My top 10 things to watch Thursday, May 16

  1. Wall Street is set for a low-key open Thursday after the S&P 500, Nasdaq and Dow all closed at record highs a day earlier following Wednesday’s cooler-than-expected consumer inflation report. The market moved further into overbought territory, according to my trusted momentum indicator, the S&P 500 Short Range Oscillator. An outrageously bullish combo of stocks is leading us higher.
  2. Dow stock Walmart rises 6% on Thursday following a blowout quarter from the nation’s largest retailer. Wins over higher-income customers. E-commerce sales pop. Other retailers, Under Armour and Canada Goose also deliver quarterly beats. But UAA sinks 11% on rough guidance. GOOS jumps 13.5%  as earnings crush estimates.
  3. Cisco Systems, also a Dow stock, is up more than 1.5% following quarterly earnings and revenue beats. Orders were up. Inventories were down even before the completion of Cisco’s acquisition of Splunk.
  4. Investors like Club name Palo Alto Networks‘ buy of IBM’s cybersecurity business. Palo Alto shares are up 1%. The stock has been up and down. Disappointing two straight quarters. But it has been rallying into next week’s earnings.
  5. Warren Buffett’s Berkshire Hathaway reveals insurer Chubb as the confidential stock the company has been buying. Chubb is up nearly 8%. Sorry this one should not be up this much. There could be antitrust repercussions due to Berkshire’s Geico ownership.
  6. Truist downgrades Occidental Petroleum, a Buffett favorite, to hold and cuts price target as the company uses free cash flow to pay down debt. The analysts, however, upgraded Club name Coterra Energy to a buy and raises PT on potential upside from any increases from oil and/or natural gas prices.
  7. Deere shares drop 5.5% after cutting its full-year outlook on pressure from declining crop prices. The company did beat on quarterly earnings per share and equipment revenue.
  8. Netflix says it has 40 million advertising-tier customers. Nearly double the company’s estimate back in January. Netflix no longer partnering with Club name Microsoft on ad tech. Using partners including Trade Desk, Google’s Display & Video 360, and Magnite.
  9. Wells Fargo starts Texas Instruments with a sell rating and bets the chipmaker can’t make targets. The stock is up year to date on a belief it will benefit from tariffs from the Biden administration.
  10. Bernstein increases Arm Holdings price target $92 per share from $72. Keeps a sell on it. The company didn’t get the big beat and raise.

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