My top 10 things to watch Friday, Dec. 6 1. The November jobs report came in strong, with 227,000 jobs added versus the Dow Jones consensus estimate for 214,000. The unemployment rate ticked up to 4.2%, as expected. Stock futures were little changed ahead of the report and moved up slightly after it hit. The market is now pricing in roughly 90% odds of a quarter-point cut at the Federal Reserve’s policy meeting Dec. 18, up from about 70% before the report this morning. 2. The enterprise software stocks are now very much in favor, so get used to seemingly endless price target increases. Barclays boosted its PT to $1,200 a share from $1,000 for ServiceNow , an AI-focused business software company that is universally loved no matter the price. For the Club, we own Salesforce as our enterprise AI play. 3. Hewlett Packard Enterprise reported an overall decent quarter, but the server maker showed exceptional orders when it comes to Nvidia ‘s AI products. Citigroup upgraded the stock to buy from hold with a $26 price target. Barclays, which kept its buy-equivalent overweight rating, went to $27 a share from $24. 4. Lululemon beat on the top and bottom lines, sending the stock up 9%. People were looking for reasons to criticize Lulu’s Americas business after its sales grew just 2%, but the fact is that this is a non-promotional company. They have good inventory control, and it’s regarded as premium with value. Multiple price target bumps, including BTIG, which went to $430 a share from $360. 5. Shares of Club holdings Best Buy and Stanley Black & Decker can’t catch a break because President-elect Donald Trump looks like a man of his word when it comes to higher tariffs on Chinese imports. On the other hand, Needham says it’s time to buy another stock with major tariff risk: Modelo maker Constellation Brands . The firm upgraded Constellation to a buy rating with a PT of $280 a share. 6. U.S. equity funds saw $140 billion in net inflows during November in the wake of Trump’s election victory, the Financial Times reported . So clear that some investors had reservations about stocks under President Joe Biden, and so did companies that would have come public. 7. Smart call: BMO Capital upgraded timber giant Weyerhaeuser on the prospect of higher tariffs on lumber coming into the U.S. from Canada. Analysts believe the steeper levies would push up prices and benefit companies like Seattle-based Weyerhaeuser that produce more in the U.S. 8. Ulta Beauty shares are jumping 10% after earnings were not as bad as expected. Beauty has been a real tough category of late. I like the way CEO Dave Kimbell is blocking and tackling here. Perhaps competition is lessening. JPMorgan upped its price target to $480 a share from $472. Barclays went to $410 from $335, but stayed at a hold rating. 9. Needham started coverage of Celsius Holdings with a buy rating and included the stock on its conviction list. Big call. The energy drink maker has been a big disappointment after a huge run that propelled the stock to almost $100 a share in March. It closed Thursday under $28. 10. Bank of America double upgraded Dollar General to a buy from underperform, saying the retailer’s “back to basics” strategy is taking shape. I’ve been worried about Walmart’s market share gains hurting dollar stores. 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.
An employment sign is seen on the window of a T-Mobile store on August 02, 2024 in New York City.
Michael M. Santiago | Getty Images
My top 10 things to watch Friday, Dec. 6
1. The November jobs report came in strong, with 227,000 jobs added versus the Dow Jones consensus estimate for 214,000. The unemployment rate ticked up to 4.2%, as expected. Stock futures were little changed ahead of the report and moved up slightly after it hit. The market is now pricing in roughly 90% odds of a quarter-point cut at the Federal Reserve’s policy meeting Dec. 18, up from about 70% before the report this morning.
2. The enterprise software stocks are now very much in favor, so get used to seemingly endless price target increases. Barclays boosted its PT to $1,200 a share from $1,000 for ServiceNow, an AI-focused business software company that is universally loved no matter the price. For the Club, we own Salesforce as our enterprise AI play.
3. Hewlett Packard Enterprise reported an overall decent quarter, but the server maker showed exceptional orders when it comes to Nvidia‘s AI products. Citigroup upgraded the stock to buy from hold with a $26 price target. Barclays, which kept its buy-equivalent overweight rating, went to $27 a share from $24.
