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Jim Cramer’s Ten Key Factors to Monitor in Thursday’s Stock Market

Stocks to Watch on December 18

Key factors impacting the stock market include inflation data, earnings reports, and company upgrades and downgrades.

  • Stocks rise after inflation news
  • Micron boosts AI market
  • OpenAI's valuation discussed
  • Tesla focuses on self-driving tech
  • Lennar downgraded by Bank of America
  • GE Vernova upgraded by Jefferies
  • PayPal downgraded by Morgan Stanley

Stocks are showing gains today following unexpected consumer inflation data. Bond yields have fallen as a result, while major indices saw steep declines yesterday driven by a downturn in the AI sector.

Inflation Data and Earnings Reports

The Dow, S&P 500, and Nasdaq all faced significant drops yesterday, particularly the Nasdaq, which fell 1.8%. Later today, Nike will report its earnings, and analysts are examining what the company can do to improve its performance.

Micron’s stock surged 14% after it surpassed Wall Street estimates and increased its forecasts. The company produces memory and storage for data centers, highlighting its influence on the AI market, while other tech stocks are on shaky ground.

Company Performances and Downgrades

ServiceNow recently underwent a 5-for-1 stock split but has struggled following a downgrade by KeyBanc due to AI concerns impacting software companies. Lennar has received a sell rating from Bank of America as house prices return to 2019 levels.

In positive news, Jefferies upgraded GE Vernova, predicting a price increase, while Citi raised Sherwin-Williams’ rating. However, Morgan Stanley downgraded PayPal, citing anticipated slow growth and adjusting its price target.

OpenAI is reportedly negotiating deals that highlight its high valuation potential, which could impact large companies like Oracle. Meanwhile, Tesla is concentrating on self-driving and robotics, moving away from traditional car sales, thereby influencing competitors like Google.

This shift in focus has sparked discussions about the future of major tech investments, as other stocks in related sectors face significant downturns, complicating market strategies.

Sophia Clarke

Sophia Clarke

Senior International Journalist

United Kingdom – London Entertainment

Sophia Clarke is a senior international journalist with nine years of experience covering global politics, human rights, and international diplomacy. She earned her M.A. in International Relations and Journalism from the University of Oxford (2016), where she specialized in global governance, conflict reporting, and cross-cultural communication. Sophia began her career as a foreign correspondent for BBC World Service and later joined The Guardian, where her insightful analyses and on-the-ground reporting from Europe, the Middle East, and Latin America earned her recognition for accuracy and integrity. Now based in Paris, France, Sophia contributes to Faharas NET, providing comprehensive coverage of diplomatic affairs, humanitarian issues, and policy developments shaping the international landscape. Her storytelling combines investigative depth, journalistic ethics, and a strong commitment to amplifying underrepresented voices in global dialogue.

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FAQ

Why are stocks bouncing today?

Stocks are rising due to lower-than-expected inflation data.

What is Micron's role in the AI market?

Micron supplies essential components for data centers, boosting AI demand.

What is causing PayPal's downgrade?

Analysts predict sluggish growth, prompting a downgrade.