On the morning of September 18, the S&P 500 appears set to open significantly higher, following a turbulent trading session in the previous day. This boost comes after the Federal Reserve’s decision to cut interest rates by a quarter point and a drop in initial jobless claims compared to the previous week. A discussion on market trends is scheduled at noon ET during the Investing Club’s Monthly Meeting for September, inviting new members to join.
In a significant industry development, Intel’s shares surged nearly 28% following an investment agreement with AI chip powerhouse Nvidia. Nvidia has committed $5 billion to purchase Intel’s common stock and will collaborate on the development of data center and personal computer chips, providing a necessary lifeline for Intel, traditionally known for its CPUs. Analysts view this as a better strategic move than Nvidia’s previous plan to acquire Arm.
On a less positive note, Cracker Barrel reported disappointing earnings, prompting a nearly 7% decline in its shares. The company has noted an 8% drop in restaurant traffic since it introduced a new logo on August 19, leading management to project a continued decline for the quarter.
Nucor also faced challenges, announcing a negative preannouncement about its expected earnings. The steel manufacturer anticipates earnings per share between $2.05 and $2.15 for the third quarter, significantly below the FactSet consensus of $2.57. This shortfall is attributed to reduced volume and rising costs, causing shares to drop approximately 4% in premarket trading.
In contrast, CrowdStrike’s shares jumped nearly 5% after the cybersecurity firm offered optimistic long-term financial forecasts during an analyst day. Following this announcement, multiple analysts adjusted their price targets upward, reflecting growing confidence in the company’s future.
Meta’s CEO Mark Zuckerberg has unveiled new Ray-Ban Display glasses, emphasizing a shift towards making smart glasses a central computing device for AI. Priced at $799, the glasses come with a wristband for display control, with the collaboration between Meta and Ray-Ban showing promising success thus far.
SoFi Technologies benefitted from an upgraded price target by Mizuho Securities, which increased its target from $26 to $31, attributing this to favorable conditions resulting from Federal rate cuts. The analysts maintained a buy rating, suggesting that short-selling pressures have kept the stock undervalued.
Reddit has seen two notable price target upgrades: Piper Sandler raised its target to $290 from $210, while Citizens JMP pushed its target to $300 from $225, both maintaining a buy rating. Analysts foresee multiple growth catalysts for the platform in the coming year.
AeroVironment, a low-cost drone manufacturer, received a buy rating from Bank of America, which cited promising growth opportunities. The firm set a price target of $300, reflecting a potential 10% upside.
Analysts from BTIG have initiated coverage of Abercrombie & Fitch with a buy rating and a target of $120, signaling about 40% potential upside for the brand, which has been working on growth strategies for its Hollister brand following previous highs.
Lastly, Chinese technology giant Huawei introduced an AI chip cluster it claims to be the “world’s most powerful,” positioning it as a competitor to Nvidia amidst a complex geopolitical backdrop.
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