My top things to watch Thursday, May 25
1. Nvidia (NVDA), a longtime Club holding, is soaring nearly 30% after Wednesday evening’s blowout quarter and guidance raise. The stock is on track to open at an all-time high, with a market value of almost $1 trillion. Best quarter ever? I’m not kidding. I’ve been pounding the table on Nvidia since 2017. I even renamed my dog Nvidia. Fearless and fierce: Demand for Nvidia’s high-powered chips to run artificial intelligence is just incredible. Price target hikes from Wall Street approach two dozen. The highest PT from a few firms is $500 per share. Nvidia is set to open around $400.
2. No debt ceiling deal with seven days until the default deadline. House Speaker Kevin McCarthy says talks with President Joe Biden are progressing toward a deal, with negotiators working past midnight. The sticking points are around Republicans’ push to get spending curbs as part of an agreement and Democrats’ desire for a clean agreement.
3. Fitch fired a warning shot to Washington over the debt ceiling, placing the United States’ AAA credit status on “rating watch negative.” Nobody wants a replay of the summer of 2011 when going down the wire on a debt ceiling deal then resulted in a Standard & Poor’s downgrade and a 17% decline in the S&P 500.
4. There’s going to be a lid on the Dow due to debt ceiling concerns. The 30-stock average trying to avoid five down sessions in a row. The Nasdaq is set for a big jump at the open on the Nvidia gain.
5. Club holding Disney (DIS) remains in crisis. Shares trading below $90 per share. But there’s a Citi note saying ESPN shift to streaming could add $20 per share in equity value to the stock. What the heck is really going on here?
(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)
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