My top 10 things to watch Thursday, December 1, 2022 1. The new seasonal bull month starts higher after Wall Street closed a strong November with a powerful rally led by the Federal Reserve on Wednesday. Fed Chairman Jerome Powell said smaller future interest rate hikes are likely after four straight increases of 75 basis points. This is despite Powell also adding that he wants to see more progress on inflation. 2. The Fed’s preferred October inflation gauge was colder than estimates on Thursday morning. Much better than the previous month. The government’s monthly employment report came out on Friday. 3. Club holding Salesforce (CRM) saw the departure of co-CEO Bret Taylor, again leaving co-founder Marc Benioff as sole CEO. The real reason for Taylor’s exit really has to do with the huge opportunity he has from his experience as president of Twitter. Salesforce shares fall 7% in premarket. But I think that’s an overreaction and overlooks strong quarterly results. 4. Wedbush says the Microsoft (MSFT) – Activision Blizzard (ATVI) deal will work. Analysts took it about six months to complete. That means ATVI shareholders would lock in $95 per share, a premium of 28% at Wednesday’s close. 5. Snowflake (SNOW): I think CEO Frank Slootman is very conservative, light-hearted advice after better-than-expected earnings and revenue. The title fell 2% in pre-marketing. Slootman was on “Mad Money” Wednesday night. Media and retail companies use this data lake mining as the best place to learn how to compete with FAANGs. I know people think it’s bad for CRM, but I wonder if it’s bad for Microsoft. Better analytics here though. Several declines in price targets on Wall Street. 6. Costco Holding Club (COST) released with November sales figures: $19.17 billion, up 5.7% year-over-year. E-commerce sales fell 10.1% over the period. Shares fall in premarket. Costco will release its quarterly results next Tuesday after the closing bell. Costco shares fall nearly 3% in the premarket. On these lower sales, we made a big profit on our favorite retail stock. 7. Five Below (FIVE) blowout quarter and stocks jump over 9% in pre-market; in agreement with discount retailers. But not Dollar General (DG). Mixed third quarter. The outlook for the current quarter implies earnings per share of 7% to 8% compared to the previous forecast of 12% to 14%. Sharp decline in growth rate. The stock fell 6%. 8. PVH Corporation (PVH) reports a better than expected quarter. Why? Real buyers? Shares in the company behind the brands Tommy Hilfiger, Calvin Klein and Van Heusen jumped 10% pre-market. 9. Barclay’s raises price target on Club holding Honeywell (HON) to $229 per share from $212 and retains overnight quote (buy). Analysts there say that “HON’s catalyst and technology business accounts for about 7% of total revenue and has long been considered one of the company’s crown jewels.” 10. Okta (OKTA) shares jumped 17% in the pre-market after the identity cloud company reported a break even quarter as a loss of 24 cents was expected. Third-quarter revenue of $481 million was also better than expected. Forecasts for the current quarter and year are increasing. Wall Street analysts are divided, with some price target increases and some PT decreases. (Jim Cramer’s Charitable Trust is long CRM, MSFT, COST, and HON. See here for a full list of stocks.) As a CNBC Investing Club subscriber with Jim Cramer, you’ll receive a trade alert before Jim makes a transaction. 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 Thursday, December 1, 2022
1. The new seasonal bull month starts higher after Wall Street closed a strong November with a powerful rally led by the Federal Reserve on Wednesday. Fed Chairman Jerome Powell said smaller future interest rate hikes are likely after four straight increases of 75 basis points. This is despite Powell also adding that he wants to see more progress on inflation.
2. The Fed’s preferred October inflation gauge was colder than estimates on Thursday morning. Much better than the previous month. The government’s monthly employment report came out on Friday.
3. club outfit Selling power (CRM) saw the departure of co-CEO Bret Taylor, again leaving co-founder Marc Benioff as sole CEO. The real reason for Taylor’s exit really has to do with the huge opportunity he has from his experience as president of Twitter. Salesforce shares fall 7% in premarket. But I think this is an overreaction and overlooks strong quarterly results.
