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

1. Wall Street was largely higher Thursday after another cooler inflation report. Before the open, an unexpected producer price index drop in May followed Wednesday’s unchanged consumer price index. The S&P 500 and Nasdaq rallied to record highs on the CPI data despite a cautious tone from the Fed.
2. The Fed, which left interest rates unchanged again, signaled only one cut this year after its two-day June meeting. That’s down from the three cuts projected in March. During Wednesday afternoon’s post-meeting press conference, Fed Chairman Jerome Powell said inflation is still too high and cuts will be data dependent.
3. The odds of a Fed rate cut in September shot up to 64% following Thursday’s PPI reading, according to the CME FedWatch tool. Despite projections from central bankers for just one cut in 2024, the market chances for a second cut in December went up, too. The 10-year Treasury yield was lower Thursday.
4. While Fed rate cuts would likely benefit the overall stock market, we identified nine portfolio names, from housing plays to autos, that could really get a boost. Rates determine whether borrowers can afford higher-priced things that usually require some kind of financing agreement.
5. Treasury Secretary Janet Yellen told CNBC on Thursday the $34.7 trillion national debt load is manageable as long as it stays around where it is relative to the rest of the economy. “We’re in a reasonable place,” Yellen said. The former Fed chair did say, however, that high rates are adding to the burden.
6. Broadcom delivered a huge, huge AI-driven quarterly beat and guidance raise. It also tamed VMware. We boosted our price target to $1,900 from $1,550. CEO Hock Tan said on the post-earnings call that non-AI semiconductors are sort of bottoming. Broadcom, following our other portfolio chip name Nvidia, announced a 10-for-1 stock split.
7. Tesla shares jumped more than 6% after CEO Elon Musk claimed that shareholders are set to approve his controversial $56 billion pay package. He also said a second resolution up for a vote to transfer Tesla’s state of incorporation to Texas is passing by a wide margin. He did not disclose specifics or the sourcing for these assertions.
8. Fresh off the Tom Brady roast, Netflix announced another live event: a hot dog eating contest between Joey Chestnut and Takeru Kobayashi on Labor Day. They are both past champions of the Nathan’s annual July 4 event. Chestnut was banned from the Nathan’s battle due to a deal with a plant-based hot dog brand.
9. Goldman Sachs restaurants: The analysts love CMG; DPZ, SG, QSR, and SHAK; and hate JACK and WEN. They are neutral on YUM and WING. They also love Club name Starbucks, seeing signs of bottoming with new initiatives in place.
10. Wells Fargo raised its Casey’s General Stores price target to $415 per share from $340. The analysts cited a strong start to the convenience store operator’s three-year plan. Casey’s is one of my favorites for its breakfast pizza.

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