My top 10 things to watch for on Tuesday, August 13th: 1. Controversial Starbucks CEO Laxman Narasimhan is out, effective immediately. Chipotle chairman and CEO Brian Niccol is in. The coffee giant named Niccol as its new CEO, effective September 9. Starbucks CFO Rachel Ruggeri will serve as interim CEO until Niccol takes over. Club Name Starbucks shares rose more than 10% on the news. Chipotle stock fell more than 10%. I’m pleased with this move. I admire Niccol and what he’s done with Chipotle, and he can do it with Starbucks. Fabulous working relationships and amazing brand recognition. Laxman was having none of it. 2. U.S. stocks rose early Tuesday after the producer price index for July came in lower than expected. This is the first of two major inflation reports this week. The consumer price index is due out Wednesday. Bond yields fell after the release of producer price data, which bolstered the case for a Fed rate cut. The market odds of the central bank cutting rates by 25 or 50 basis points in September are about 50-50. 3. After stronger-than-expected quarterly earnings and sales, Home Depot cut its full-year store sales. It now expects a 3% to 4% decline on comparables. The Dow Jones fell slightly. Still no turnaround in the consumer market. But there shouldn’t be one until the Federal Reserve cuts rates and home equity loans for renovation projects become cheaper. 4. Citi said Micron has an inventory problem in both PCs and wireless supply chains. I’m not sure that’s the case, since Micron just resumed its share buyback. 5. Bernstein basically throws in the towel on Warner Bros Discovery, saying the company missed all metrics. 6. Barclays upgraded Dell from underweight to hold from sell. The hype around artificial intelligence has now faded from the stock. Analysts are still cautious. 7. Sneaker company On Holding reported what seemed like a great quarter. The stock rose sharply but was then brought back down to earth. Up more than 2%. 8. Enterprise software is out. But Monday is in. It helps centralize work processes. 9. Stifel sees weakness in the consumer and analysts lowered their price target for Target to $147 per share from $170. Actually a catch-up, since the stock closed at $135 on Monday. Analysts maintained their hold rating. 10. CrownRock Holdings is trying to raise as much as $1.7 billion by selling 29.5 million shares of Occidental Petroleum, Bloomberg reported. Subscribe to my free email newsletter, Top 10 Morning Thoughts on the Market (see a full list of Jim Cramer’s Charitable Trust stocks here). As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after he issues a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has discussed a stock on TV on CNBC, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS AND WILL NOT BE CREATED BY RECEIVING INFORMATION RELATED TO THE INVESTING CLUB. NO PARTICULAR RESULT OR PROFIT IS GUARANTEED.
Chipotle Mexican Grill CEO Brian Niccol speaks with CNBC’s Kate Rogers at the CNBC Evolve conference in Los Angeles on November 19.
Jesse Grant | CNBC
My top 10 things to see on Tuesday, August 13th
1. Contested Starbucks CEO Laxman Narasimhan has resigned immediately. Brian Niccol, Chairman and CEO of Chipotle is in. The coffee giant has named Niccol as its new CEO, effective September 9. Starbucks CFO Rachel Ruggeri will serve as interim CEO until Niccol takes the helm. Starbucks shares rose more than 10% on the news. Chipotle shares fell more than 10%. I’m delighted with this move. I admire Niccol and what he’s done with Chipotle, and he can do it with Starbucks. Fabulous working relationships and amazing brand recognition. Laxman had none of that.
2. US stocks rose early Tuesday after the producer price index for July came in lower than expected. It is the first of two major inflation reports this week. The consumer price index will be released on Wednesday. Bond yields fell after the PPI data, which bolstered the case for a Federal Reserve rate cut. The market odds are roughly 50-50 on whether the central bank will cut rates by 25 or 50 basis points in September.
3. After stronger-than-expected quarterly earnings and sales, Home Depot has lowered its sales figures for the full year: The company now expects comparable sales to decline by 3 to 4 percent. The Dow Jones fell slightly. There is still no turnaround among consumers. But there shouldn’t be one until the Federal Reserve lowers interest rates and home equity loans for renovation projects become cheaper.
:max_bytes(150000):strip_icc()/GettyImages-2166761607-ab8ed59073b949d1bc41622f29af2f62.jpg "5 things you should know before the stock market opens")
