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What Cramer is watching Thursday — hot inflation slams stocks, sends bond yields soaring

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What I am looking at Thursday, Oct. 13, 2022 The Investing Club’s October “Monthly Meeting” livestream for members is at noon ET. Find the link 15 minutes ahead of time at the top of the CNBC homepage. Too late to sell, or not? We’ll explore that question and look ahead to the rest of the year. U.S. stock futures, in a volatile morning, turned sharply lower as bond yields reversed and soared on a hotter-than-expected September consumer inflation reading. It followed Wednesday’s report showing a bigger-than-expected gain in producer prices last month. Taken together, the data show the Federal Reserve has more work to do to control inflation. The market firmly expects a fourth straight 75-basis-point interest rate hike when the central bank meets next month. The Social Security cost-of-living increase will be 8.7% for 2023, the highest increase in more than 40 years. The last time it was higher was in 1981, when the increase was 11.2%. Ahead of the consumer price report, stocks in the U.S. premarket had soared earlier on reports that the U.K. government is re-thinking some of its proposed tax cuts that have slammed the pound recently. The U.K. currency surged on the speculation. Goldman Sachs starts Club holding Linde (LIN) with a buy rating and a $338 per share price target. This is an industrial secular grower and there are only a handful including Honeywell (HON), which is also a Club stock. Goldman says industrial gases like the kind U.K.-based Linde provide have a history of defensiveness. Wells Fargo is warming up to metaverse, which is the only shop to do so besides me. Analysts there like what they saw from this week’s Meta Connect event. We wrote Wednesday about how Wall Street, for the most part, is ignoring things at Club holding Meta Platforms (META) that can go right. Bernstein says it’s a make-or-break quarter for Meta. Bulls are at wits end. “No one uses Facebook anymore,” Bernstein says. Adds metaverse a dream. But keeps outperform (buy) rating and $195 per share price target. Credit Suisse cuts Club holding Apple (AAPL) price target to $190 per share from $201. Delta Air Lines (DAL) much better, roughly matching earnings and revenue estimates in the third quarter. Can the multiple expand here? CEO Ed Bastian tells CNBC that even transatlantic is strong: The experiential economy. Sees $1 per share to $1.25 current quarter earnings-per share. Business travel rebound. Everyone I know is traveling, and Bastian goes on to say you better be traveling. Walgreens Boots Alliance (WBA) comes in a little better than expected with its fiscal fourth quarter earnings-per-share and revenue. Sees good next year: EPS of $4.45 to $4.65 versus $4.51 expected. Deutsch Bank cuts its price target on Teradyne (TER), a maker of automated testing equipment for semiconductors, to $85 per share from $95 on waning customer demand and chip export restrictions. TER stock is at $72 so unrealistic PT. It will be like Applied Materials (AMAT). These companies are going to decline drastically as they are the intellectual property behind the best, latest, greatest semis. Macellum Advisors calls for a board refresh for Kohl’s (KSS) after a failed sale. Says there’s a shadow board of ineffective people who must be removed. Barclays lowers price target on Magellan Midstream (MMP), a provider of the transportation and storage of crude products, to $49 per share from $51. Surprising given the demand for oil. Barclays cuts XPO Logistics (XPO) price target to $65 per share from $75 on weaker logistics. BlackRock (BLK) adjusted third-quarter earnings-per-share $9.55 versus $7.07 expected. This is a huge beat. Revenue of $4.31 billion also beat. Average Q3 assets under management: $8.48 trillion versus $8.32 trillion consensus; lower that Q2’s $ 9.02 trillion. Citi downgrades American Express (AXP) to sell from neutral, cuts price target to $130 per share from $159. Citi sees mild recession but significant impact to EPS at Amex; forecasts higher than normal credit losses in 2024. (Jim Cramer’s Charitable Trust is long LIN, HON, META and AAPL. 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.

Jim Cramer on Squawk on the Street, June 30, 2022.
Virginia Sherwood | CNBC

What I am looking at Thursday, Oct. 13, 2022

The Investing Club’s October “Monthly Meeting” livestream for members is at noon ET. Find the link 15 minutes ahead of time at the top of the CNBC homepage. Too late to sell, or not? We’ll explore that question and look ahead to the rest of the year.

U.S. stock futures, in a volatile morning, turned sharply lower as bond yields reversed and soared on a hotter-than-expected September consumer inflation reading. It followed Wednesday’s report showing a bigger-than-expected gain in producer prices last month. Taken together, the data show the Federal Reserve has more work to do to control inflation. The market firmly expects a fourth straight 75-basis-point interest rate hike when the central bank meets next month.The Social Security cost-of-living increase will be 8.7% for 2023, the highest increase in more than 40 years. The last time it was higher was in 1981, when the increase was 11.2%.

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