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Here’s a rapid-fire update on all 35 stocks in the Club’s portfolio, including a new buy

Jim Cramer ran through all 35 Club stocks during our September Monthly Meeting on Thursday.

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September 21, 2023

Stocks making the biggest moves midday: SolarEdge Technologies, Humana, Starbucks, Robinhood and more

A Solarpro employee installs a SolarEdge Technologies Inc. inverter at a residential property in Sydney, May 17, 2021.

Brendon Thorne | Bloomberg | Getty Images

Check out the companies making the biggest moves midday:

SolarEdge Technologies — The solar stock tumbled about 19% after the company reported $991 million in revenue, missing analysts’ estimates of $992 million, according to Refinitiv. SolarEdge also issued disappointing third-quarter revenue guidance.

CVS Health — The retail pharmacy stock gained 4% during midday trading Wednesday after the company posted strong earnings and revenue for the second quarter. CVS reported earnings of $2.21 per share on revenue of $88.9 billion, while Wall Street analysts expected $2.11 per share on earnings of $86.5 billion, according to Refinitiv.

Norwegian Cruise Line — The cruise stock sank 3.2%, a day after reporting weaker-than-expected guidance for the third quarter. Its second-quarter earnings, however, topped analysts’ estimates. Shares were also downgraded by Susquehanna to neutral from positive. The Wall Street firm said Norwegian’s return to pre-pandemic EBITDA margin will take some time.

Emerson Electric — Shares rallied 4% following Emerson Electric’s earnings and revenue beat for its fiscal third quarter. The company reported adjusted earnings per share of $1.29, topping the $1.10 expected from analysts polled by StreetAccount. Revenue was $3.95 billion, compared to the $3.88 billion expected by Wall Street.

Pinterest — The social media platform slid 4.9% despite beating expectations on revenue for the second quarter. Pinterest posted $708 million against FactSet’s $696.4 consensus estimate. Pintrest’s third-quarter revenue growth forecast, however, missed expectations.

Starbucks — Shares added 2.6% following the coffee giant’s earnings report was released. Starbucks adjusted earnings per share for the fiscal third quarter was $1, versus the 95 cents expected by analysts, per Refinitiv. However, revenue fell short at $9.17 billion compared to the $9.39 billion expected.

Advanced Micro Devices — The chipmaker’s shares declined 7.4% in reaction to its second-quarter earnings release on Tuesday after the bell. While the company posted better-than-expected earnings in the prior quarter, its forecast for the third quarter was weaker than analyst estimates amid a weak PC market. Several Wall Street firms, including Bank of America and JPMorgan, said that the company may be nearing the peak of its rally.

Humana — Shares popped 6% after the health insurer reported second-quarter adjusted earnings per share of $8.94, topping the $8.76 per share anticipated by analysts, per StreetAccount. Humana forecasted its Medicare Advantage business will grow by about 825,000 members in 2023.

Generac — Shares dropped nearly 24% after the company posted a second-quarter earnings miss. Adjusted earnings per share came in at $1.08, versus StreetAccount’s estimate of $1.16. The company also lowered its forecast for residential product sales in the second half, citing a softer-than-expected consumer environment.

Scotts Miracle-Gro — The stock sank 18% after the maker of consumer lawn, garden and pest control products reported an earnings and revenue miss for its third quarter. Scotts also forecast a bigger-than-expected revenue decline for the fiscal 2023 year.

Freshworks — Shares popped nearly 19% after the software-as-a-service company beat expectations for both earnings and revenue. Canaccord Genuity upgraded the stock to buy from hold and hiked its price target to$25 from $15, suggesting 37% upside from Tuesday’s close.

Robinhood — The retail brokerage’s stock shed more than 4% ahead of the company’s quarterly results, due after the bell. Analysts are expecting a quarterly loss of 1 cent, according to StreetAccount.

Paycom Software — Shares tumbled 18.6% despite the payroll provider’s earnings and revenue beat after the bell Tuesday. However, the company’s revenue guidance for the third quarter was $410 million to $412 million, compared to the $412 million expected from analysts polled by StreetAccount.

Chinese tech stocks — Shares of Chinese technology stocks dropped after regulators in China proposed limits on smartphone use for minors. U.S.-listed shares of JD.com, Baidu, Alibaba and Tencent Music were all down roughly 5%.

— CNBC’s Hakyung Kim, Pia Singh and Alex Harring contributed reporting.

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August 2, 2023

These non-tech stocks are ‘back from the dead.’ Here’s where we stand

A number of Club stocks that were unloved on Wall Street earlier in the year have seen their fortunes rebound in recent months, including oilfield-services firm Halliburton (HAL) and industrial Caterpillar (CAT) — creating potential opportunities to lock in gains. It’s been the year of technology on Wall Street. But, as Jim Cramer said Wednesday stocks in other parts of the market have started to come “back from the dead.” But how should investors navigate their positions in these resurrected stocks? In that vein, we screened our 35-stock portfolio to isolate the companies that have underperformed the S & P 500 so far in 2023 — meaning that, as of Wednesday’s close, they had gained less than 18.9% year-to-date. This allowed us to focus on a universe of stocks that haven’t necessarily been red hot like technology names such as Nvidia (NVDA), which has more than tripled in value this year. From there, we calculated each stocks’ lowest closing price since May 1 — roughly a month before this year’s rally started to broaden beyond tech — and how much each has climbed since that low to determine which have had the strongest momentum. We found eight stocks with double-digit percentage gains off their recent lows: Halliburton, Caterpillar, Wells Fargo (WFC), Constellation Brands (STZ), Emerson Electric (EMR), Coterra Energy (CTRA), Morgan Stanley (MS) and TJX Companies (TJX). Between May 1 and Wednesday’s close, the S & P 500 advanced 9.6%. Here’s a look at where we stand on these eight Club stocks, starting with the biggest gainer, Halliburton, and concluding with the eighth-best performer, TJX Companies. HAL 3M mountain Halliburton’s stock performance over the past three months. Recognizing Halliburton’s recent strength, we trimmed our position in the oilfield-services firm last week , locking in a small profit. Its second-quarter earnings report Wednesday underscored the company’s cash-generation abilities, and drilling activity may pickup further if oil prices climb. Plus, the stock remains cheap on a historical basis. Taken together, we’re comfortable holding onto our Halliburton position. CAT 3M mountain Caterpillar’s stock performance over the past three months. Similar to Halliburton, we made a disciplined, 30-share Caterpillar sale on July 10 because the stock’s strong momentum allowed it to break above our cost basis. We wanted to make sure we didn’t give back any of that move higher in what’s proven to be a battleground stock. Still, our multiyear thesis around CAT as an infrastructure spending winner remains intact, and we’re willing to let the position ride here. WFC 3M mountain Wells Fargo’s stock performance over the past three months. Wells Fargo is finally getting the respect it deserves, after issuing better-than-expected second-quarter results and raising its 2023 net-interest income guidance. The stock remains attractively valued — trading at 9.6 times forward earnings versus its five-year average of 11.4, per FactSet — and carries a respectable dividend yield around 2.5%. Those are reasons to feel comfortable owning it. But from a portfolio management perspective, Wells Fargo now carries a nearly 5% weighting, making it our second-largest holding behind only Apple (AAPL). For that reason, we may look to trim some WFC if its rally continues. STZ 3M mountain Constellation Brand’s stock performance over the past 3 months. Our outlook on Constellation Brands is even brighter knowing activist investor Elliott Management is involved and sees “meaningful growth potential” for the Corona and Modelo beer maker. We booked some profits Monday in Constellation, taking advantage of its recent momentum, and now feel comfortable to let the position run as we wait for Elliott’s influence to lead to improved financial discipline at the company. “If you get frustrated, you end up selling too low,” Jim said earlier this week. On Thursday, he suggested STZ shares could reach $300 per share . EMR 3M mountain Emerson Electric’s stock performance over the past three months. Following the bounce off its May 31 low, Emerson Electric has broken above our cost basis — a very welcome development for this hot-and-cold position. If Emerson is able to mount another run higher, we may look to sell some stock because of our uncertainties around management’s execution. It’s no secret that the way Emerson’s National Instruments acquisition played out left us frustrated. CTRA 3M mountain Coterra Energy’s stock performance over the past three months. Coterra Energy is another stock on this list that we’re willing to just hold here. If its recent momentum fades and a meaningful pullback ensues, we may look to add to our fairly small position, at a roughly 1% weighting. Energy prices have increased, and we know that the oil-and-gas producer can break even with relatively low oil prices, which should bode well for free cash flow and capital returns to shareholders. MS 3M mountain Morgan Stanley’s stock performance over the past three months. Morgan Stanley’s stronger-than-expected quarterly results , released Tuesday, demonstrated that the bank’s once-struggling stock price didn’t reflect its underlying fundamentals. But, similar to Wells Fargo, portfolio management may eventually win the day. “Discipline always trumps conviction,” Jim said earlier this week . “My conviction is that Morgan Stanley’s stock goes higher. It doesn’t matter. My discipline says you already have too much of it.” As of Thursday, Morgan Stanley had the third-largest weighting in our portfolio, at approximately 4.5%. TJX 3M mountain TJX Companies’ stock performance over the past three months. The parent of TJ Maxx and Home Goods closed out Thursday just shy of Wednesday’s all-time high, validating our selective approach to the retail sector. While we’re always cautious about adding to a position near a peak, the story at TJX continues to look solid. Jim said last week he could see TJX ascending to $95 per share, representing more than 10% upside from Thursday’s close, at $85.44 apiece. The off-price retailer has an opportunity to gain market share not only due to Bed Bath & Beyond’s bankruptcy, but from consumers who are increasingly seeking out value. (Jim Cramer’s Charitable Trust is long HAL, CAT, WFC, STZ, EMR, CTRA, MS and TJX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Workers walk towards Halliburton Co. “sand castles” at an Anadarko Petroleum Corp. hydraulic fracturing (fracking) site north of Dacono, Colorado, U.S., on Tuesday, Aug. 12, 2014.

Jamie Schwaberow | Bloomberg | Getty Images

A number of Club stocks that were unloved on Wall Street earlier in the year have seen their fortunes rebound in recent months, including oilfield-services firm Halliburton (HAL) and industrial Caterpillar (CAT) — creating potential opportunities to lock in gains.

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July 20, 2023

Cramer: This is my game plan for the week ahead after Friday’s surprise rally

What the heck really did happen on Friday, when the Dow jumped 700 points on a strong jobs reading ? Why such a viscerally positive reaction to an employment number that was hotter than expected? Was it because wages didn’t spike? Was it all that perfect — a Goldilocks report? Here’s my take on Friday’s rally. Going into the debt ceiling crisis, there was a belief that House Speaker Kevin McCarthy couldn’t control his own Republican party. Senate Majority Leader Charles Schumer wasn’t much better off with the Democrats. Both had lost control of their parties to the extremists. That meant the United States would default on its debt. It seemed pretty logical. I truly believe the extremists never believed a default would mean more than a few weeks of setbacks and more brinkmanship. Who can blame them? President Joe Biden lamely floated that he could invoke the 14th Amendment to avoid this and any future debt limit fights; the amendment includes a clause that some legal scholars say overrides the statutory borrowing limit set by Congress. No matter what, it was pretty clear that chaos was our destiny. But when McCarthy and Biden agreed to temporarily suspend the debt ceiling and cap some federal spending in order to prevent a default, we got a deal that was even less contentious than the 2011 bargain . (The coming together brought to mind the legendary coalition of President Ronald Reagan and House Speaker Tip O’Neil in the 1980s, memorialized in Chris Matthews’ “Tip and the Gipper: When Politics Worked.”) It was the compromise debt limit deal — not the employment number — that caused the market to rally. Sure, the jobs report showed wage inflation was cooling, which is good news in the Federal Reserve’s fight against inflation. But the job creation in May and the revisions were insanely strong. What matters most is that Fed Chair Jerome Powell, who is far more powerful than the independents on the Fed’s board who have such a hard time keeping their mouths shut, is reasonable. He seems to understand that it’s time to wait a bit on any more rate hikes. Not because he thinks things are cooler, but because he actually doesn’t even know. We have a young workforce coming into the market akin to when I got out of school in 1977 — nary a job to be had anywhere. This is potentially a monumental moment. The new debt limit legislation sets the date for resuming federal student loan repayments, which have been on hold since March 2020. We have the end of Supplemental Nutrition Assistance Program (SNAP) benefits and other pandemic breaks. Why not wait two months to see if unemployment naturally goes up and wages come down? To sum things up: We came into Friday shocked that there was a shocker of a deal and a not-red-hot employment number (at least one that didn’t send rates higher). This is what triggered the long-awaited buying of stocks outside of the Magnificent Seven that have led the market all year: Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Tesla (TSLA), Meta Platforms (META), Apple (AAPL), and Nvidia , which briefly joined the $1 trillion valuation club. We each have our own way of monitoring these things. I used Club name Caterpillar (CAT) as my judge. On Thursday afternoon, CEO Jim Umpleby went into the lion’s den of Sanford Bernstein and told a tale about de-cyclization. Shares of the heavy equipment maker had a tiny snap back. One day later and armed with the budget deal and the employment number, CAT shot up seventeen points — an unheard-of short squeeze. This took the stock back to when it reported a good number that was converted into a bad number by bearish analysts still unwilling to admit that the company had changed its bi-polar ways. Of course, the bears would say that it only went up because of one more silly stimulus by China, this time to adjust rents. I say Caterpillar went up because it was overly shorted, like so much of the market, including retail, health care, financials, other industrials including the commodities (the oils!). We even saw the imperfect chipmakers and heavily challenged enterprise software stocks come alive. The shorts were correct to press their bets if there was no debt deal and we got an employment number that was a steamer. But they were wrong on both counts. This plus a rare wave of new money coming in and massive buybacks by companies capable of plundering after their reports, caused the broadening that had been bemoaned as non-existent as recently as the day before. You could argue it was a short squeeze of monumental proportions. A short squeeze happens when short sellers having to buy stocks to cover their short positions, pushing prices higher. But every time there has been a broadening since FANG, it’s always been called a short squeeze. That’s just how things work, although it’s never been acknowledged by anybody. Which brings us up to date for Monday. We have a blackout of the Fed speakers. We have no real macroeconomic data. We have no landmines of earnings. And no Fed meeting until mid-June. A true interregnum. We are going to have to take more things off the table if we get a rally into an overbought setting. Yes, we have some real stinkers — Disney (DIS), Foot Locker (FL), Emerson Electric (EMR), Estee Lauder (EL) — and we can battle them. But the important thing is that we have so many winners that we have to ring the register on some stocks if all goes our way. Of course I obsess on the losers. I didn’t think that Fabrizio Freda at Estee Lauder and Mary Dillon at Foot Locker could both blow it that badly. I had reason to dislike the Emerson team, but it still gave me more than I can handle. I have no idea how Disney’s stock could be this weak in a long-on-money-short-on-time moment. I am furious at myself for not seeing around any of these corners. But I am not going to throw good money after bad and I see no good on these names — yet. This leaves us with the big question: Which winners to trim? As long as we are not subsidizing losers, we aren’t breaking protocol. But we have two tasks. One is to come up with a new name that hasn’t moved that we actually like. And two is to trim into strength as we get overbought. I want both resolved by our next Club meeting on June 14. That’s what I am working on right now. Do we need so much Salesforce (CRM), even as it reported a good quarter all things considering? Do we even need Advanced Micro Devices (AMD) when it has nothing to rival Nvidia? I just don’t know. I want the market to tell me what to do. I think it will. Where does this leave us? In a sanguine week that will allow us to see if the short squeeze continues. If it does and continues to broaden, we can both peel some winners. See which caterpillars can develop into, well, Caterpillars. Maybe add Take-Two (TTWO), which gave us a two-year outlook, possibly aided by a new Grand Theft Auto game and better Nvidia cards. Just one of many ideas. But one Jeff Marks and I are trying to get our arms around. Some who read might ask: “Shouldn’t there be more of a thesis behind a bullish move?” I say no, no more than you needed in 2011, when the debt ceiling deal led to a fantastic rally because Armageddon was avoided. We cannot sit back and relax. But what we can do is accept that it is a better moment than we thought not that long ago. There are cracks. The Dollar General (DG) call was a compendium of weakness for the lower middle class and the Macy’s (M) call was a confusion of negativity. But who is to say that these companies just don’t have the “it” of Five Below (FIVE) or Lululemon (LULU). We are close enough to the infrastructure money wave to handle another rate hike if we need it. But Powell recognizes the futility of another rate hike right now because it lowers mortgage rates, making his job even harder. What we can do is watch and wait as battlegrounds get resolved — like CAT did on Friday. We can anticipate better things from a Johnson & Johnson (JNJ) — especially with a 3M (MMM) deal — and from GE Healthcare (GEHC). We can lick our Estee and Foot Locker wounds. And we can be glad that we got through the debt deal and wax in the wave of new money that will at last be coming in. No, we can’t be complacent. Too many needs for the shorts to save themselves. They have been run over in so many places that they have to make a comeback somewhere. Their number didn’t get so strong before the debt ceiling deal that they can’t all cover at once. Nevertheless, we have enough money to put to work if we want to in a new name that hasn’t moved and has a special situation thesis. But I do not want to be so relieved as to think there is no woods, just that we are out of it for now. Personally, the last few weeks have been hard ones, ameliorated by members who have made money with the club. Some mistakenly believe that we missed this entirely rally. It galls me because I gave up being a hedge fund manager years ago and I know the truth: This may be the best we’ve ever been, and this time it is for you, not the entitled class. I thank you all for letting us have the floor to help and not be tools of the traders who have infiltrated our ranks. So let’s take and make some gains and be ready for the next storm after the calm, wherever it might be coming from. Rest up. We have gotten past the systemic chaos into business as usual, where we can glow in a world where stock picking matters. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

US President Joe Biden, accompanied by Speaker of the House Kevin McCarthy, Republican of California, arrives for the annual Friends of Ireland luncheon on St. Patrick’s Day at the US Capitol in Washington, DC, on March 17, 2023.

Saul Loeb | AFP | Getty Images

What the heck really did happen on Friday, when the Dow jumped 700 points on a strong jobs reading? Why such a viscerally positive reaction to an employment number that was hotter than expected? Was it because wages didn’t spike? Was it all that perfect — a Goldilocks report?

Here’s my take on Friday’s rally. Going into the debt ceiling crisis, there was a belief that House Speaker Kevin McCarthy couldn’t control his own Republican party. Senate Majority Leader Charles Schumer wasn’t much better off with the Democrats. Both had lost control of their parties to the extremists. That meant the United States would default on its debt. It seemed pretty logical.

I truly believe the extremists never believed a default would mean more than a few weeks of setbacks and more brinkmanship. Who can blame them? President Joe Biden lamely floated that he could invoke the 14th Amendment to avoid this and any future debt limit fights; the amendment includes a clause that some legal scholars say overrides the statutory borrowing limit set by Congress.

No matter what, it was pretty clear that chaos was our destiny. But when McCarthy and Biden agreed to temporarily suspend the debt ceiling and cap some federal spending in order to prevent a default, we got a deal that was even less contentious than the 2011 bargain. (The coming together brought to mind the legendary coalition of President Ronald Reagan and House Speaker Tip O’Neil in the 1980s, memorialized in Chris Matthews’ “Tip and the Gipper: When Politics Worked.”)

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June 4, 2023

Jim Cramer’s top 10 things to watch in the stock market Thursday

My top 10 things to watch Thursday, May 4 1. In a widely expected move, the Federal Reserve on Wednesday raised interest rates by 25 basis points — the 10th rate increase in just over a year. Fed Chair Jerome Powell indicated the central bank may pause rate hikes going forward, but did not suggest it would begin cutting anytime soon. The Fed must see weakness in wages to consider pulling back. 2. Regional bank stocks are under pressure, with PacWest Bancorp (PACWP) in focus. Shares of the California lender are down 39% in premarket trading, at just under $4 apiece, and it is reportedly considering a sale. “Leaving rates this high is going to continue this stress,” DoubleLine CEO Jeffrey Gundlach told CNBC. “I believe with a very high degree of probability there’s going to be further regional bank failures .” 3. The debt-ceiling debacle continues , with the U.S. hurtling towards a June 1 deadline by which it could default on its debt obligations. The 2011 debt standoff offers some lessons for investors. 4. Oil prices fell to their lowest level since Dec. 2021 on concerns over demand and an uneven economic recovery in China, before edging up Thursday. West Texas Intermediate crude — the U.S. oil benchmark — slid nearly 11% over the past three sessions and was flat in morning trading, at around $68 a barrel. 5. Club holding Apple (AAPL) is set to report quarterly results after the closing bell Thursday, with analysts predicting the iPhone maker will announce $90 billion in share buybacks and dividends. We also got a potential readthrough from Club name Qualcomm (QCOM) Wednesday when the chipmaker announced a weaker-than-expected forecast for handsets on the back of slower demand in China. 6. A slate of banks on Thursday lower their price targets on Estee Lauder (EL) after shares of the Club holding plunged more than 20% Wednesday on weak forward guidance. Wells Fargo reduces its price target on the prestige beauty name to $225 per share, from $290, while Citi drops its target to $240 a share, from $295. 7. Mizuho lowers its price target on Club stock Emerson Electric (EMR) to $90 a share, from $103, and maintains a neutral rating, noting moderating demand in the discrete manufacturing market. Emerson on Wednesday delivered a solid fiscal second quarter , while raising its full-year outlook. 8. Citi says Yum! Brands ‘ (YUM) post-earnings selloff is a buying opportunity, with the stock closing down nearly 4% on Wednesday. The firm raises its price target on YUM to $172 a share, from $170, while reiterating a buy rating on the stock. 9. Club holding Costco Wholesale ‘s (COST) same-store sales for April rose 1.4%, compared with a 1.1% decline in March, the retailer reported Wednesday. Truist on Thursday lowers its price target on COST to $568 a share, from $571, but maintains a buy rating on the stock for its “extreme value proposition.” 10. Kellogg (K) delivers better-than expected first-quarter results Thursday, with adjusted earnings-per-share coming in at $1.10, compared with analysts’ forecasts for $1 a share. The food manufacturing company also raises its adjusted-basis operating profit growth to be in a range of more than 8% to more than 10%. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

My top 10 things to watch Thursday, May 4

1. In a widely expected move, the Federal Reserve on Wednesday raised interest rates by 25 basis points — the 10th rate increase in just over a year. Fed Chair Jerome Powell indicated the central bank may pause rate hikes going forward, but did not suggest it would begin cutting anytime soon. The Fed must see weakness in wages to consider pulling back.

2. Regional bank stocks are under pressure, with PacWest Bancorp (PACWP) in focus. Shares of the California lender are down 39% in premarket trading, at just under $4 apiece, and it is reportedly considering a sale. “Leaving rates this high is going to continue this stress,” DoubleLine CEO Jeffrey Gundlach told CNBC. “I believe with a very high degree of probability there’s going to be further regional bank failures.”

3. The debt-ceiling debacle continues, with the U.S. hurtling towards a June 1 deadline by which it could default on its debt obligations. The 2011 debt standoff offers some lessons for investors.

4. Oil prices fell to their lowest level since Dec. 2021 on concerns over demand and an uneven economic recovery in China, before edging up Thursday. West Texas Intermediate crude — the U.S. oil benchmark — slid nearly 11% over the past three sessions and was flat in morning trading, at around $68 a barrel.

5. Club holding Apple (AAPL) is set to report quarterly results after the closing bell Thursday, with analysts predicting the iPhone maker will announce $90 billion in share buybacks and dividends. We also got a potential readthrough from Club name Qualcomm (QCOM) Wednesday when the chipmaker announced a weaker-than-expected forecast for handsets on the back of slower demand in China.

