My top 10 things to watch Tuesday, Jan. 2 1. The S & P 500 finished 2023 with nine straight up weeks, its best winning streak since 2004. Up 24% for the year. We’re kicking off the new year by trimming 8 stocks that had huge runs last year. Bulls make money, bears make money, and hogs get slaughtered. We’ve been feeling greedy during this historic stretch, and refuse to be hogs after the great year these stocks have had. 2. Stock futures were lower Tuesday, led down by Apple , which was downgraded to sell from buy at Barclays. The analysts predict slow hardware sales and service revenue stream growth below 10%. Looking for a reversion. I am sympathetic to this position, with Apple trading at 29 times this year’s earnings forecast. UBS says sales are soft. Share fells 2% before the bell. 3. Deutsche Bank throws in the towel on Club name Estee Lauder , one of our worst picks (after being one of the best) because of slowing sales in China and Asia. Goes to hold from buy. Shares down more than 2% in the premarket. 4. BXP upgraded to buy from hold at Jefferies, which says that while headlines for broader office sentiment will remain negative, public sentiment for REITs will improve. This is one of the few winners in the space and I would not sell it. I also think the damage to the REITs in commercial real estate proved to be way overblown. 5. Goldman Sachs takes Parker-Hannifin to conviction buy from buy, exactly as you should do after a tightening cycle ends. This is what you want … same with Textron , which also gets upgraded to conviction buy. Meanwhile, Goldman downgrades Boeing to buy from conviction buy. I say too soon to downgrade but it does stay on buy list. 6. Bath & Body Works downgraded to buy from conviction buy at Goldman. Director’s cut.These retailers have made major moves already. 7. Expedia upgraded to hold from sell at Wells Fargo. This should never have been a sell. It is doing too well. So is Booking Holdings , to hold from sell at Wells. The two best. 8. Barclays raises price target on Bank of America to $43 from $39, citing net interest income troughs amid stabilizing deposit trends and loan growth. Also raised on Citi , JPMorgan , Morgan Stanley , Goldman Sachs and all the others. Seems a little gratuitous, but they all do trade together. Huntington Bancshares sell to hold — I really like this one. We like Morgan Stanley (to $116 from $102) and Wells Fargo (to $66 from $54 ). I would be sellers at those new targets, but you are supposed to buy these when the Federal Reserve stops tightening. Wells says Citi stock price will double over the next three years. 9. Deutsche Bank notches up price targets on Clorox and Colgate-Palmolive — decent risk reward. I think these are the wrong stocks to own at this point in the cycle. 10. Stifel takes up Advanced Micro Devices to $170 from $145. Likes semis with “ideal mix” of already having seen a correction, strong balance sheet and ties to secular trends like AI. 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.
A woman walks near the Apple store in New York, U.S., December 26, 2023.
2. Stock futures were lower Tuesday, led down by Apple, which was downgraded to sell from buy at Barclays. The analysts predict slow hardware sales and service revenue stream growth below 10%. Looking for a reversion. I am sympathetic to this position, with Apple trading at 29 times this year’s earnings forecast. UBS says sales are soft. Share fells 2% before the bell.
3. Deutsche Bank throws in the towel on Club name Estee Lauder, one of our worst picks (after being one of the best) because of slowing sales in China and Asia. Goes to hold from buy. Shares down more than 2% in the premarket.
4.BXP upgraded to buy from hold at Jefferies, which says that while headlines for broader office sentiment will remain negative, public sentiment for REITs will improve. This is one of the few winners in the space and I would not sell it. I also think the damage to the REITs in commercial real estate proved to be way overblown.
5. Goldman Sachs takes Parker-Hannifin to conviction buy from buy, exactly as you should do after a tightening cycle ends. This is what you want … same with Textron, which also gets upgraded to conviction buy. Meanwhile, Goldman downgrades Boeing to buy from conviction buy. I say too soon to downgrade but it does stay on buy list.
6.Bath & Body Works downgraded to buy from conviction buy at Goldman. Director’s cut.These retailers have made major moves already.
7.Expedia upgraded to hold from sell at Wells Fargo. This should never have been a sell. It is doing too well. So is Booking Holdings, to hold from sell at Wells. The two best.
8. Barclays raises price target on Bank of America to $43 from $39, citing net interest income troughs amid stabilizing deposit trends and loan growth. Also raised on Citi, JPMorgan, Morgan Stanley, Goldman Sachs and all the others. Seems a little gratuitous, but they all do trade together. Huntington Bancshares sell to hold — I really like this one. We like Morgan Stanley (to $116 from $102) and Wells Fargo (to $66 from $54 ). I would be sellers at those new targets, but you are supposed to buy these when the Federal Reserve stops tightening. Wells says Citi stock price will double over the next three years.
9. Deutsche Bank notches up price targets on Clorox and Colgate-Palmolive — decent risk reward. I think these are the wrong stocks to own at this point in the cycle.
10. Stifel takes up Advanced Micro Devices to $170 from $145. Likes semis with “ideal mix” of already having seen a correction, strong balance sheet and ties to secular trends like AI.
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.)
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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.
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