My top 10 things to watch Wednesday January 1st. 4, 2023 1. Wall Street appears to be bouncing back after starting the first trading week of the new year with a decline. The club holding Apple (AAPL), Tesla (TSLA) and other mega-cap tech stocks sank on Tuesday. Although many of them were trying to bounce back in the pre-market. 2. Salesforce (CRM) announces the start of what we expected from the Club holding company. The company is laying off 10% of its staff and closing some offices as part of a restructuring. Co-founder Marc Benioff, future solo CEO, admits to over-hiring during the Covid pandemic. A very serious letter to the employees. 3. UBS sees a slowdown in the growth of Azure, the cloud computing offering from Microsoft (MSFT). Analysts are lowering their rating on the tech giant to neutralize buying and their price target at $250 per share from $300. Does this club name still have a lot to drop after already dropping? Goes to what multiple? We’ll be kicking this off on “The Homestretch”, our new audio feature to get you ready for the final hour of trading. 4. Wolfe Research twice downgrades Morgan Stanley (MS) for underperforming vs. outperforming (sell after buy). Analysts say the Club’s name sounds rich. We think the new MS is a gem that does well in downturns because CEO James Gorman set it up that way. 5. Club holding Emerson Electric (EMR) downgraded to neutral call on less opportunistic option at UBS. The research firm notes a slowdown in orders. We don’t see it and will most likely buy some. We expected industry downgrades, which continued into late 2022. Analysts also cut the price target to $100 per share from $118. 6. UBS takes club name Honeywell (HON) to sell long, looking for order compression. We do not agree. Honeywell was a huge win due to aerospace controls and firepower. How can they make a sale out of it? Maybe an opportunity for new members to buy. Analysts cut the price target to $193 per share from $220. 7. Nucor (NUE) began with a purchase from Bank of America. We thought of reusing this name after earning a lot of money. BofA says he can bounce back. We see this as a function of the government’s infrastructure efforts. The estimates are well below what NUE can do. BofA put US Steel (X) on sale list; Cleveland-Cliffs (CLF) as neutral. 8. GE HealthCare Technologies (GEHC) starts Wednesday. The separate company from General Electric (GE) is growing slowly like Medtronic (MDT), not like Club holding Danaher (DHR). GE wants to focus on its aerospace business. It plans to part ways with energy next year. 9. BofA raises Merck (MRK) rating to buy from neutral and price target at $130 per share instead of $110. Now? After its historic journey? Sloppy, sloppy, sloppy. Analysts downgrade Pfizer (PFE) to neutral after buying. In Pharmaceuticals and Healthcare, we love and own Eli Lilly (LLY) and Johnson & Johnson (JNJ). 10. Wells Fargo downgrades target (TGT) to equal weight from overweight (hold from buy), says there is significant deceleration. Analysts cut the price target to $142 per share from $170. Could it be the company most affected by the slowdown? Not clear. We own and love off-price retailer TJX Companies (TJX). (Jim Cramer’s Charitable Trust is long AAPL, CRM, MSFT, MS, EMR, HON, DHR, LLY, JNJ, and TJX. See here for a full list of stocks.) As a CNBC Investing Club subscriber 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 talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS, OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
My top 10 things to watch Wednesday January 1st. 4, 2023
1. Wall Street appears to be bouncing back after entering the first trading week of the new year with a decline. club outfit Apple (AAPL), You’re here (TSLA) and other mega-cap tech stocks sank on Tuesday. Although many of them were trying to bounce back in the pre-market.
2. Selling power (CRM) announces the beginning of what we were looking for Club attire. The company is laying off 10% of its staff and closing some offices as part of a restructuring. Co-founder Marc Benioff, future solo CEO, admits to over-hiring during the Covid pandemic. A very serious letter to the employees.
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