As the new month begins, here are ten key items to watch in the stock market on Tuesday, October 1, CNBC reports:
- Market Outlook: Wall Street is set for a lower open today, following a strong September for the S&P 500, which marked its first positive month in five years. The index gained 5.5% in the third quarter and is entering a historically bullish period, nearly 21% higher in 2024.
- Fed Chair Comments: Federal Reserve Chairman Jerome Powell indicated on Monday that the central bank is not on a predetermined path for easing monetary policy. He hinted at smaller rate adjustments moving forward after September’s 50-basis-point cut. Attention will turn to the government’s September employment report, set to be released on Friday, which could impact Fed decisions and market trends.
- Stock Ratings: Pivotal Research has initiated coverage on Meta Platforms and Alphabet, giving both stocks buy ratings with price targets of $780 (a potential 35% upside) and $215 (a potential 28% upside), respectively, citing strong revenue growth prospects for Meta and Alphabet’s competitive advantages.
- Medtronic Target Increase: Citi has raised its price target for Medtronic from $85 to $92 per share, although analysts remain cautious. GE Healthcare, which recently received FDA approval for a new diagnostic agent, is seen as a strong alternative within the medtech sector.
- Danaher Rating: Stephens has initiated coverage of Danaher with an overweight rating and a price target of $315 per share, suggesting approximately 13% upside. Analysts anticipate a boost in biotech funding and Chinese economic stimulus benefiting the life sciences company.
- Apple Demand Concerns: Barclays has reported that demand for Apple’s new AI-ready iPhone 16 appears to be weak. Jim Cramer expressed skepticism over these channel checks, suggesting that the anticipated robust upgrades may not materialize immediately.
- Anheuser-Busch Upgrade: Citi upgraded Anheuser-Busch InBev from neutral to buy, leading to speculation about a potential large buyback. Meanwhile, Constellation Brands, which owns Modelo and Corona, is set to report earnings before the market opens on Thursday.
- Netflix Price Target Increase: KeyBanc has raised its price target for Netflix from $735 to $760 per share, indicating its strong performance among the “FANG” and “Magnificent Seven” stocks. Conversely, Raymond James downgraded Disney to a market perform rating, citing concerns about its parks business.
- Port Workers Strike: Union workers on the East and Gulf Coasts have initiated a strike, the first by the International Longshoremen’s Association since 1977, impacting trade across 14 major ports. This could have significant ramifications for companies like Costco and Home Depot, which are bracing for disruptions.
- Boeing Price Target Reduction: Wells Fargo has lowered its price target for Boeing from $119 to $110 and maintained a sell-equivalent rating amid ongoing strikes by Boeing factory workers. Reports indicate that the company may be considering a $10 billion equity raise.
As the market opens, attention will also be focused on Nike’s quarterly results, scheduled for release after the closing bell, following the recent announcement of a CEO transition amidst sales challenges. Additionally, Major League Soccer (MLS) is expanding its global reach through a partnership with OneFootball, aligning with its existing media rights deal with Apple to enhance its international presence, particularly following the arrival of superstar Lionel Messi in the league.
