The stock market’s back near record highs, but a key space that drove it to those levels earlier in the year is still a way’s off and showing some troubling price action. Wolfe Research strategist Rob Ginsberg pointed out that, while the S & P 500 is within 1% from an all-time high set in July, the PHLX Semiconductor (SOX) index remains more than 14% below its all-time high. More than half of the index’s members are also in bear market territory, down 20% or more from their 52-week highs. “Semis just don’t act right,” Ginsberg wrote. .SOX YTD mountain SOX year to date This lagging spell comes as investors brace for one of the biggest earnings reports from the chipmaker sector. Nvidia is set to post second-quarter figures after the bell Wednesday. Analysts in general are bullish on the artificial intelligence darling ahead of the results. Truist’s William Stein, who has a buy rating on the stock, raised his price target to $145 from $140. The new forecast implies upside of 14.6% from Monday’s close. “Our regular dialog with component buyers & sellers reflected NVDA business trends continuing to improve. This, combined with publicly available data about AI investments & adoption lead us to raise estimates modestly,” Stein wrote. Perhaps this report is what the semiconductor space needs. However, “the bar is set quite high, and it looks like something bigger is brewing,” Ginsberg noted. Elsewhere on Wall Street this morning, Morgan Stanley named Coca-Cola a top pick . The bank also raised its price target on the stock to $78 from $70, implying upside of 10.1% from Monday’s close. “Coke is a great and unique “tweener” answer: a) fundamentally Coke is well positioned to post strong, above-consensus, and above-peer underlying LT OSG in our “Topline Landing” industry scenario as industry pricing drops off; but b) also offers attractive valuation, generally trading in-line to at relative discounts vs. [long-term] averages vs. key large-cap peers,” analyst Dara Mohsenian wrote.
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