On Friday, September 26, the S&P 500 opened with a positive shift, bouncing back after experiencing three consecutive days of losses. This upward movement coincided with reports indicating that core consumer inflation in August had risen 2.9% year-over-year, aligning with expectations. In response, bond yields decreased, suggesting a more favorable environment for mortgage rates.
Home Depot has caught the attention of analysts at JPMorgan, who have added the retail giant to their focus list, citing expectations of future growth in valuation. As one of the strongest long-term narratives within retail, Home Depot’s performance continues to be closely monitored. Meanwhile, there is still an opportunity for readers to register for a book signing event for “How to Make Money in Any Market” at Barnes & Noble in New York City, scheduled for the subsequent Tuesday.
In a notable move, President Donald Trump declared the implementation of 100% tariffs on patented drugs starting next week, contingent upon pharmaceutical companies establishing manufacturing plants domestically. Companies like Eli Lilly are already in the process of building such facilities in the U.S. In addition to this, the President unveiled new tariffs of 25% on imported heavy trucks, 50% on kitchen and bathroom cabinets and vanities, and 30% on upholstered furniture, all set to begin next week.
On the consumer technology front, thousands of enthusiastic fans queued up for the grand opening of a new Apple store in Tokyo’s Ginza district. An Evercore ISI survey indicated substantial ongoing demand for the newly launched iPhones, showcasing Apple’s strong market position.
In the automotive sector, Wedbush analyst Dan Ives adjusted Tesla’s price target upward from $500 to $600. Ives emphasized that Tesla’s true value lies beyond just its car production, highlighting the company’s advancements in robotics and autonomous technology.
Costco also made headlines by reporting a quarterly performance that surpassed expectations. However, despite the positive results, analysts noted a slight decrease in year-over-year membership signups, indicating that while Costco remains a powerful retail player, its stock may not see immediate catalysts for growth.
In the financial sector, Citigroup analysts increased their price target for Morgan Stanley to $155 from a previous $130. However, this figure still falls short of Morgan Stanley’s closing price of $158 from the previous day. Analysts showed a preference for Goldman Sachs within this segment. Concurrently, Morgan Stanley raised its price target on Microsoft to $625 from $582, attributing the increase to potential capacity constraints highlighted by recent deals in cloud and artificial intelligence technologies.
On a more positive note for the aviation industry, The Wall Street Journal reported that the FAA plans to ease certain restrictions on Boeing 737 MAX production. This news resulted in a significant stock surge of over 4% for Boeing, driven by growing international demand for their aircraft as countries look to address trade deficits with the United States.
In line with these developments, subscribers to the CNBC Investing Club with Jim Cramer are encouraged to stay informed through trade alerts prior to any transactions made in the club’s portfolio. The guidelines state that before executing any trades, a waiting period is imposed, depending on whether the stock has previously been discussed on CNBC.
As the market moves forward, analysts and investors alike are keeping a close eye on these unfolding events and their potential implications for various sectors.
