My top 10 things to watch Friday, Dec. 1
1. U.S. stocks edge lower in premarket trading Friday, with S&P 500 futures down 0.2%. The move comes after equities delivered their best monthly performance of the year in November. Bonds are mixed, with the yield on the 10-year Treasury hovering above 4.3%. And oil prices are down slightly, with West Texas Intermediate crude trading around $75 a barrel.
2. The Federal Reserve is likely finished raising interest rates but not yet ready to declare victory, The Wall Street Journal reports. “This leaves them on track to hold rates steady at their December meeting while maintaining public guidance that their next rate change is more likely to be an increase than a cut,” the story notes.
3. Shares of Ulta Beauty (ULTA) are up roughly 11% in early trading on the back of strong third-quarter results. Looks like a great holiday season for both mass and prestige.
4. Marvell Technology (MRVL) delivers a third-quarter earnings beat, with strong data-center growth. But the semiconductor firm slightly lowers its revenue forecast, weighing on shares in premarket trading.
5. Dell Technologies‘ (DELL) third-quarter revenue falls short of expectations, with the company flagging a weak corporate PC market — there is still no let-up. Shares tumble more than 4% in early trading.
6. Citi raises its price target on Lululemon (LULU) to $520 a share, up from $450, while maintaining a buy rating on the stock. The firm expects a third-quarter earnings beat when the company reports on Dec. 7, helped by strong China growth. It looks like a LULU Christmas.
7. JPMorgan lowers its price target on Moderna (MRNA) to $90 a share, down from $93, while keeping a neutral rating on the stock. The bank cites uncertainty around Moderna’s near-term financial outlook, which remains tied to Covid. In short, the vaccine maker still has a Covid hangover.
8. Barclays raises its price target on ServiceNow (NOW) to $765 a share, up from $641, while reiterating an overweight rating on the stock. The firm argues “we are in the middle of a year-end rally in software.”
9. Citi downgrades Spotify Technology (SPOT) to neutral from buy, with an unchanged price target of $190 a share. The firm applauds Spotify’s execution, but says the stock’s risk-reward is no longer compelling. The bank “sees a few reasons to be a tad more cautious,” including expectations of rising average revenue per user.
10. Barclays raises its price target on Workday (WDAY) to $309 a share, up from $274, while maintaining an overweight rating on the stock. The bank argues “we are in the middle of a year-end rally in software.”
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