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My Top Things to Watch Thursday, May 25
1. Nvidia (NVDA), a long-time Club holding company, soared almost 30% after Wednesday night’s explosive quarter and higher forecast. The stock is set to open at an all-time high, with a market value of nearly $1 trillion. Best trimester ever? I am not joking. I’ve been beating the table on Nvidia since 2017. I even renamed my dog Nvidia. Fearless and fierce: The demand for Nvidia’s high-powered chips to run artificial intelligence is nothing short of incredible. Wall Street price target increases are approaching two dozen. The highest PT of a few companies is $500 per share. Nvidia should open around $400.
2. No debt ceiling agreement with seven days until default deadline. House Speaker Kevin McCarthy said talks with Speaker Joe Biden are progressing toward a deal, with negotiators working after midnight. Sticking points include Republicans’ push for spending restrictions as part of a deal and Democrats’ desire for a clean deal.
3. Fitch fired a warning shot at Washington over the debt ceiling, placing the U.S.’s AAA credit status on “negative rating watch.” No one wants a replay of the summer of 2011 when a failed debt ceiling deal then led to a downgrade from Standard & Poor’s and a 17% drop in the S&P 500.
4. There will be a cover on the Dow due to debt ceiling issues. The 30-stock average tries to avoid five consecutive sessions. THE Nasdaq is ready for a big jump at the open on the Nvidia gain.
5. club outfit disney (DIS) remains in crisis. Shares trading below $90 per share. But there’s a note from Citi saying ESPN’s move to streaming could add $20 per share in net worth to the stock. What’s really going on here?
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