My top 10 things to watch Tuesday, Jan. 17, 2023
1. Bond yields are up so the stock market is down. Goldman Sachs (GS), a Dow component, is off more than 2.5% after misses on the top and bottom lines. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq all kept their 2023 bounce, with gains for a second straight week.
2. The Dow and S&P 500 go into Tuesday on a four-session winning streak. Markets were closed Monday for Martin Luther King Jr. Day. The Nasdaq is on a six-session roll. I see bullish signs emerging in the market but in different places than before. Though consolidation rekindles bears.
3. Declines in investment banking and asset management hurt Goldman’s fourth-quarter results. EPS of $3.32 per share versus $5.48 expected. Revenue of $10.59 billion versus $10.83 billion expected.
4. Club holding Morgan Stanley (MS) exceeded estimates with fourth-quarter revenue of $12.75 billion. Adjusted earnings-per-share of $1.31 also appears to be a beat. Wealth management was up year over year; net interest income benefited from higher rates. Morgan Stanley shares are up roughly 2%.
Listen to “The Homestretch,” our new daily audio feature exclusive to Club members. It’s a way for me to help you get ready for the final hour of trading. Look for our text and email alerts.
5. Club holding Estee Lauder (EL): Oppenheimer big price-target increase to $300 per share from $245. Cites weaker dollar; Chinese traveling again and relaxed Covid measures at home. Remember, China is the biggest growth market for cosmetics, after duty-free.
6. Emerson Electric (EMR), a Club name, announces a proposal to buy National Instrument (NATI), whose stock surges 16%. Largely a test and measurement. Will help build out manufacturing. Emerson is building the second grid out.
7. Piper Sandler raises price target on Club stock Cisco Systems (CSCO) to $49 per share from $47; keeps neutral rating. The Dow component is set to report quarterly results after the closing bell on Feb. 15.
8. Wells Fargo analysts like the idea of a spinoff of ESPN/ABC at Disney (DIS); says it would add value to the Club holding’s stock. Wells Fargo has an overweight (buy) rating and a $125-per-share price target.
9. Wells Fargo downgrades Pfizer (PFE) to equal weight from overweight (hold from buy), with a $4-per-share price target cut to $50. Big call because Pfizer has been very strong. In pharma, we like and own Eli Lilly (LLY), which I’ve said could be the stock of 2023.
10. Bernstein says Tesla (TSLA) vehicle price cuts will have a “huge impact” on the electric automaker’s financials. Wells Fargo says the whole industry will be pulled down. Bank of America lowers price target on TSLA shares to $130 each from $135. Real worry. Jefferies is concerned, too; catch-up price target cut to $180 from $350. The stock closed Friday at $122.
(Jim Cramer’s Charitable Trust is long MS, EL, EMR, CSCO, DIS, LLY. 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.
