My top 10 things to watch Monday, Dec. 4
1. U.S. stocks are lower in premarket trading, with S&P 500 futures down 0.54%. The move comes after five-straight weeks of gains for equities — and here’s how I make sense of the tremendous rally we’ve seen. Meanwhile, bond yields pull back, with that of the 10-year Treasury at around 4.2%. And oil prices edge down by 0.5%, with West Texas Intermediate crude trading at roughly $73.60 a barrel.
2. Alaska Air Group (ALK) agrees to buy Hawaiian Holdings (HA) in a transaction valued at $1.9 billion. But is it doomed from the start? We know that U.S. antitrust authorities just hate these deals.
3. Wells Fargo upgrades CyberArk (CYBR) to overweight from equal weight, while raising its price target to $250 a share, up from $166. The firm argues CyberArk stock is set to outperform the market going forward amid shifts in the cybersecurity competitive landscape.
4. Shares of Uber Technologies (UBER) are up about 4%, at $59.83 apiece, in early trading after S&P Global said the ride-sharing company would join the S&P 500 index on Dec. 18.
5. Mizuho upgrades General Motors (GM) to to buy from neutral, while raising its price target to $42 a share, up from $38. The firm says that investor sentiment on GM is “at a bottom,” while arguing the company should see “idiosyncratic catalysts” from cost reductions, a renewed focus on electric-vehicle profitability and share buybacks.
6. Barclays raises its price target on Adobe (ADBE) to $680 a share, up from $640, while reiterating an equal-rate rating on the stock. Adobe is set to report earnings on Dec. 14.
7. Piper Sandler makes Club holding Nvidia (NVDA) its “top large-cap pick,” pushing aside Advanced Micro Devices (AMD). The firm cites Nvidia’s “compelling” valuation, its “full stack of compute,” and software licenses as a contributor to overall revenue. Piper has a price target on Nvidia stock of $620 a share and an overweight rating.
8. Oppenheimer raises its price target on Club name Broadcom (AVGO) to $1,100 a share, up from $990, while maintaining an outperform rating on the stock ahead of its quarterly results on Thursday. The firm expects Broadcom’s acquisition of VMWare to add $15 billion a year to its top line.
9. UBS lowers it price target on Club holding Ford Motor (F) to $12 a share, down from $13, while maintaining a buy rating on the stock. The firm thinks a shift to more internal-combustion-engine vehicles could allow earnings to be more resilient. Elsewhere, HSBC initiates coverage of Ford with a hold rating and $11.30-per-share price target.
10. Wells Fargo downgrades Lululemon Athletica (LULU) to equal weight from overweight, citing valuation, with an unchanged price target of $445 a share. The firm recommends investors take “chips off the table” following the stock’s solid run year-to-date.
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