My top 10 things to watch Wednesday, March 8
1. Day 2 for Fed Chairman Jerome Powell on Capitol Hill. He should be even more hawkish Wednesday before the House Financial Services Committee to raise expectations for a stepped-up half-point interest rate hike. Powell told the Senate Banking Committee on Tuesday that rates are likely going higher than previously expected
2. The Dow, the S&P 500 and the Nasdaq are set for a relatively flat open after Powell’s Senate testimony Tuesday knocked markets for a loop. The 2-year Treasury yield on Wednesday remains above 5%, a level breached Tuesday for the first time since 2007. Ahead of Friday’s government employment report, the ADP data on hiring in February at U.S. companies was stronger than expected.
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3. Barclays raises price target on Zillow (Z) to $30 per share from $24 but keeps underweight (sell) rating. Housing prices have not come down like they should. Shelter, food and wages are the stickiest areas of inflation. Campbell Soup (CPB) better than expected quarter. Organic net sales growth helped by the ability to raise prices.
4. Worthless price target bumps after CrowdStrike (CRWD) reports a terrific quarter. CEO George Kurtz on “Mad Money” later Wednesday. The question: Is cash flow positive enough and not GAAP positive? In cybersecurity, we like and recently started a position in Palo Alto Networks (PANW). Here’s a deep dive into what makes Palo Alto tick.
5. UBS says Club holding Apple‘s (AAPL) App Store revenue trending flattish quarter to date. I have never seen a decent prediction of this revenue stream. Analysts say the U.S. is still best market.
6. Industrial gas and engineering giant Linde (LIN) gets another price target boost: UBS goes to $410 per share from $375. That’s an over 15% premium to Tuesday’s close.
7. Are the shale wells really peaking? Big article in The Wall Street Journal on Wednesday. Also, Warren Buffett’s Berkshire Hathaway (BRK.a) buys more Occidental Petroleum (OXY). We own shares of oil and natural gas exploration and production companies Coterra Energy (CTRA), Devon Energy (DVN) and Pioneer Natural Resources (PXD) as well as oilfield services giant Halliburton (HAL).
8. Dick’s Sporting Goods (DKS) trend-followers predictably raise price targets AFTER a great quarter and AFTER the stock soars 11%. So meaningless and unhelpful.
9. Citi loves lithium industry after Tesla (TSLA) talks about goal of producing 20 million electric vehicles per year by 2030. Analysts cite lithium stocks Albemarle (ALB), SQM (SQM), Livent (LTHM) and Li-Cycle (LICY). Here we go again with these highest-risk companies.
10. Stitch Fix (SFIX) disaster: Shares of online styling company down more than 10% to around $4.50 ahead of open. Misses numbers really badly and CFO steps down. The stock up big year to date. But keep in mind, it lost more than 80% of its value last year.
(Jim Cramer’s Charitable Trust is long PANW, AAPL, LIN, CTRA, DVN, PXD, HAL. 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.