My Top 10 Things to See on Friday, March 8
1. US Job Growth exceeded expectations (with payrolls increasing by 275,000 versus expectations for growth of 198,000), but the unemployment rate rose to 3.9%. Growth from the previous two months was also revised down, not as fast as initially reported. Flat salaries.
2. costco was ready to start: the retailer reported Solid quarterly results after Thursday's closing bell, despite a slight loss in sales and margins. Investors just wanted legendary veteran CFO Rich Galanti to raise membership dues before he retires next week. That elusive free surge catalyst has to wait. Just looking at the numbers, there was nothing to alter our bullish view of the stock.
3. chip maker Broadcom was bombed on Thursday until management said it expects AI revenue to account for 35% of total semiconductor sales in fiscal 2024, translating to more than $10 billion, compared to its previous expectation of 25%. Broadcom reported better than expected results, but did not increase its orientation. The server and phone parts of the business have not returned. Alright. Investors are primarily focused on AI, and for good reason: Broadcom is seen as the biggest beneficiary of the growing adoption of AI after the Club holding company. NVIDIA.
4. The turn in Gap It's real, I saw it with my own eyes. during my interview with CEO Richard Dickson. Shares of the retailer rose 8% after earnings far exceeded Wall Street estimates. Old Navy returned to growth for the first time in more than a year. Fashion designer Zac Posen agrees. Barclays, Evercore ISI, TD Cowen, BofA and Baird all increase their price targets.
5. Highly appreciated business software MongoDB It lowered its forecast for the first quarter and full year, but beat expectations for the fourth quarter. But let's see how much that matters. Davidson upgraded MDB to buy from hold. Other research firms, including Barclays and Mizuho, โโlowered their price targets.
6. Eli Lilly Shares fell 1% in pre-market trading after the U.S. Food and Drug Administration delayed approval of its Alzheimer's drug donanemab. Big surprise. The drug was expected to win approval this month. I hope this is very hard.
7. Marvel Technology again with a terrific AI business, but shares fell 6% after the chipmaker issued softer first-quarter revenue guidance. Still, many PTs increase because Marvell is part of the optical connection with Nvidia. It reminds me of Cadence, Armsand Advanced Micro Devicesthe latter received mini-NVDA love from analyst Ben Reitzes of Melius Research.
8. Burlington Stores is getting a lot of love from the street, replacing Ross Stores as the discount retailer that people want to push alongside dollar stores. Price target increases from Morgan Stanley, Loop Capital, BofA and Baird.
9. Documents regained its momentum, exceeding expectations and offering positive guidance for the first quarter. Efficiency and acceleration of income. Did Hellman & Friedman and Bain miss this one? The company could get more updates.
10. Oops: JPM upgrades General Electric to buy from hold. It is now the premium large-cap name in the aerospace sector. What a twist...
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