Jim Cramer's top 10 things to watch in the stock market Thursday

Published Thu, Jul 11 20249:03 AM EDTUpdated Thu, Jul 11 20249:13 AM EDT

My top 10 things to watch Thursday, July 11 The S & P 500 and Nasdaq , both on seven-session winning streaks, looked to open lower after record closes on Wednesday. The June consumer price index came in around its lowest inflation level in more than three years. Stock futures were initially higher on the CPI numbers but later fell on some worries about deflation. Fed whisperer Nick Timiraos from The Wall Street Journal makes it clear that central bank chief Jerome Powell is pivoting and coming around to the idea that it's time to start cutting rates. Lower inflation without a significant slowdown is job one. Powell is getting close to mission accomplished. Are shareholders of Costco getting a goodbye present from Rich Galanti, who stepped down as CFO but is still helping with the transition? The Club name decided to increase membership fees for the first time since 2017. It's a second catalyst for the stock that we've been waiting for since the special dividend was announced in late 2023. Yes, I will renew my membership for one of the greatest bargains on Earth. It's a good sign on inflation: Costco waited until it thought it was not an issue. As for June sales, Costco reported a 7.4% increase to $24.48 billion. E-commerce sales soared more than 18%. Lots of price target increases pointing to strong core comps and the membership fee hike. PepsiCo reported mixed quarterly numbers on softer demand in North America for its drinks and snacks. The company also cut its outlook. Quaker recall was drag. Numbers led by Pepsi, not Frito Lay. This could be a frugal consumer or GLP-1 weight-loss drugs from Novo Nordisk and Club name Eli Lilly, or it could be both factors. Chill's and Maggiano's company Brinker is still crushing it. That's because the other guys raised prices too much. CEO Kevin Hochman told me on "Mad Money" the brands are delivering value every day. Morgan Stanley lowered its price target on McDonald's to $300 per share from $312, citing near-term soft trends. The analysts said a possible miss is "well understood." Delta matched quarterly expectations on earnings per share but missed on revenue. The airline maintained its full-year guidance. Big hit on Olympics from travelers avoiding Paris this summer? However, people do want to go to Europe see Taylor Swift in concert. Wells Fargo raised its Advanced Micro Devices price target to $205 per share from $190 and kept its overweight buy rating. People like AMD's deepening internal open-source software. For the Club, we own Nvidia and Broadcom , which got a price target boost to $2,400 per share from $1,650 at Rosenblatt. The analysts maintained their buy rating on Broadcom. Rosenblatt sees upside to Broadcom's fiscal 2024 recently increased sales target. Nvidia and five other Club tech stocks dominate the market, and we think they should . Despite setbacks, Pfizer is pushing ahead with its experimental once-per-day weight loss pill. The drugmaker plans additional early-stage trials in the second half of the year. Pfizer is trying to break into the GLP-1 market dominated by Novo Nordisk 's Ozempic and Wegovy and Eli Lilly 's Mounjaro and Zepbound. Piper Sandler raises its Hims & Hers price target to $18 per share from $16. TD Cowen goes to $25 from $15. I really like this one on GLP-1s. Compounded formulations are temporarily allowed because of the shortages of the branded drugs. Hims & Hers said it will eventually offer the brands when the shortage is over. Piper Sandler cut its Estee Lauder price target to $108 per share from $141 but kept its neutral rating. The analysts said the biggest risk is whether a wary consumer is willing to pay for luxury. The Club stock has been just awful as it struggles in China. 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.

A trader works as a screen displays a news conference by Federal Reserve Board Chair Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange on Dec. 13, 2023.

Brendan Mcdermid | Reuters

My top 10 things to watch Thursday, July 11

The S&P 500 and Nasdaq, both on seven-session winning streaks, looked to open lower after record closes on Wednesday. The June consumer price index came in around its lowest inflation level in more than three years. Stock futures were initially higher on the CPI numbers but later fell on some worries about deflation.
Fed whisperer Nick Timiraos from The Wall Street Journal makes it clear that central bank chief Jerome Powell is pivoting and coming around to the idea that it's time to start cutting rates. Lower inflation without a significant slowdown is job one. Powell is getting close to mission accomplished.
Are shareholders of Costco getting a goodbye present from Rich Galanti, who stepped down as CFO but is still helping with the transition? The Club name decided to increase membership fees for the first time since 2017. It's a second catalyst for the stock that we've been waiting for since the special dividend was announced in late 2023. Yes, I will renew my membership for one of the greatest bargains on Earth. It's a good sign on inflation: Costco waited until it thought it was not an issue. As for June sales, Costco reported a 7.4% increase to $24.48 billion. E-commerce sales soared more than 18%. Lots of price target increases pointing to strong core comps and the membership fee hike.
PepsiCo reported mixed quarterly numbers on softer demand in North America for its drinks and snacks. The company also cut its outlook. Quaker recall was drag. Numbers led by Pepsi, not Frito Lay. This could be a frugal consumer or GLP-1 weight-loss drugs from Novo Nordisk and Club name Eli Lilly, or it could be both factors.
Chill's and Maggiano's company Brinker is still crushing it. That's because the other guys raised prices too much. CEO Kevin Hochman told me on "Mad Money" the brands are delivering value every day. Morgan Stanley lowered its price target on McDonald's to $300 per share from $312, citing near-term soft trends. The analysts said a possible miss is "well understood."
Delta matched quarterly expectations on earnings per share but missed on revenue. The airline maintained its full-year guidance. Big hit on Olympics from travelers avoiding Paris this summer? However, people do want to go to Europe see Taylor Swift in concert.
Wells Fargo raised its Advanced Micro Devices price target to $205 per share from $190 and kept its overweight buy rating. People like AMD's deepening internal open-source software. For the Club, we own Nvidia and Broadcom, which got a price target boost to $2,400 per share from $1,650 at Rosenblatt. The analysts maintained their buy rating on Broadcom. Rosenblatt sees upside to Broadcom's fiscal 2024 recently increased sales target. Nvidia and five other Club tech stocks dominate the market, and we think they should.
Despite setbacks, Pfizer is pushing ahead with its experimental once-per-day weight loss pill. The drugmaker plans additional early-stage trials in the second half of the year. Pfizer is trying to break into the GLP-1 market dominated by Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Mounjaro and Zepbound.
Piper Sandler raises its Hims & Hers price target to $18 per share from $16. TD Cowen goes to $25 from $15. I really like this one on GLP-1s. Compounded formulations are temporarily allowed because of the shortages of the branded drugs. Hims & Hers said it will eventually offer the brands when the shortage is over.
Piper Sandler cut its Estee Lauder price target to $108 per share from $141 but kept its neutral rating. The analysts said the biggest risk is whether a wary consumer is willing to pay for luxury. The Club stock has been just awful as it struggles in China.

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

What Investing Club members are reading right now

The Investing Club is upgrading Microsoft after earnings. The stock has pulled back enough lately.
AMD jumps on earnings report that validates the Investing Club's decision to reinvest in the stock.
Starbucks' turnaround takes an encouraging step forward. Jeff Marks explains what the Investing Club wants to see next.
Nvidia stock's recent decline may present a buying opportunity for some investors.

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.