1. Which bank will fail this weekend? That’s really where we are now and the FDIC does not have any plan whatsoever to deal with it. PacWest (PACW) is the favorite to not have enough capital with no plan at all from FDIC Chairman Martin Gruenberg. After a rough session Thursday, regionals rebound early Friday and the Dow, the S&P 500 and the Nasdaq are also set to open in the green. Friday’s debt ceiling meeting was postponed until next week.
2. Wolfe downgrades Club name Disney (DIS) to peer perform from outperform (hold from buy) without a price target. Cites deteriorating streaming. I think that’s extreme but Disney CEO Bob Iger does need a plan. Citi analysts keep buy rating but trim price target to $125 per share from $130 after a disappointing quarter. We told members ahead of this week’s release that this was not the breakout quarter for Disney and Iger’s turnaround vision needs time to show up in the financials.
3. Mizuho downgrades cloud provider Twilio (TWLO) to neutral from buy. Suddenly feels macroeconomic pinch. Looks like small- and medium-sized businesses are now struggling. After Wednesday’s 12% drop on week guidance, the stock down Thursday and Friday, too.
4. Tesla (TSLA) raises prices on some electric vehicles. Usually means that Club stock Ford (F) adds a few cents. Hard game to play as Ford ramps up EVs.
5. Estimates coming down for life sciences and medical diagnostics company PerkinElmer (PKI). So are price targets. This stock joins Thermo Fisher (TMO), Illumina (ILMN) and Club name Danaher (DHR) with weakness because of a running out of capital by biotechs.
6. Citi raises price target on Trade Desk (TTD) by $2 per share to $78. Trade Desk offers cloud platform to optimize digital advertising campaigns. Brutal opponent to Club holding Alphabet‘s (GOOGL) Google.
7. Argus analysts downgrade Club holding Estee Lauder (EL) to hold from buy. Cites slower-than-expected post-Covid recovery in China. Last week, mixed fiscal third-quarter, along with dismal guidance slammed the stock.
8. Morgan Stanley survey: record 20 million members for Walmart+. That’s up 700,000 from prior survey. The analysts have overweight (buy) rating on Walmart (WMT). Separately, JPMorgan raises Walmart price target to $155 per share from $150. Keeps neutral (hold) rating. The analysts say WMT is “by far the most crowded long” in retail.
9. JPMorgan cuts price target on Target (TGT) to $175 per share from $205. Keeps overweight (buy) rating. The analysts cite TGT as a common short in retail.
10. BJ’s Wholesale (BJ) price target lowered by $2 per share to $65 at JPMorgan. Keeps underweight (sell) rating ahead of quarter. We like and own Costco (COST) as the best-in-class wholesale retailer.
(Jim Cramer’s Charitable Trust is long DIS, F, DHR, GOOGL, EL, COST. See here for a full list of the stocks.)
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