Jim Cramer's top 10 things to watch in the stock market Tuesday
CNBC ·
Key points
- The 10-year Treasury yield rose to 5.342%, a 24-year high, with the long bond around 5.683%, and oil prices climbing, yet stock futures were broadly positive led by the Nasdaq, signaling mixed risk appetite.
- Micron reported strong overall results and ongoing AI-driven supply tightness into 2027–2028, but premarket shares fell after guiding a weaker gross margin for the current quarter due to higher-cost inventory from incentive compensation.
- Google unveiled Gemini 4 Argon, its newest flagship AI model, marking a notable advancement in its AI capabilities and competitive positioning in the sector.
- Broadcom exceeded quarterly expectations but offered light revenue guidance for the next quarter; CEO Hock Tan projected an optimistic AI revenue path for 2028 during the earnings call.
- Investors eyed Anthropic for a potential fall IPO with a target valuation around $2 trillion, a figure that would exceed SpaceX’s late-2021 peak, underscoring the enthusiasm for AI-focused returns.
- The July PPI came in cooler than anticipated following a consumer inflation print that matched expectations, contributing to modest S&P futures gains and a view that rates could hold steady in September.
- A broad market rotation continued as higher yields prompted money to move from expensive stocks toward more affordable names, pressuring high-valuation tech equities in a higher-rate environment.
- Rothschild & Co Redburn downgraded Moderna to sell from hold, arguing the market’s positive response to vaccine trial news may be overstated given the trial’s limited scope.
- Ahead of Nvidia’s earnings, Raymond James lifted its price target to 352, signaling strong demand for Nvidia’s AI-driven growth, while noting momentum from both GPU sales and a growing CPU footprint.
- Overall market volatility remains elevated due to evolving yield dynamics and geopolitical tensions, with investors advised to stay informed and potentially adjust portfolios in response to new AI and macro signals.
Summary
Markets face a backdrop of rising yields and inflation data as the 10-year yield climbs toward multi-decade highs, while equities show cautious strength. Key developments include Micron’s cautious gross-margin guidance despite strong demand, Google's Gemini 4 Argon AI model release, Broadcom’s solid results with a soft near-term forecast but upbeat AI prospects, and chatter around Anthropic’s potential IPO valuation. Amid rotation into cheaper equities and volatility from yields and geopolitics, investors await Nvidia earnings and broader AI demand signals to gauge the next leg of momentum.
This summary was written with AI. The full story has every detail.