Top 10 Things to Watch: July 8

My top 10 things to watch Wednesday, July 8

1. Big sell-off this morning, with Dow futures down 400 points. S & P and Nasdaq futures are also sharply lower. WTI crude is up 4% after President Donald Trump declared the Iran war ceasefire "over" following a re-escalation of tensions. The U.S. military said it conducted retaliatory strikes against Iran for three ships hit in the Strait of Hormuz.

2. We're seeing more selling pressure on the chip stocks and other AI data center plays this morning, extending yesterday's steep declines. It's an unwind of parabolic moves higher, which is why I always recommend booking some profits on the way up in these kinds of names. Many of these stocks are in no man's land. Too late to sell, but too early to buy.

3. Apple announced plans to spend over $30 billion in a chip-supply deal with Broadcom , marking its largest U.S. manufacturing commitment to date. The agreement will lead to the production of over 15 million American-made chips. Broadcom on Monday disclosed an expanded partnership with Apple that runs through 2031. Broadcom's connectivity chips help Apple devices attach to cellular, WiFi, and Bluetooth networks. Both Club stocks are headed for a slightly lower open this morning.

4. Old Dominion Freight Line was upgraded to buy from hold at Wells Fargo, with analysts seeing further improvement in the rebounding freight cycle. Despite some concerns that freight stocks have already priced in much of that improvement, they argued that it's "too early to get defensive." For the Club, we own ODFL rival FedEx Freight and are optimistic on its post-spinoff future .

5. JPMorgan downgraded Ollie's Bargain Outlet to hold from buy, predicting comparable sales for the second quarter will miss expectations. Analysts are seeing higher-than-planned promotional activity, which could weigh on comp sales and gross margin. You have to be selective in retail stocks in this environment, but I do like Walmart here .

6. Kraft Heinz 's market share trends are improving, according to Wells, which also increased its price target to $25 from $23. Kept its hold rating, on a belief that valuation is full until top-line growth in North America returns. Still, it's not surprising to see early improvement with CEO Steve Cahillane now in charge. He's a proven leader with a good plan to fix the business .

7. Travelers was cut to hold from buy at Keefe, Bruyette & Woods. With shares up over 18% this year and 34% over the past 12 months, analysts believe the property insurer's stock is appropriately valued. They also noted rate increases are decelerating. Soaring insurance costs, especially in areas like homeowners insurance, have been a problem .

8. Startling call: Goldman Sachs upgraded RH to hold from sell and raised its price target to $155 from $86. That's still below yesterday's close of $163.70. Analysts said the luxury home furnishings company could see stronger sales and margin improvement in 2027 following several earnings misses. This stock has been a real dog, hurt by the sluggish housing market and tariffs.

9. Monster Beverage 's price target was upped to $105 from $97 at Wells Fargo, which reiterated its buy rating. Although the stock looks expensive compared to the rest of the market, analysts said it's justified given its history and currently strong fundamentals. The energy drink maker doesn't get talked about often, but its stock has been an incredible long-term performer, up over 1,300% in 15 years versus a 458% gain for the S & P 500.

10. Wells Fargo analysts started coverage of AT & T with a sell rating and price target of $18, implying nearly 15% downside. They are worried the telecom giant will likely lose ground to SpaceX 's Starlink in broadband internet and, further down the road, could be threatened by Starlink's mobile ambitions. These aren't exactly new concerns. Just take a look at AT & T's stock chart, with shares down over 20% in three months.

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