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Shares of Tesla were upgraded to Buy from Hold by Morgan Stanley analyst Adam Jonas.
Courtesy Tesla
Stocks traded higher Monday as investors looked ahead to U.S. inflation data later in the week and pondered what influence the consumer price index and producer price index readings will have on monetary policy from the Federal Reserve.
These stocks were making moves Monday:
Tesla
(ticker: TSLA) rose 6.4% to $264.30 after shares of the electric-vehicle maker were upgraded to Buy from Hold by Morgan Stanley analyst Adam Jonas, who also boosted the stock’s price target to a Wall Street high of $400 a share, up from $250. The upgrade centers around artificial intelligence with Jonas writing that
Tesla
“has developed an advanced supercomputing architecture that pushes new boundaries in custom silicon and may put Tesla at an asymmetric advantage in a $10 trillion total addressable market.”
Qualcomm
(QCOM) jumped 3.6% after the semiconductor company extended an agreement to make modem chips for
Apple
‘s (AAPL) iPhones through to 2026.
American depositary receipts of
Alibaba
(BABA) fell 1.4%. Hong-Kong listed shares of
Alibaba
declined 3% after Daniel Zhang, former chairman of the e-commerce giant, stepped down as chairman and chief executive of its cloud business unit. Alibaba is aiming for a public listing of its cloud unit, the company’s second-largest business by revenue.
J.M. Smucker
(
SJM
), the food company famous for jams and jellies, reached an agreement to buy
Hostes Brands
(TWNK) for about $5.6 billion, or $34.25 a share. The deal represents a roughly 54% premium to the stock’s closing price on Aug. 24, which was the last trading day before reports broke about the possibility of a deal. Hostess Brands surged 19% to $33.40. Smucker shares dropped 7.1%.
RTX
(RTX), the aerospace and defense company formally known as
Raytheon Technologies
,
dropped 6.2% after lowering its sales guidance due to a “rare condition in powder metal used to manufacture certain engine parts.”
Tenable
(TENB) gained 3.8% after the security software company was upgraded to Overweight from Neutral at
J.P. Morgan
.
Meta Platforms
(META), the parent company of Facebook and Instagram, is working on a new artificial-intelligence system intended to be as powerful as the most advanced model offered by OpenAI, the Journal reported.
Meta
aims for the new AI model to be ready next year, according to the Journal, which cited people familiar with the matter. Meta shares rose 2.3%.
Kenvue
(KVUE) was up 1.9% to $21.70. Shares of the company, which sells such products as Band-Aid, Listerine, Neutrogena, and Tylenol, were upgraded to Buy from Hold at
Deutsche Bank
and the price target was left unchanged at $27.
DoorDash
(DASH) rose 1.8% after the food delivery service was upgraded to Hold from Underperform at Jefferies.
Alphabet
(GOOGL) rose 0.5% as the Department of Justice finally will bring its three-year-old antitrust case against Google to trial beginning Tuesday. The DOJ argues that the
Alphabet
unit has an illegal monopoly in the internet search market.
Apple
(AAPL) shares slipped a day before the tech giant’s annual fall launch event, dubbed “Wonderlust” this year. The event is expected to focus on the debut of the iPhone 15. The most notable change to the phone likely will be a shift to the widely used USB-C standard port from
Apple
’s
proprietary Lightning connectors.
Write to Joe Woelfel at joseph.woelfel@barrons.com
