CNBC Investing Club: Top 10 Market Observations for September 22

Our top 10 things to watch Tuesday, Sept. 22 — CNBC Investing Club portfolio director Jeff Marks wrote today's newsletter.

1. Futures are indicating a relatively steady open following yesterday's AI-driven stock rally that sent the Nasdaq to its first record close since June and the S & P 500 to within 1% of its record.

2. Oil is extending its move lower to five straight sessions this morning on hopes that the Strait of Hormuz will fully reopen. The decline in crude is leading bonds to rally, pushing yields lower.

3. Jefferies raised its price target on Club name Meta Platforms to $875 from $710, citing the popularity of Muse. The analysts think the company's personal AI agent has the potential to be a killer app. JPMorgan said this could be the biggest consumer AI app since ChatGPT.

4. CPU stocks are looking to digest gains after yesterday's Muse frenzy. Advanced Micro Devices, Arm Holdings, and portfolio name Intel are the big three in CPUs. Remember, agentic workloads require more CPUs compared to GPUs in AI systems. AMD joined the $1 trillion club after Monday's near 10% rally. Intel is now up about 25% from its secondary offering price. It soared 12% yesterday.

5. Another price target hike on Microsoft, with Oppenheimer going to $570 from $515 after detailing a meeting at the company's headquarters. The analysts' thesis: Azure and M365 Copilot acceleration with capital discipline. Similar sentiments were expressed by Cantor Fitzgerald yesterday.

6. Swiss sports brand On Holding is targeting revenue growth in the high teens through 2029, with a push into other sports like golf and soccer. That means more competition in an already crowded space.

7. Another Switzerland-based company, Roche, said its experimental obesity injection lowered body weight by 15.5% at 48 weeks in a phase 2 trial. It could be competitive to the incumbents, but it's still years away from commercialization. Eli Lilly has the strongest obesity pipeline and current treatments. Lilly CEO Dave Ricks gave us more reasons to love owning the stock in a CNBC interview yesterday.

8. Citi analysts put KeyCorp on its 30-day positive catalyst watch list ahead of third-quarter earnings. The analysts also upgraded Fifth Third to buy from neutral. Both banks report earnings next month.

9. AutoZone misses fourth-quarter comp sales estimates: 2.7% reported vs. 3.8% expected. Earnings-per-share beat, while revenue missed. The stock is rallying this morning. CEO Phil Daniele said the company is poised for sales growth in fiscal 2027.

10. Valero and Marathon Petroleum were downgraded to hold from buy at Jefferies. The analysts cited a more balanced risk-reward after the stocks tripled over the past 24 months.