My top 10 things to watch Friday, March 22

  1. Wall Street is looking weaker Friday after four straight days of gains. As of Thursday’s record-high closes, the strong week pushed the Dow up nearly 2.8%, S&P 500 up 2.4% and Nasdaq up almost 2.7%. Market optimism was kicked into high-gear Wednesday after the Fed signals it still sees three interest rate cuts this year despite a couple of hotter inflation reports.
  2. Holding back the Dow on Friday is Nike‘s more-than-6% decline on sluggish outlook and slowing China sales. The company is working on a broad restructuring to cut costs by about $2 billion over the next three years. The reported quarter did beat on earnings per share and revenue.
  3. Citi upgrades Foot Locker to neutral from sell. The analysts say a new Nike distribution strategy should benefit Club name Foot Locker. Citi raises its price target on Foot Locker to $24 per share from $19.
  4. Shares of Lululemon are down 13%, the morning after Thursday’s weak guidance and slowing North American growth. The reported quarter did beat on EPS and revenue.
  5. FedEx delivers remarkable quarter with no revenue growth. The leverage here is going to be amazing. Reorganization with DRIVE continues to win. Could EPS double? Shares jump 11% on the release.
  6. Nvidia had a big week with all the announcements from its GTC developers conference. The Club stock jumped 4% as of Thursday’s close of just over $914 per share. UBS raises its price target on the AI chip powerhouse to $1,000 from $800 and keeps its buy rating. Citing the Blackwell launch, the analysts see Nvidia on the “cusp of an entirely new wave of demand from global enterprises and sovereigns.”
  7. Fallout from Justice Department lawsuit against Club name Apple. A failed case? Shares are steady early Friday after sinking 4%. An overlooked longer-term catalyst for Apple came during the Nvidia event. The Vision Pro finally gets its “killer app,” Nvidia’s Omniverse.
  8. Starbucks stock is cheap as the company faces headwinds in key markets across the globe. We remain tentative on the next steps on the Club stock until these challenges roll over and the company shows proof of improving financials.
  9. Wedbush adds Google parent Alphabet to its Best Ideas list. The analysts say Google looks to be well positioned in artificial intelligence.
  10. Piper Sandler analyst Michael Lavery starts coverage of Club name Constellation Brands with an overweight buy-equivalent rating and a $300 price target. Lavery things Corona and Modelo can keep growing.

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