1. Palo Alto Networks (PANW) gets added to the S&P 500 index. CEO Nikesh Arora gets another 5 years at the helm, according to a company SEC filing. The Club holding had an excellent quarter. PANW up 5% early Monday, which would add to Friday’s record closing high and the stock’s more than 55% gain year to date.
2. Apple (AAPL) holds Worldwide Developers Conference (WWDC) on Monday. The Club name is expected to unveil a mixed-reality headset. Apple shares flirt with all-time intraday high of $182.94 from Jan. 4, 2022. Evercore ISI boots price target to $210 per share from $190. Keeps its outperform (buy) rating). I see a pick-up in services after my talk with Eddy Cue at CNBC’s CEO Council.
3. If the Fed were to pause interest rate hikes (market odds: 75% for a skip) at June 13-14 meeting, it could raise tension post-meeting because if we get hot numbers (CPI out June 13, PPI out June 14) the market is going to get hit. Friday’s employment report was hot, and it drove up the cyclicals in a rare, broad-based rally. I talked about our Club game plan for the week ahead in my Sunday column. Wall Street mixed early Monday.
4. OPEC+ was meeting a bust. Don’t trust the Saudis’ voluntary oil output cuts of an additional 1 million barrels per day. If Ukraine starts a spring offensive, the Russians will have to pump like mad. India will take it if China doesn’t need it. West Texas Intermediate crude prices get a bump higher after a rough stretch from mid-April into a choppy May.
5. Banks would have to raise capital requirements by 20%. U.S. regulators are reportedly considering that. Club holding Morgan Stanley (MS) would be affected by such a plan. I think this is what has taken MS shares down to their March levels after the Silicon Valley Bank failure kicked off a mini-crisis. Wells Fargo (WFC), our other Club bank stock, does not need more capital in my opinion.
6. Estee Lauder (EL): I know this Club name has been beleaguered. Oppenheimer says there’s another leg down. It’s been very hard to own after the slowdown in China post-Covid. However, I think it’s worth battling because CEO Fabrizio Freda has adjusted before and I think he will adjust again. Too low to sell.
7. KeyCorp downgrades Target (TGT) to sector weight from overweight (hold from buy). Already under pressure over boycotts over LGBTQ+ clothing, the analysts see increasing headwinds from new debt ceiling law setting date for resuming federal student loan repayments. I see the same thing as consumer seems to have everything they want, or are going to Club holding Costco (COST).
8. Citi analysts increase their price target on Advanced Micro Devices (AMD) to $120 from $85 after the stock’s huge run. Keeps neutral rating. Read our AMD commentary for members.
9. Oppenheimer increases price target on Meta Platforms (META) to $350 per share from $285. Keeps outperform (buy) rating. It’s the year of living efficiently. JMP Securities goes to $300 from $270. Keeps outperform. Page views better. Reels doing much better.
10. I do not believe that Dish Network (DISH) and Club name Amazon (AMZN) would combine. Those rumors have been around for years but reignited after all the telecoms deny a report that Amazon wants to offer wireless service for Prime members.
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