My top 10 things to watch Thursday, Sept. 5 1. Wall Street was on track for a lower open as investors juggled a pair of somewhat conflicting labor market reports. Tech stocks faced the brunt of the selling. In a new Club commentary, we looked at potential buy levels for four of our megacap tech stocks, including Meta Platforms . 2. The negative jobs report: ADP said private payrolls grew by just 99,000 in August, the smallest monthly gain since January 2021 and far below estimates. The not-so-bad one: Initial jobless claims for last week totaled 227,000, a pinch below expectations. Friday is the big jobs day when the government releases its monthly employment report. 3 . Verizon has agreed to buy Frontier Communications in an all-cash deal worth $20 billion . Verizon’s $38.50-per-share offer to expand its fiber network was a 37% premium to Frontier’s close Tuesday, the day before reports about the potential transaction surfaced. Frontier jumped 38% on Wednesday, though the stock was dropping more than 9% on Thursday. 4. Another tranche of downgrades and price target cuts for Dollar Tree after the stock dropped more than 20% as investors focused on the cut guidance instead of the quarterly beat. Dollar Tree, which also owns Family Dollar, is not alone in forecasting a softer outlook. Last week, Dollar General slashed its outlook and saw its shares tumble. The likes of Walmart is hurting the dollar stores. 5. Barclays raised its Dick’s Sporting Goods price target to $254 per share from $247 and kept its buy-equivalent rating. The analysts cited a solid quarter. Citi cut its price target to $230 from $243 and kept its neutral rating. The analysts acknowledged the good quarter but pointed out that guidance was lower than the high end of expectations. 6. C3.ai shares sank more than 20% as the enterprise AI software company saw subscription revenue decline quarter over quarter. Is this an example of a meme stock that failed to deliver? There are multiple price target cuts among Wall Street analysts. 7. Semiconductor equipment maker ASML was booted as a top pick at Morgan Stanley, which also cut its price target on the stock. The analysts said ASML is “vulnerable to the unwind of inflated expectations.” Is this also due to the beginning of Intel reverberations? ASML technology allows Intel and other semiconductor manufacturers to make chips for some of the biggest companies, including Club name Apple . 8. An article in the publication Nature explores concrete signs that AI chips can help conquer cancer of all kinds. The research, which came out Wednesday, was praised by Dr. Eric Topol, the foremost medical expert on the topic of how artificial intelligence can be used to improve health outcomes. 9. Tesla will be offering advanced driver assistance in Europe and China next year. The introduction of the technology marketed by Elon Musk’s Tesla as “Full Self Driving” would be contingent on regulatory approvals. FSD is an upgrade to Tesla’s Autopilot driver assistant, which is already available in Europe and China. 10. Kamala Harris softens President Joe Biden’s capital gains rate proposal. The Democratic presidential nominee put forth a plan for 28% tax on long-term capital gains for households with annual incomes of $1 million or more. Biden had pitched 40% as part of his 2025 fiscal year budget. 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.
My top 10 things to watch Thursday, Sept. 5
1. Wall Street was on track for a lower open as investors juggled a pair of somewhat conflicting labor market reports. Tech stocks faced the brunt of the selling. In a new Club commentary, we looked at potential buy levels for four of our megacap tech stocks, including Meta Platforms.
2. The negative jobs report: ADP said private payrolls grew by just 99,000 in August, the smallest monthly gain since January 2021 and far below estimates. The not-so-bad one: Initial jobless claims for last week totaled 227,000, a pinch below expectations. Friday is the big jobs day when the government releases its monthly employment report.
3. Verizon has agreed to buy Frontier Communications in an all-cash deal worth $20 billion. Verizon’s $38.50-per-share offer to expand its fiber network was a 37% premium to Frontier’s close Tuesday, the day before reports about the potential transaction surfaced. Frontier jumped 38% on Wednesday, though the stock was dropping more than 9% on Thursday.
