Stocks are expected to open slightly lower as Wall Street reacted minimally to a report showing better-than-anticipated job growth in November. The economy added 64,000 jobs in the nonfarm payrolls category, but the unemployment rate unexpectedly rose to 4.6%. These figures were released after a delay caused by the recent government shutdown. If the S&P 500 closes lower today, it would mark three consecutive down sessions, driven largely by losses in artificial intelligence (AI) stocks.
In corporate news, Morgan Stanley has raised its price target for GE Vernova from $710 to $822. The firm maintained its buy rating on the energy equipment company, noting its role in supporting the expansion of AI data centers. Meanwhile, Wells Fargo also increased its price target for GE Vernova, shifting it from $717 to $831.
On the cybersecurity front, Jefferies has expressed concerns that this sector may struggle in 2026 despite strong fundamentals, cutting its price target for Cloudflare from $250 to $225. However, price targets for Club holdings Palo Alto Networks and CrowdStrike remain unchanged.
In leadership changes, Kraft Heinz announced that Steve Cahillane, the former CEO of Kellanova, will take the reins of the company ahead of its planned split in 2026. Cahillane, known for successfully managing Kellogg’s breakup in 2023, will begin his new role on January 1, prompting nearly a 2% increase in Kraft’s stock.
Analyst activity continued as JPMorgan raised its price target for First Horizon from $23 to $27, citing strong potential in regional banks driven by anticipated interest rate cuts and loan growth. Conversely, Wells Fargo upgraded Gap from hold to buy, increasing its price target for the retailer to $30 from $24 due to expected improvements in holiday shopping.
In the beauty sector, Bank of America raised Estee Lauder’s price target from $120 to $130, highlighting its turnaround as the top beauty stock for 2026. The firm maintained its buy rating after increasing earnings estimates for the company.
In a significant move for its business operations, PayPal has applied to establish a bank that can offer small business loans and savings accounts, following the government’s preliminary approvals for crypto firms to form national trust banks.
Meanwhile, Barclays upgraded Southwest Airlines from hold to buy, boosting its price target significantly from $34 to $56. The firm indicated a preference for the airline’s new strategic direction, though some analysts suggest this upgrade may be overdue given the stock’s recent closing price near $42.
Finally, Mizuho raised Tesla’s price target from $475 to $530, implying an upside of 11.5% based on recent performance. Analysts retained their buy rating, citing optimism regarding advancements in robotaxi operations.
Investors are advised to keep an eye on these developments, which closely follow changes and trends in the market landscape. Subscribers to the CNBC Investing Club will receive alerts from Jim Cramer prior to any trades, ensuring timely information as market conditions evolve.
