My top 10 things to watch Friday, Dec. 13 1. Insatiable demand for AI computing from all hyperscalers, including Apple . That’s the takeaway from Club holding Broadcom’s earnings report, which has shares soaring more than 17%. CEO Hock Tan estimated its “serviceable addressable market” for AI is $60 billion to $90 billion by 2027. I also would be careful betting against the sagging Nvidia after this, even as people dissemble about the fellow Club stock almost daily. 2. My trusted momentum indicator, the S & P Short Range Oscillator, is at minus 2.19 after Thursday’s down session. Looking for this to bottom soon. Anything below minus 4 signals the market is oversold, which is usually my cue to put some money to work. Wall Street is set to open higher Friday. 3. Quite a few catch-up price target bumps for Club name Costco after the retailer’s better-than-expected earnings report last night made clear that its model is working worldwide more than ever. We also lifted our PT on the stock despite already hovering near record highs. 4. The pattern of price target increases for travel stocks continues. Barclays took Royal Caribbean to $287 a share from $245 and kept its buy-equivalent rating, while it went to $286 from $249 for Marriott International and maintained its hold. Beware of calls based on stale information and “multiple expansion,” rather than better and better estimates. 5. Sempra’s big presence in California and Texas is working in its favor, and now Morgan Stanley upgraded the stock to a buy from hold. Missed a nearly 18% year-to-date move, but better late than never. Sempra CEO Jeffrey Martin told me this week that utilities are in a supercycle thanks to growing electricity demand. 6. KeyBanc with a big call: Analysts upgraded Club name Salesforce to a buy-equivalent rating and downgraded ServiceNow to a hold from overweight. Until today, ServiceNow has felt invincible with its ties to Nvidia and its big contract wins. Key suggests otherwise. Is Salesforce coming for ServiceNow? They came for Veeva and won business. 7. Wolfe Research upgraded PayPal to an outperform rating with a price target of $107, citing potential upside to the current Wall Street consensus. I like this call as the fintech pioneer is cleaning up its act under CEO Alex Chriss, who took over last year from the floundering Dan Schulman. With its upgrade, Wolfe is trying to get ahead of PayPal’s investor day set for February. 8. Reflections on President-elect Donald Trump after my interview with him : Could we see the end of regulation by enforcement for banks, and the beginning of a relationship based on discussion, including the consolidation of watchdogs? The Wall Street Journal reported Trump’s advisors are looking at ways to shrink the number of regulators in Washington. 9. Another Trump reflection: Is the new U.S. approach to China personal diplomacy with Chinese president Xi Jinping? Trump has reportedly invited Xi to his inauguration on Jan. 20. Trump talks tough on China, but there’s hopes of a better relationship between Washington and Beijing, or else things could get tricky. 10. RH , the luxury home furnishings maker, looks like it has won just by blocking and tackling, even as it is clear there has been no break in the housing turnover situation. Shares of RH are flying nearly 14% after raising guidance. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Pedestrians walk by a sign in front of a Broadcom office on December 12, 2024 in San Jose, California.
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My top 10 things to watch Friday, Dec. 13
1. Insatiable demand for AI computing from all hyperscalers, including Apple. That’s the takeaway from Club holding Broadcom’s earnings report, which has shares soaring more than 17%. CEO Hock Tan estimated its “serviceable addressable market” for AI is $60 billion to $90 billion by 2027. I also would be careful betting against the sagging Nvidia after this, even as people dissemble about the fellow Club stock almost daily.
2. My trusted momentum indicator, the S&P Short Range Oscillator, is at minus 2.19 after Thursday’s down session. Looking for this to bottom soon. Anything below minus 4 signals the market is oversold, which is usually my cue to put some money to work. Wall Street is set to open higher Friday.
3. Quite a few catch-up price target bumps for Club name Costco after the retailer’s better-than-expected earnings report last night made clear that its model is working worldwide more than ever. We also lifted our PT on the stock despite already hovering near record highs.
