The Club’s 10 things to watch Thursday, Aug. 21 — Today’s newsletter was written by Zev Fima, the Investing Club’s portfolio analyst. 1. We’re headed for another lower open. Dow futures are notably down roughly on par with the tech-heavy Nasdaq , which has been hit harder in the recent market rotation, falling over 2% since Monday. The Dow has basically been flat the past two days. For its part, the S & P 500 is on a four-day losing skid. 2. Perhaps this is a reflection of yesterday’s Federal Reserve meeting minutes, which point to Fed Chair Jerome Powell striking a slightly more hawkish tone than many may have expected at his Jackson Hole speech tomorrow. Investors still expect to see a rate cut in September. However, the odds of three by year end are down slightly versus yesterday and a week ago, according to the CME FedWatch Tool . 3. More signs of tariff-induced inflation making its way to the consumer: Yesterday, we learned Pepsi would be raising prices on carbonated soft drinks, and that Sony is set to increase the cost of the PlayStation 5. Camera maker Nikon said earlier this week it’s raising U.S. prices. This raises the stakes for Powell’s speech tomorrow. The Fed is balancing inflation against labor-market health. Initial jobless claims topped expectations this morning. 4. The U.S. and EU shed new light this morning on their previously agreed-upon trade framework, including on pharmaceuticals and automobiles. According to the joint statement, the tariff rate on European automobiles will drop to 15% from 25% only after the EU formally introduces legislation that will cut duty rates on U.S. imports to the bloc. 5. Walmart shares dropped 3% this morning after the retail giant reported mixed results. Earnings came up short for the first time in over three years, but revenue beat expectations and same-store sales jumped 4.6%, a sign that its reputation for value is attracting inflation-wary shoppers. It raised its full-year outlook for sales growth and earnings. Its CFO told CNBC the company has eaten some tariff costs and pass others on. 6. Club name Meta has implemented a hiring freeze on AI talent as the company works to revamp its internal AI team structure, The Wall Street Journal reported. The increase in stock-based compensation costs is something analysts have begun to flag as a watch item as tech companies shell out to acquire top talent. No firm has been more aggressive there than Meta. 7. Morgan Stanley upgraded Hewlett Packard Enterprise to an overweight buy rating from equal weight. Analysts said the earnings uplift from its Juniper Networks acquisition, which closed last month, are not priced into the stock. Plus, they said shares are cheap and AI expectations are low. 8. A pair of price target bumps for Club name Nvidia ahead of earnings next week. UBS went to $205 a share from $175 and Wedbush went to $210 from $175 as well. Both firms are betting on strong results and believe guidance could be solidly above consensus depending on how quickly the China market comes back online, even though there’s some pushback in China on the use of Nvidia chips. 9. TJX Companies got a lot of price target hikes on the Street this morning, one day after the off-price retailer behind TJ Maxx, Marshalls, and HomeGoods reported a strong second quarter and raised full-year guidance. After yesterday’s earnings, we also raised our TJX price target to $150 from $145 and kept our buy-equivalent 1 rating. 10. ESPN’s flagship direct-to-consumer streaming app launched today — a one-stop shop for the content from Club name Disney’s sports network. Cable subscribers get the app for free. Evreryone else can get it through a variety of options including bundles with other Disney properties such as Disney+ and Hulu. There’s even a bundle coming in October with the new Fox One app, housing all Fox sports and news, which also launched today 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.
