The Nasdaq Composite experienced a downturn for the fourth consecutive session, reflecting a broader trend in the market. In the wake of this decline, traders are turning their attention to key stocks and sectors that have shown notable movements and potential for the upcoming trading day.
SpaceX made headlines as it completed two weeks since its highly anticipated IPO, which was initially priced at $135 per share. By the end of Thursday’s session, the stock had risen to $153, following a peak of $225.64 reached on June 16. The interest in SpaceX remains strong, with nine analysts currently covering the stock: five have assigned a buy rating, two recommend holding, and two others suggest an underweight or sell stance. Morningstar has set a price target of $62, while the consensus among analysts stands at $242.57. CNBC’s Seema Mody is expected to break down these metrics further, while Morgan Brennan will provide an in-depth look at SpaceX and the broader space sector on the network’s “Morning Call.”
In a more positive shift, CVS has garnered attention, particularly from CNBC contributor Josh Brown, who dubbed it “the best stock in the market” during Thursday’s “Halftime Report.” The stock has appreciated by 45% within three months, marking a new high as it closed at $104.66. Brown noted significant support for CVS among analysts, with 25 giving it an overweight or buy rating and five maintaining a hold position. The average target for CVS stock is projected at $104.25, reinforcing its favorable outlook.
Conversely, the so-called “Magnificent Seven”—a collection of heavyweight tech stocks—are facing significant declines from their previous highs. Tesla has plummeted 25% since its peak in December, with Nvidia down 17% from its May high, and Microsoft seeing a notable drop of 36% since July. Similarly, Meta Platforms has shed 32%, while Alphabet and Apple have also dipped significantly. Apple notably experienced a 6% drop on the announcement of price increases for its iPads and MacBooks.
Sector performance reflects this mixed atmosphere, with tech and communications services struggling near the bottom. In contrast, healthcare has gained 4.6% this week, utilities are up by 3%, and real estate has climbed 2.5% so far.
Looking ahead, the economic data releases on Friday include the University of Michigan’s consumer sentiment index for June. Economists surveyed by Dow Jones are predicting stability, with the expected reading set at 49.0, only marginally higher than the previous month’s 48.9. Notably, the State Street SPDR S&P Retail ETF (XRT) has shown positive momentum, rising 4.3% in June and 9.4% over the last three months.
As traders prepare for the next session, the focus remains on both the emerging trends in IPO stocks like SpaceX and solid performances from companies like CVS, alongside the struggles of major tech firms.
