Stock Market Today: Peloton to $5?; Nintendo Switch to China


It was as a mixed session in the stock market today. Optimists will argue that the markets finished better than hoped for after the futures market pointed to notable losses set for the open. Pessimists will say that the market couldn’t climb even after a positive trade-war headline.

Stock Market Today

In truth, stocks finished about flat on Tuesday as we continue to await a decision on China. Reports hit the wires less than an hour before the open saying that the White House will likely not apply additional tariffs to China on Dec. 15.

Simply put, too many headlines — true, false and mixed — are driving the action right now. Let’s wait to see what actually happens and go from there.

Oh, and remember, the Federal Reserve announces its rate decision tomorrow and has a press conference afterward at 2:30 p.m. It’s not expected that the Fed will change rates.

Movers in the Stock Market Today

Agilent Technologies (NYSE:A) is up 1.5% on news that Bill Ackman’s Pershing Square acquired roughly 2.9 million shares of the company.

In other notable investor news, Citron hit Peloton (NASDAQ:PTON) with a 2020 $5 price target. They argue that Peloton has an elevated valuation compared to its peers and will see its float go from 40 million shares to 240 million after a lock-up expiration in March.

Netflix (NASDAQ:NFLX) is coming in hot with 34 Golden Globe TV and film nominations. The Crown and Unbelievable both got four nominations each, while The Irishman got five nominations. Netflix tops other services such as AT&T’s (NYSE:T) HBO with 15 nominations and Disney (NYSE:DIS) at just six.

While the news is good for Netflix, shares fell 3.4% on the day. It didn’t help that Needham analysts downgraded the stock to “underperform” from “hold.”

Nintendo (OTCMKTS:NTDOY) shares are in focus as its popular Switch device heads to China. The Switch has seen incredible demand in other international markets since launching in 2017, and it’s also given a boost to Nvidia (NASDAQ:NVDA), which supplies chips for the Switch.

Over 100,000 reservations were made to buy the Switch on (NASDAQ:JD). Adding China to the mix should give a boost to the more than 41 million units already sold worldwide.

It’s no surprise that Boeing (NYSE:BA) has been having some trouble with its 737 MAX models. But last month it hit 30 orders for the 737 MAX. It still has a lot of catching up to do after losing 84 orders for commercial planes this year and as forecasts call for 345 deliveries in 2019, its lowest total since 2008.

Apple (NASDAQ:AAPL) is seeing high holiday demand for the newly released iPhone 11. The lower cost iPhone 11 has been beating out the iPhone 11 Max and Pro in popularity, according to the analyst.

Heard on the Street

Domino’s Pizza (NYSE:DPZ) has been initiated with an “outperform” rating at RBC Capital Markets. The analyst also assigned a $337 price target, implying almost 19% upside.

Keybanc analysts raised Masco (NYSE:MAS) to an “overweight” rating and assigned a $52 price target.

KBW bumped State Street (NYSE:STT) to an “outperform” rating while cutting JPMorgan (NYSE:JPM) to a “market prefer” rating. They assigned price targets of $86 and $135.

Goldman Sachs was active on the day too, cutting McCormick (NYSE:MKC) to a “sell” rating and assigning a $140 price target. They also raised Parker-Hannifin (NYSE:PH) to a “buy” rating and assigned a $230 price target.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL, DIS, NVDA and T. 

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

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