My top 10 things to watch Tuesday, December 6, 2022 1. US stock futures point to a mixed open after Monday’s strong selloff. December tends to be seasonal, especially at the end of the month when Wall Street historically looks for Santa’s rally. In a commentary, we looked at which Club stocks were the best and worst performers over the past twelve months of December. 2. Morgan Stanley moves JPMorgan (JPM) from overweight to underweight (buy to sell). Big call. The bank’s operating leverage is declining. In an interview with CNBC on Tuesday, JPMorgan boss Jamie Dimon said inflation was eroding consumer wealth and could cause a recession next year. 3. Oil hit $75 again. Bottom? Traders blame the stronger US dollar and economic uncertainty. On Monday, we reduced Halliburton (HAL), one of our oil holdings, on rising crude prices. Later in the session, prices fell and US oil prices fell another 1% on Tuesday. 4. Deutsche Bank updates club name Estee Lauder (EL) to buy pending; raises price target to $266 per share from $209. Analysts see difficulties behind the company. China forward. 5. Burlington Stores (BURL) put on US 1 list at Bank of America. In the off-price lens, the Club loves and owns TJX Companies (TJX), with the TJ Maxx, Marshalls and HomeGoods brands. Cowen and Barid raise their price targets. Cowen sees a way for TJX to have a $100 billion market cap. Warehouse automation trends should have the potential to drive wages down. 6. Bernstein begins coverage of Club Preferred Retailer Costco (COST) with an Outperform (Buy) rating. Costco reports quarterly results after the closing bell on Thursday. Bernstein starts Walmart (WMT) with market performance (hold) and Target (TGT) with outperformance (buy). 7. Deutsche Bank downgrades Molson Coors (TAP) to sell on hold. Difficult setup. Increased competition. Analysts take Boston Beer (SAM) for a pending sell. However, Deutsche Bank raises price target on Club holding and beer maker Corona Constellation Brands (STZ) to $249 per share from $244; maintain the rating. 8. Hundreds of job cuts are coming at PepsiCo (PEP), according to the Wall Street Journal. PepisCo is on the Club’s Bullpen watch list. Last month, Coca-Cola (KO) announced that it would restructure its North American business through a voluntary separation program that includes buyouts. 9. Big winner Gitlab (GTLB), up about 17% pre-release. The company helps build and digitize teams together on the cloud for less money. It looks like everyone else, but does it faster and cheaper, and you can save money in a year. New metric. Loss lower than expected and revenue higher than expected for the quarter. Boosted prospects. 10. President Joe Biden is set to join the founder of Taiwan Semiconductor Manufacturing Company (TSM) on Tuesday to announce the opening of a second chip factory in Arizona. TSMC is increasing investments in the state from $12 billion to $40 billion. The CEOs of Club holding companies Apple (AAPL) and Nvidia (NVDA) are also expected. (Jim Cramer’s Charitable Trust is long HAL, EL, TJX, COST, and STZ. 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 don’t do 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 Tuesday, December 6, 2022
1. US stock futures point to a mixed open after Monday’s strong sell-off. December tends to be seasonal, especially at the end of the month when Wall Street historically looks for Santa’s rally. In a commentary, we looked at which Club stocks were the best and worst performers over the past twelve months of December.
2. Double upgrade from Morgan Stanley JP Morgan (JPM) from overweight to underweight (buy sell). Big call. The bank’s operating leverage is declining. In an interview with CNBC on Tuesday, JPMorgan boss Jamie Dimon said inflation was eroding consumer wealth and could cause a recession next year.
