My top 10 things to watch Wednesday, June 14
1. Fed day. Post-meeting policy statement at 2 p.m. ET. Fed chairman news conference 2:30 p.m. ET. An interest rate hike pause is expected, but the market doesn’t think such a move would be the end of the tightening. Hawkish commentary, remember, always scares someone who is braindead but has stock for sale. Ahead of the Fed’s decision, Club members watch our June Monthly Meeting live at noon ET.
2. The Dow, the S&P 500 and the Nasdaq are set for a relatively muted open as traders seem content to wait for the Fed. Before the bell on Wednesday, the latest wholesale inflation data supported the case for a rate-hike skip as did the numbers on consumer inflation out Tuesday morning.
3. International Energy Agency predicts big oil use this year and then a dramatic decline next year. Are these guys for real? Demand can’t drop as fast as IEA says. But someone will act on it, though. Our three oil stocks for the Club: Coterra Energy (CTRA), Pioneer Natural Resources (PXD) and Halliburton (HAL).
4. Insane, we all knew that there was more elective surgery going on, yet it took CEO of UnitedHealth (UNH) to say something. Shares of the Dow stock and Club holding Humana (HUM) both sink on the news. I wonder if investors will realize that the real winners might be Club names GE Healthcare (GEHC) and Johnson & Johnson (JNJ). We’ve been pounding the table to these for months.
5. Advanced Micro Devices (AMD) unveils its new artificial intelligence chip. AMD has fast processors. Good enough for Amazon (AMZN) cloud and Meta Platforms (META). But way slower than those from Nvidia (NVDA). Still, analysts raving about AMD and multiple price target boosts. (All of these stocks are Club names.)
6. Price targets on Meta raised at Piper Sandler ($310 per share from $270) and Wolfe Research ($330 from $300). Both firms keep their buy-equivalent ratings. Piper and Wolfe cite AI efforts.
7. Wells Fargo really likes Club name Microsoft (MSFT) because of the “flywheel” impact. The analysts keep overweight (buy) rating and $365-per-share price target.
8. Shocker: Club name Estee Lauder (EL) is so bad and yet Berenberg just upraded it to buy from hold. Price target of $243 per share, a 31% premium to Tuesday’s close. Analysts say it is time. We wrote about China’s slow post-Covid recovery and the potential of new stimulus, which could boost EL and our other stocks tied to the Chinese consumer.
9. Modelo Especial is now the No. 1 beer in the U.S., overtaking Bud Light, which has been mired in boycotts over a marketing campaign with a transgender influencer. Modelo, Corona and Pacifico is the Mexican beer triumvirate of Club stock Constellation Brands (STZ).
10. Remember to put in for your Cava, which will be the hottest offering of the year. I talked about the IPO of the popular fast-casual Mediterranean chain last night on “Mad Money.” Cava is set to price Wednesday evening and start trading Thursday. Cava saw nearly 13% revenue growth last year and first-quarter same-store sales up 28.4%.
(See here for a full list of the stocks in 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.