My top 10 things to watch Wednesday, Dec. 7, 2022. 1. Does China’s Covid reopening mean nothing? U.S. stock futures and oil prices go down anyway? This is so not in the playbook. I’ll discuss this morning and later on CNBC’s “Halftime Report.” Big back-to-back losses Monday and Tuesday for the S & P 500, which is now on a four-session losing streak. We put out a commentary late Tuesday on where we stand. 2. Two out of the Club’s three stocks tied closely to China — Starbucks (SBUX) and Wynn Resorts (WYNN) — are down. Only Estee Lauder (EL) is higher in the premarket as China no longer requires a negative Covid test to go to other parts of the country. South China Morning Post and Nikkei confirm that Hainan is open for business. Gigantic amount of business. High margin. 3. Barclays piles on and cuts every price target for oil companies. When they were running, these were loved. Now they are hated at the bottom end of the range as U.S crude prices dip under $75 per barrel. How much lower, $65? Club name Coterra Energy (CTRA) also downgraded to sell from neutral at Citi. Ridiculous. Enough already, are you selling oil and natural gas near low? 4. Morgan Stanley is taking an “incrementally more conservative” of Apple (AAPL). Reducing near-term iPhone forecasts following news of a slower production ramp at the Foxconn assembly plant in Zhengzhou, China. Keeps $175-per-share price target on Apple and overweight (buy) rating. Morgan Stanley cuts estimates on Dec. 1 iPhone shipments by another three million to 75.5 million units. 5. RBC Capital raises price target on Nike (NKE) to $120 per share from $115; keeps outperform (buy) rating. This is China reopening and everyone has suddenly decided to take profits on anything like this. They have all run too much. Suspects can deliver low double-digit percentage revenue growth. 6. Bernstein says additional price cuts on Tesla (TSLA) vehicles might have to happen next year. Steady drumbeat of negativity around this one because of China just when it opens? Consensus estimates at risk. