My top 10 things to watch Monday, Jan. 30
1. Big week ahead. Big run so far in 2023. The Dow, the S&P 500 and the Nasdaq, despite looking at a down open, have ripped higher this year as a new, broader bull market emerges. I wrote a eulogy to FANG in my weekly column. Created 10 years ago as the place to be. This market seems to be casting a much wider net. That means more money for the rest of the 500 companies in the S&P.
2. Earnings. Fed decision. Jobs. The week ahead has it all. Thirteen Club holdings, including nine on Thursday alone, are out. The Fed is expected to downshift and deliver a 25-basis-point interest rate hike at the end of its two-day meeting on Wednesday. Then on Friday, the government releases its January employment report.
3. Morgan Stanley’s Mike Wilson is sticking with don’t fight the Fed and earnings-per-share will disappoint. However, a fifth of the way through the S&P 500, we have not seen disappointment yet.
4. ODD call. Credit Suisse is bullish on Apple‘s (AAPL) quarter even though it has NOTHING to say that’s bullish. Just didn’t cut numbers. Wells Fargo is cautious ahead of the Club name’s results on Thursday.
5. Club holding Amazon (AMZN), which also reports its quarter Thursday, gets a price target increase at Credit Suisse to $171 per share from $142. Analysts there keep outperform (buy) rating. Seems forced unless price increases and job cuts are meaningful. Barclays cuts PT $130 from $140; keeps overweight (buy) rating.
6. Susquehanna raises price target on Advanced Micro Devices (AMD) to $88 per share from $80; keeps positive rating on the Club stock. Again, not much in the way of positive commentary concerning AMD’s upcoming quarter and guidance. But analysts think superior products in data center can help AMD prevail in the long run.
7. Morgan Stanley raises Salesforce (CRM) to $236 per share from $228. Material underpricing. Just over 21x underserved. Last week, we reported on a shake-up on Salesforce’s board as activist investors push for changes to increase shareholder value.
8. Baird increases price target on Starbucks (SBUX) to $110 per share from $94; keeps hold rating. North American comps are strong. Also, tailwind from China reopening after ditching zero Covid policy.
9. Interesting contrary call after a week quarter: Morgan Stanley upgrades Colgate-Palmolive (CL) to overweight from equal weight (buy from hold); price target unchanged at $82 per share. Deutsche Bank cut price target by $3 per share to $84. We prefer and own Procter & Gamble (PG) for the Club.
10. HSBC raises price target on oilfield services company Halliburton (HAL) to $57 per share from nearly $44; keeps buy rating. Analysts see solid outlook for 2023. We took some profits earlier this month in HAL near a 52-week high. But we still own 2,000 shares and agree with HSBC and others that like the stock in this elevated energy price environment.
(Jim Cramer’s Charitable Trust is long AAPL, AMZN, AMD, CRM, SBUX, HAL, PG. 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.
