My top 10 things to watch Thursday, Sept. 28
- Retest of Wednesday’s lows? Will they hold? No supply to meet the demand for oil at any price? 20-year Treasury yield about to de-invert when we thought the inversion was predicting a recession that never happened. Throw out the book of history on what is supposed to happen and when? That brings us to signals of another down day at the open for the Dow, the S&P 500 and the Nasdaq.
- The federal government budget fight is an embarrassment. House Speaker Kevin McCarthy criticizes Senate measure, telling CNBC the House will get a bill done to avoid a federal agency shutdown. Will the Washington drama and the ongoing strike change the Federal Reserve’s thinking? Perhaps, these headwinds make it so the Fed can rethink its path forward on interest rates. In the September meeting rate hike pause, central bankers indicated one more rate increase this year and rates higher for longer.
- Micron Technology (MU) was terrible and its negative free cash flow for quarters ahead is a nightmare. They called the bottom but SO WHAT. They will be losing money for three more quarters despite the bottom. Just not enough demand for some basic chips and a ton of demand for what they can’t make enough of plays out to be a deficit of humongous and continual disappointment. Micron had been expected to have a weak quarter and a good forecast. The opposite happened.
- Evercore ISI says Apple (AAPL) has pricing power when it comes to iPhones. That’s the conclusion of a survey of about 4,000 iPhone users conducted by the research firm. The data signals the iPhone 15 “off to a strong start.” Demand solid for higher-end Pro and Pro Max.
- Club name Meta Platforms (META) unveils Quest 3, the next iteration of its bestselling virtual reality headset. Allow augmented reality to interact with the outside world. AR is at the heart of Apple’s upcoming Vision Pro headset. Quest 3 starting at $499 aimed at video gamers. Vision Pro starting at $3,499 designed as a computing device.
- Ryan Cohen named CEO of GameStop (GME). The billionaire activist investor won’t “receive any compensation,” the video retailer said. Cohen took a stake in GameStop in 2020 and joined the board in 2021 at the height of the meme-stock maina.
- Lululemon (LULU) and Peloton (PTON) announce a 5-year partnership. Peloton branded merchandise to be made by Lulu. Peloton content on Lulu exercise app. Lulu to stop selling Mirror, whose future is uncertain after soft sales forced a $443 million impairment charge. PTON shares soar 15% on the news. It’s the first time Peloton has shared its content.
- Costco (COST) selling out of 1-ounce gold bars at roughly $2,000 at a less than 1% markup. Online item only. I asked CEO Craig Jelinek for “Mad Money” what he thinks that means. Jelinek said it comes down to people valuing gold in tough times, adding the demand also drives people to Costco’s website. After the closing bell Tuesday, Costco reported a solid quarter.
- Deutsche Bank Club names Emerson Electric (EMR) a “Catalyst Call: Buy Idea” on the thought that the industrial company might report a quarterly beat. Emerson is an energy transition play.
- Mizuho sees a big market for Alzheimer’s drugs in Japan. The analysts estimate 900,000 additional brain scans by 2026 for evaluation and monitoring of patients on the treatment. Mizuho reiterates buy rating and $94-per-share price target on GE Healthcare (GEHC), which makes the MRI, PET scan and CT scan machines.
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