My top 10 things to watch Friday, May 10

  1. Wall Street is poised for another higher open Friday. If premarket moves were to hold throughout the session, the Dow would notch its eighth consecutive winning day. All three major indexes are up more than 1% in this relatively quiet week of economic data, led by the Dow’s 1.8% gain. As of Thursday’s close, the S&P 500 was less than 1% below its March 28 all-time high.
  2. Utilities strong recently. Power generation needs due to AI data center builds and EVs ignite this long-time sleepy sector. Case in point, Constellation Energy shares add Thursday’s nearly 4% gain. Solid quarter. Mizuho raises to $217 per share from $132. Catch-up call for sure: $217 is right around current levels. Keeps neutral rating.
  3. Novavax signs deal with French drugmaker Sanofi to co-commercialize the company’s Covid vaccine starting next year. Shares of troubled Novavax more than double. The licensing agreement allows Novavax to lift its “going concern” warning.
  4. Chinese EV maker Zeekr Intelligent Technology prices 21 million shares at $21 each, the top of expected range. Zeekr is set to begin trading Friday on the New York Stock Exchange. Hong Kong-based Geely Automotive owns 50%. Zeekr is the latest Chinese EV maker to tap the U.S. public markets.
  5. Shares of Sweetgreen soar more than 20% after first-quarter earnings, which featured better-than-expected same-store sales and restaurant margins. The stock received multiple price-target boosts from analysts, including at Piper Sandler. An overall amazing quarter from the salad chain.
  6. KeyBanc upgrades Warner Bros Discovery to buy from hold. It’s an outlier call for certain after the company missed the quarter but saw streaming growth. Announced a streaming bundle to come with Club name Disney. WBD stock builds on Thursday’s 3% gain.
  7. Akamai blows up. Weak quarter and weak guidance. It’s the third content delivery network to do so. The stock drops 9%. There is a lot of rationalizing among customers. But the cybersecurity part is excellent and growing fast.
  8. Multiple Wall Street analysts, including those at BTIG and JPMorgan, reduce their price targets on Roblox after the video-game platform cut its full-year bookings outlook, which surprised me and sent shares tumbling 22% Thursday. With the sell-off in the rearview, analysts at MoffettNathanson upgraded the stock to hold from sell.
  9. Tapestry‘s fiscal third-quarter earnings top Wall Street expectations. But the company lowers full-year revenue outlook. The owner of the Coach and Kate Spade brands cites “more moderate trends” in North America and China.
  10. Stifel downgrades to hold from buy the once-loved, now-hated Planet Fitness. The analysts question the company’s earnings volatility.

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