6. A slate of banks on Thursday lower their price targets on Estee Lauder (EL) after shares of the Club holding plunged more than 20% Wednesday on weak forward guidance. Wells Fargo reduces its price target on the prestige beauty name to $225 per share, from $290, while Citi drops its target to $240 a share, from $295.

7. Mizuho lowers its price target on Club stock Emerson Electric (EMR) to $90 a share, from $103, and maintains a neutral rating, noting moderating demand in the discrete manufacturing market. Emerson on Wednesday delivered a solid fiscal second quarter, while raising its full-year outlook.

8. Citi says Yum! Brands‘ (YUM) post-earnings selloff is a buying opportunity, with the stock closing down nearly 4% on Wednesday. The firm raises its price target on YUM to $172 a share, from $170, while reiterating a buy rating on the stock.

9. Club holding Costco Wholesale‘s (COST) same-store sales for April rose 1.4%, compared with a 1.1% decline in March, the retailer reported Wednesday. Truist on Thursday lowers its price target on COST to $568 a share, from $571, but maintains a buy rating on the stock for its “extreme value proposition.”

10. Kellogg (K) delivers better-than expected first-quarter results Thursday, with adjusted earnings-per-share coming in at $1.10, compared with analysts’ forecasts for $1 a share. The food manufacturing company also raises its adjusted-basis operating profit growth to be in a range of more than 8% to more than 10%.

(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)

As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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May 4, 2023

Stocks making the biggest moves midday: Tesla, First Republic, KeyCorp, UBS and more

Image taken with a drone) A Tesla collision center is seen in this aerial view in Orlando.

Paul Hennessy | Lightrocket | Getty Images

Check out the companies making headlines in midday trading Tuesday.

Tesla — Shares popped 5% after Moody’s upgraded Tesla to Baa3 rating from its junk-rated credit. Moody’s called the electric-vehicle maker the “foremost manufacturers of battery electric vehicles” and said the upgrade reflects Tesla’s prudent financial policy and management’s operational track record.

First Republic, KeyCorp, U.S. Bancorp — Regional bank stocks rebounded on Tuesday as Treasury Secretary Janet Yellen said the government would consider backstopping deposits at more banks in order to protect the financial system. Shares of First Republic jumped more than 41%, while KeyCorp added 9%. U.S. Bancorp rose nearly 8%.

JPMorgan, Bank of America — Shares of larger U.S. banks rose on Tuesday as investors showed increased optimism after Yellen’s remarks. JPMorgan gained about 3% and Bank of America rose by 3.5%.

Foot Locker — Foot Locker gained 6% after Citi upgraded the retail stock to a buy from neutral after its investor day on Monday. The firm said the company’s move away from malls and toward digital, kids and loyalty projects is a step in the right direction.

Harley-Davidson — Shares of Harley-Davidson rose more than 5% after Morgan Stanley upgraded the motorcycle maker and said its focus on its core business can lift the stock by more than 30%. Jefferies also upgraded the stock, saying the company’s risk and reward are more balanced after a recent decline.

UBS — U.S.-listed shares of the Swiss-based bank gained 12% during midday trading following its agreement over the weekend to buy Credit Suisse for $3.2 billion. Credit Suisse rose 5% after taking a nearly 53% plunge on Monday.

Roblox — Shares rose more than 3% after D.A. Davidson said the online game platform has an “underappreciated” opportunity in artificial intelligence.

Emerson Electric — Shares added nearly 2% after Morgan Stanley said shares of the multinational tech company are too attractive to ignore . The firm upgraded the stock to overweight from equal weight.

Exxon Mobil — The oil and gas giant’s stock price gained 3% after Morgan Stanley said it likes the company’s robust “competitive positioning.”

— CNBC’s Alex Harring, Jesse Pound, Tanaya Macheel and Michelle Fox Theobald contributed reporting.

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March 21, 2023

We’re adding to an oil stock and see 3 other names as good buys in a down market

Markets are once again in selloff mode Friday.

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December 16, 2022

Tag: Emerson Electric Co