Updates on Our Holdings Ahead of May Housing Report
Things could heat up for our shares in several names, with a housing report, Fed bank stress test and more on the horizon.
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*The May new home sales report is on deck, but Micron and bank stress test results after today’s close
*Housekeeping: Adjusting our panic point for BLDR shares
*Portfolio quick hits: United Rentals, Apple, Nvidia, Axon and Amazon
Other than quarterly results last night from FedEx FDX, the news flow was modest and with only a few bits of housing related data out this morning, it could remain so as equities begin trading this morning in anticipation of Friday’s inflation data. Those housing items are the latest weekly mortgage applications data before the market open and the May new home sales report at 10 a.m. ET, which is expected to show 0.64 million homes were sold on a seasonally-adjusted annual rate (SAAR) during the month.
When we pick over the new home sales report, we’ll be looking at that as well as the non-seasonally adjusted data to see if the strength we saw on that basis in the May housing starts and existing home sales continued. We’ll also examine the months of supply to see if it increased from April’s 9.1 month figure. Sticking with housing, the White House announced an initiative to help reduce housing costs, but at $85 million the program seems to be more election bark than bite.
Things could heat up after the market close for our shares of Nvidia NVDA, Marvell MRVL, Apple AAPL, Qualcomm QCOM, Universal Display OLED, Morgan Stanley MS and Bank of America BAC, depending on what we find in quarterly results from Micron MU and the results of the Fed’s bank stress tests.
In between today’s market open and what we’ll be watching after the close, be sure to tune in to our extended video recap of the quarter and our thoughts on the second half of the year. That video and transcript will be published around noon today.
Adjusting Our Panic Point for BLDR
When we picked up some additional shares of Builders FirstSource BLDR yesterday, we should have adjusted our panic point as well. We are making that change now, re-setting that panic point at $115 down from the original $130.
Portfolio Quick Hits
Citi initiated coverage on United Rentals URI with a buy rating and a $745 price target citing the outlook for North American non-residential construction
Apple AAPL shares were upgraded by Rosenblatt to buy from neutral with a $260 target. Evercore ISI also boosted its AAPL target to $250 from $220 given its view that iPhone shipment expectations for this year are too low.
Shares of NVDA saw their Citi price target boosted to $150 from $126, reflecting the firm boosting its 2025 and 2026 EPS estimates.
Axon AXON announced the U.S. Marshals Service has deployed Axon’s Taser 10 and will be piloting Axon’s VR Training solution as part of that roll out.
And mark your calendars! Amazon AMZN shared that the 2024 Prime Day event will be held on July 16 to 17. As you do that, take note that Bank of America lifted its AMZN price target this morning to $220 from $210.
At the time of publication, TheStreet Pro Portfolio was long NVDA, MRVL, AAPL, QCOM, OLED, MS, BAC, AXON and AMZN.
