutral), raising estimates and increasing our PO to $635 (from $465). Bank of America upgrades Gap to neutral from underperform Bank of America said it sees a better "margin opportunity" for Gap shares. "We think GPS will continue to beat on gross margin, leading to upside to F24 consensus EPS. The stock has reacted favorably to beats in recent quarters, and we view 2Q as the quarter with the most potential upside." Bank of America upgrades RTX to buy from neutral Bank of America said demand is rising for the aerospace and defense company. " RTX is in the process of a digital transformation - leveraging digital analytics across factories to improve yields, efficiency, and lower costs." Benchmark initiates Blink Charging as buy Benchmark said it's bullish on shares of the charging company network. "We are initiating coverage of Blink Charging Co . with a Buy Rating and a $5.00 Price Target." Jefferies upgrades Woodward to buy from hold Jefferies said in its upgrade of Woodward that it sees an attractive entry point for shares of the aerospace company. "Management has made significant progress towards stabilizing its factories from supply-chain delays through production rationalization, inventory management, and rapid response machining capabilities." Goldman Sachs reiterates Starbucks as buy Goldman said Starbucks has an "attractive" risk/reward following earnings on Tuesday. "We maintain our Buy rating with ~35% total return to our unchanged 12m price target of $100." Bank of America adds Marriott to the US1 list Bank of America added the stock to its top picks list. "We add Marriott International (MAR) to the US 1 List." Raymond James initiates On Holdings as outperform Raymond James said it's bullish on the shoe company. "We initiate coverage of On Holdings (ONON) with an Outperform rating and a $46 price target. ONON is a premium athletic brand founded in 2010 in Switzerland."

Nvidia stock's recent decline may present a buying opportunity for some investors

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Tuesday's key moments. The market is in a position where stocks rise with better-than-expected earnings but drop sharply on mediocre results. This can be seen with Stanley Black & Decker versus Procter & Gamble Tuesday morning. Shares of SWK rallied 7.3% higher, hitting a two-year high on an earnings beat even though there was just a slight sequential improvement in gross margins. PG shares, on the other hand, were trading 5.7% lower even as management said 85% of the business is performing in line with expectations. It's a company that tends to be consistent and deliver when it reports but "you don't buy consistency at this point of the cycle," Jim Cramer said Tuesday. "This is not a rational market when it comes to the valuation of individual stocks. It's a rational market when it comes to where we are in the cycle," Cramer added. Right now, the market wants companies that have underperformed, but are beating and raising guidance, while selling consistent performers. Investors are still favoring companies that do better in a lower interest rate environment as part of the market rotation, and selling those where rates don't really matter, like the mega-cap tech companies. Jim said big tech could be down enough to create buying opportunities. Shares of Nvidia , for example, were trading 4% lower Tuesday, continuing a downward trend that puts shares of the chipmaker down 13% over the past month. Still, the stock is up 116% year to date, making it the second-best performer in the S & P 500. Nvidia's earnings have soared due to high demand for its advanced chips from major tech firms like Meta , Alphabet , Amazon and Microsoft which are in the early phases of AI development and deployment. "What you're having here is a collapse of the multiple," Jim said of Nvidia stock. This is creating a favorable set up for investors who don't own Nvidia yet to start a position. Starbucks will report its third-quarter results after the closing bell Tuesday. We have low expectations, but will key in on CEO Laxman Narasimhan's comments about the quarter. Cramer said that "there's a path forward for the stock" if Narasimhan shows progress in resolving the company's boycott issues and finding a way to reduce ultra-high coffee prices. If he can do this "he's got a good stock," Cramer said. However, if there isn't progress on these pain points, it is possible Elliot Management, the activist firm which recently took a large stake in Starbucks, might push for Narasimhan's removal. (Jim Cramer's Charitable Trust is long SWK, PG, NVDA, META, GOOGL, AMZN, MSFT, SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.