My top 10 things to watch Tuesday, Oct. 8 1. Wall Street was headed for a higher open Tuesday after the S & P 500 had its worst session in a month. U.S. oil prices declined, pausing their recent rally on Mideast tensions. The 10-year Treasury yield pushed higher yet again, staying above 4% 2. Back from a weeklong holiday, the stock market rally in China faded as no new stimulus measures were announced at a highly anticipated news conference. Before the break, the Chinese central bank and the government unveiled a flurry of economic-boosting measures. But the market was looking for more. 3. PepsiCo lowered full-year organic revenue growth guidance for the second straight quarter. The soft drink and snacks giant beat on Q3 earnings but fell short of estimates on revenue. Organic revenue growth in the reported quarter was 1.3%. The estimates had been for 3%. 4. Club name Constellation Brands got a second downgrade this week. TD Cowen also went to hold and cut its price target to $270 per share from $300. They said that decelerating growth indicates macro pressures. We explored what’s at stake for the beer, wine and spirits giant in Monday’s commentary. 5. Honeywell announced plans to spin off its advanced materials division, which could be worth over $10 billion on its own. It’s big deal that’s not getting enough attention. The Club stock was up nearly 2% on the news. 6. Wolfe Research raised Wells Fargo to an outperform buy. The analysts said the multiple compression has already happened. The Fed-imposed asset cap for misdeeds under the former leadership is now six years old. That’s enough already. Club name Wells Fargo reports earnings Friday. 7. Nvidia and Foxconn, which also makes iPhones for Apple in China, are building Taiwan’s largest supercomputer, marking a milestone in the island’s artificial intelligence advancement. It will be built around Nvidia’s new Blackwell chip platform. 8. Oppenheimer downgraded Microsoft , which has been weak, with only a 9% gain year to date. The analysts think earnings and sales estimates are too high. Wells Fargo analysts see uncertainty as opportunity. The conflicting views on Microsoft came one day after Wall Street analysts cut ratings on Club names Apple and Amazon . 9. Abbott Laboratories was started as an outperform buy at Oppenheimer. The analysts are still worried about baby formula litigation. But that’s not as big of a deal after the FDA, CDC, and NIH said last week there’s no link between the specialized formula for preemies and a dangerous intestinal illness. 10. BTIG analysts downgraded American Express to sell, saying “unachievable 2025 expectations are baked in.” HSBC analysts also downgraded the stock but to a hold rating for basically the same reasons. Barclays hiked its Amex price target. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) 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.
My top 10 things to watch Tuesday, Oct. 8
1. Wall Street was headed for a higher open Tuesday after the S&P 500 had its worst session in a month. U.S. oil prices declined, pausing their recent rally on Mideast tensions. The 10-year Treasury yield pushed higher yet again, staying above 4%
2. Back from a weeklong holiday, the stock market rally in China faded as no new stimulus measures were announced at a highly anticipated news conference. Before the break, the Chinese central bank and the government unveiled a flurry of economic-boosting measures. But the market was looking for more.
3.PepsiCo lowered full-year organic revenue growth guidance for the second straight quarter. The soft drink and snacks giant beat on Q3 earnings but fell short of estimates on revenue. Organic revenue growth in the reported quarter was 1.3%. The estimates had been for 3%.
4. Club name Constellation Brands got a second downgrade this week. TD Cowen also went to hold and cut its price target to $270 per share from $300. They said that decelerating growth indicates macro pressures. We explored what’s at stake for the beer, wine and spirits giant in Monday’s commentary.
5.Honeywell announced plans to spin off its advanced materials division, which could be worth over $10 billion on its own. It’s big deal that’s not getting enough attention. The Club stock was up nearly 2% on the news.
6. Wolfe Research raised Wells Fargo to an outperform buy. The analysts said the multiple compression has already happened. The Fed-imposed asset cap for misdeeds under the former leadership is now six years old. That’s enough already. Club name Wells Fargo reports earnings Friday.
7.Nvidia and Foxconn, which also makes iPhones for Apple in China, are building Taiwan’s largest supercomputer, marking a milestone in the island’s artificial intelligence advancement. It will be built around Nvidia’s new Blackwell chip platform.
8. Oppenheimer downgraded Microsoft, which has been weak, with only a 9% gain year to date. The analysts think earnings and sales estimates are too high. Wells Fargo analysts see uncertainty as opportunity. The conflicting views on Microsoft came one day after Wall Street analysts cut ratings on Club names Apple and Amazon.
9.Abbott Laboratories was started as an outperform buy at Oppenheimer. The analysts are still worried about baby formula litigation. But that’s not as big of a deal after the FDA, CDC, and NIH said last week there’s no link between the specialized formula for preemies and a dangerous intestinal illness.
10. BTIG analysts downgraded American Express to sell, saying “unachievable 2025 expectations are baked in.” HSBC analysts also downgraded the stock but to a hold rating for basically the same reasons. Barclays hiked its Amex price target.
(See here for a full list of the stocks at Jim Cramer’s Charitable Trust.)
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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.
