My top 10 things to watch Thursday, Sept. 3
1. S & P futures are flat this morning after the index snapped a three-day skid yesterday. Bonds are stable, with the 10-year Treasury yield down a couple of basis points. The recent rise in yields is making investors dump their expensive stocks and rotate into cheaper ones. Not as simple as saying "everything AI" is getting hit. It's the pricey ones most at risk in a higher-yielding world.
2. Broadcom 's quarterly results beat expectations , but its revenue guidance for the current quarter came in light, which is really a disappointment. Then CEO Hock Tan, with tremendous credibility, gave us an overtime save on the earnings call with a monster AI revenue guide for 2028. Which will predominate? Shares are off 3%. We cut this position in half ahead of the quarter, but we might have to hold the last. Bank of America lowered its price target to $460 from $530. Kept its buy rating.
3. Today's biggest earnings winner: Snowflake , the data analytics software maker. Shares are surging over 24% after issuing blow-away numbers for the quarter and guide. Strong momentum for its AI coding agent too. Turns out that, in the age of AI, the consumption model for data is even better than the consumption model for the cloud.
4. Hewlett Packard Enterprise is down 3% this morning despite the server maker's third-quarter earnings and revenue topping consensus. Also raised its growth outlook for next fiscal year. We've now seen great numbers this earnings season from Super Micro , Dell , and HPE. All three mostly sell Nvidia AI servers. Still, the Street is divided on HPE: Wells Fargo and Piper Sandler cut their price targets and stayed at hold. Citi raised its target and reiterated buy.
5. The server makers' quarters show Nvidia still has the crown, but the chipmaker is staying on offense, announcing a $12.9 billion deal to buy Hugging Face , a platform for open-source AI models. Jensen Huang has been talking up the importance of fostering a rich open source ecosystem. This is Jensen putting his money where his mouth is. In a CNBC interview this morning, Jensen confirmed there is as much as a $1 billion retention plan in place to keep all the Hugging Face employees, including the three founders. "The talent is everything," he added.
6. Barclays raised its price target on Adobe to $295 from $250. Kept its hold rating. Another grudging example of a stock taken down hard by aggressive shorting by Situational Awareness and anyone else piggybacking on the "long hardware, short software" trade. If this one can come back (up over 40% since June lows), they all can come back.
7. Microsoft will finally start reporting a quarterly revenue figure for its Azure cloud computing business. Previously, we were only given the growth rate each quarter. The breakout of Azure revenue shows acceleration of AI trade. Alongside yesterday's announcement, Microsoft said Azure's revenue last quarter was $29.4 billion. Solidly behind Amazon Web Services at $42.2 billion, but bigger than Alphabet's Google Cloud at $24.8 billion.
8. Still one more negative about Boeing : The Wall Street Journal's influential "Heard on the Street" column is ou t this morning with a story about additional liabilities uncovered at Spirit AeroSystems, the troubled fuselage supplier that Boeing bought in late 2025. Suboptimal performance lately for this Club name. A lot of that has to do with what the Iran war has done to fuel prices, but headlines like this don't help.
9. Another day, another price target hike for Oneok , the Oklahoma-based gas pipeline operator. This one gets fresh bullish Wall Street research seemingly every day. Citi went to $108 from $97 and kept its buy rating. Analysts like its acquisition of Brazos Midstream's assets in the prolific Permian Basin. Financing from Apollo is helping Oneok do the deal.
10. Rothschild & Co Redburn downgraded Moderna to sell from hold, arguing the market's overwhelmingly positive response to Moderna and Merck's promising vaccine trial update has gone too far. While the trial is only focused on a certain subset of melanoma patients, analysts said the reaction in Moderna would seem to indicate success in all types of tumor types, which they've seen "little to no data" to support. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
