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The top 10 things to watch in the stock market Wednesday

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The 10 things to watch Wednesday, Nov. 22

1. U.S. stocks rise in premarket trading Wednesday, with S&P 500 futures up 0.3%, after closing mostly lower the day prior. Equities are being bolstered by a slight pullback in bond yields, with that of the 10-year Treasury hovering just below 4.4%.  

2. Stocks are also being helped by retreating oil prices, with crude down on news that the Organization of the Petroleum Exporting Countries and its allies delayed a meeting that had been set for this weekend. The market had been expecting OPEC+ to announce fresh supply cuts. But even with a reduction in oil output, the International Energy Agency still sees a supply surplus in 2024 — welcome news for U.S. consumers. West Texas Intermediate crude is down more than 4%, at roughly $74 a barrel.

3. The number of Americans filing jobless claims for the week ended Nov. 18 fell by 24,000, to 209,000, according to the U.S. Labor Department. That’s less than economists were expecting, even if the labor market overall continues to cool.

4. Club holding Nvidia (NVDA) reports strong quarterly results. Though some investors may question the sustainability of the chipmaker’s data-center demand near term, it’s clear there will be a lot of upside over the long term as the adoption of artificial intelligence continues to go mainstream. Numerous banks raise their prices targets on Nvidia Thursday — with JPMorgan increasing it to $650 a share, up from $600, while maintaining an overweight rating.

5. Sam Altman is returning to the top job at OpenAI just five days after being ousted. The AI startup, in which Club name Microsoft (MSFT) holds a roughly 49% stake, is also shaking up the composition of its board. A new board is expected to include Bret Taylor, the former co-CEO of Salesforce (CRM), and former Treasury secretary Larry Summers.

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6. Software company Autodesk (ADSK) reports better-than-expected third-quarter results. But weak guidance for the fourth quarter is weighing on shares in early trading Wednesday, prompting numerous price-target reductions by Wall Street firms.

7. HP Inc. reports mixed quarterly results, but CEO Enrique Lores delivers encouraging commentary around PC demand. “The second half was stronger than the first half [of this year], and we expect the market to grow in 2024 compared to ’23,” he told Jim Cramer Tuesday.

8. Club holding Broadcom (AVGO) closes its acquisition of cloud software vendor VMWare. The $61 billion stock-and-cash deal was first announced in May 2022 and has faced heavy regulatory scrutiny. Shares of Broadcom are up 0.7% in premarket trading.

9. Mortgage demand hits a six-week high due to a decline in interest rates, according to the Mortgage Bankers Association’s seasonally adjusted index. “U.S. bond yields continued to move lower as incoming data signaled a softer economy and more signs of cooling inflation. Most mortgage rates in our survey decreased, with the 30-year fixed mortgage rate decreasing to the lowest rate in two months,” says Joel Kan, MBA’s deputy chief economist. 

10. Consumers may be increasingly budget-conscious, but spending continues to accelerate and looks set to do so through the holiday season, The Wall Street Journal reports. Conversely, a recent Morgan Stanley survey indicated consumers would not spend more this year. Either way, the Club sees upside for off-price retail holding TJX Companies (TJX), which offers the best bang for your buck.

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(See here for a full list of the stocks at Jim Cramer’s Charitable Trust.)

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Source: CNBC

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