Shoppers stand in line to enter a Foot Locker Inc. store at the Queens Center shopping mall in the Queens borough of New York, U.S., on Wednesday, Sept. 9, 2020.
Peter Foley | Bloomberg | Getty Images
My top 10 things to watch Monday, Nov. 27
1. Stock futures were down slightly before the opening bell as the Street looks to extend its four-week winning streak for all three averages. We’re keeping our eyes on some key macroeconomic data: spending data, the latest estimate on GDP, new housing numbers and a couple of Club earnings reports.
2. The market is the most overbought in ages, with the S&P Short Range Oscillator above 7% as of Friday. Anything above a plus 4% indicates the market is overbought; anything below a minus 5% indicates the market is oversold. To help figure out the market’s pulse, we like to refer to the Oscillator as our guidepost for buying or selling stocks.
3. In my Sunday column, I wrote about how remarkable our soft landing is, given that China hasn’t helped one bit with commerce that at one point — when Trump was president — seemed most needed. We seem to ignore the fact that we have caught and passed the Chinese since the pandemic ended.
4. Industrial gas giant Linde (LIN) assumed with a buy at UBS, price target of $480, up from $445. Club name, great growth cyclical. Analyst cites a more balanced capital allocation approach and maintained growth of high-quality backlog compared to its peers.
5. Mondelez (MDLZ) upgraded at RBC to a buy from hold. End of GLP-1 hangover? Despite worries about the new weight-loss drugs, analyst says Mondelez has consistently delivered on earnings and is one of the few staples to deliver volume growth in 2023.
6. Another downgrade of Foot Locker (FL), as Citi goes to sell from hold. Endless. With 64% of sales coming from Nike (NKE) products, analyst says FL “is not completely in control of its own destiny.” Inglorious Club name reports earnings on Wednesday before the opening bell. We aren’t expecting a positive release, considering we’ve been trimming the position.
7. BP initiated with a buy at Morgan Stanley. Oils are awful here. I wouldn’t touch this one.
8. Synopsys (SNPS) price target raised to $600 from $540 at KeyBanc. Important analogue to Nvidia (NVDA), which has been faltering.
9. Textron (TXT) price target raised to $88 from $86 at TD Cowen. Potential M&A wild card. I wish Club holding Honeywell (HON) would buy it.
10. Bernstein reiterates Tesla (TSLA) as underperform. Analyst Toni Sacconaghi says EV maker is being valued as more than an auto company.
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