Top 10 things to watch Thursday, May 8
— Jeff Marks wrote today’s Top 10.
1. The stock market is headed for a strong open today after President Donald Trump said the U.S. has made a “comprehensive” trade deal with the United Kingdom. The president will hold a press conference at 10 a.m. ET to announce the agreement. The Fed held rates steady yesterday and Chair Jerome Powell expressed content to wait and see how tariffs impact the economy.
2. Club name Nvidia and other chip stocks continued to rally this morning after Bloomberg reported that Trump won’t go through with the Biden administration’s AI diffusion rules. They were supposed to take effect on May 15. Bernstein said it removes a near term overhang but questions what comes next. The analysts argue that a government-to-government agreement could potentially be worse.
3. Arm shares fell 8.5%. The chip designer reported a slightly better than expected fiscal 2025 fourth quarter but first quarter guidance missed on adjusted earnings per share (EPS). The midpoint of its revenue outlook was below consensus.
4. Several analysts came to the defense of Alphabet after yesterday’s more than 7% selloff. The stock recovered about a third of those losses this morning. The company said in a statement last night that it continues to see overall query growth in search, including those coming from Club name Apple‘s devices and platforms.
5. Club name Costco reported strong April sales. Same-store sales, also referred to as comps in retail rose 6.7% companywide, excluding foreign exchange fluctuations and gas sales. Core comps increased 7.1% in the United States despite a headwind from one less shopping day due to the calendar shift of Easter. Online sales were also strong.
6. Tapestry shares jumped 9%. The luxury owner of the Coach and Kate Spade brands delivered a better-than-expected quarter, with revenue up 8% in constant currency. Tapestry also raised its full-year revenue, earnings, and cash flow outlook despite concerns about tariffs and the macro environment.
7. Pharma stocks continued their bad week as a report from Politico indicates the Trump administration plans to target Medicare drug pricing next week. Club name Eli Lilly and Bristol Myers Squibb were modestly lower this morning.
8. Kenvue shares rose 5% this morning after the J&J consumer brands spinoff reported slightly better than expected first quarter results and announced a new CFO. Tariffs are expected to impact operating margins. The company behind the Tylenol and Benadryl brands expects sales growth to accelerate in the second half of the year
9. Shopify reversed modestly higher this morning after reporting quarterly revenue slightly better than expected. Operating income and gross merchandise volume missed.
10. Dutch Bros saw modest gains this morning after a better than expected first quarter. Comps were up 4.7% versus rough 4.59% expected. Adjusted EPS of 14 cents beat the 11 cents expected. Barclays raised its price target to $82 per share from $76.
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.
