Key Stock Market Factors to Monitor This Monday

Investors will want to keep an eye on several crucial developments in the stock market as trading resumes this Monday.

1. Stocks Expected to Rise

Market indicators suggest that stocks may open higher today following last Friday's drop of 1% in the S&P 500. The decline stemmed from concerns over tariffs and a weaker consumer sentiment assessment. All major indexes, including the S&P 500, Nasdaq, and Dow, faced modest losses last week.

2. Surge in Steel Stocks

Nucor Corp. and other steelmakers are experiencing a boost in pre-market trading. This follows President Donald Trump's announcement that he intends to impose a 25% tariff on all steel and aluminum imports. Nucor, based in North Carolina, has been acknowledged for its strong performance in the industry.

3. Nvidia at a Critical Juncture

Analysts at Evercore ISI have added Nvidia to their "Tactical Outperform" list ahead of the company's earnings report scheduled for February 26. They see potential in the stock, which has recently faced declines linked to concerns over its DeepSeek technology, and have maintained a price target of $190 per share.

4. McDonald’s Sales Update

Fast-food giant McDonald's revealed that it fell short of Wall Street's expectations for quarterly sales. However, earnings per share met the consensus. Notably, same-store sales climbed by a modest 0.4% despite a decline in the U.S. market, lifting McDonald's shares by over 1% in pre-market trading.

5. Home Depot's Positive Forecast

JPMorgan has increased its price target for Home Depot from $450 to $475. Furthermore, they added the retailer to their “Analyst Focus List,” predicting that the company's comparable store sales in the U.S. will rise by 1%, contrary to the market's consensus of a 2.4% decline.

6. Merck Faces Downgrade

In a downgrading move, TD Cowen has shifted Merck from a buy rating to a hold and cut its price target from $121 to $100. The analysts express concerns about the company's HPV vaccine, Gardasil, stating that clarity around it is lacking, alongside slow business development and upcoming loss of exclusivity for its cancer treatment, Keytruda.

7. Upgrade for Johnson Controls

UBS has upgraded Johnson Controls to a buy rating, driven by an optimistic outlook towards the incoming CEO Joakim Weidemanis. Analysts highlight the company’s favorable market conditions for expanding profit margins in HVAC, fire, and security sectors.

8. Palo Alto Networks Set for Earnings

Barclays noted that Palo Alto Networks is well-positioned ahead of its earnings report on Thursday. They anticipate positive results across key metrics like bookings and annual recurring revenue, despite the stock facing downgrades earlier this year.

9. Kraft Heinz Downgrade Summary

Analysts at Mizuho Securities have downgraded Kraft Heinz from outperform to neutral, citing the challenging environment for packaged food companies. The stock has struggled, falling 18.5% over the past year.

10. Shopify Pre-Earnings Prediction

Benchmark has upgraded Shopify from hold to buy prior to its earnings release on Tuesday. Analysts expect strong growth in gross merchandise value, which could drive favorable results for the e-commerce platform.

As trading activities commence, these developments warrant close attention from investors looking to navigate the current market landscape effectively.

stocks, earnings, tariffs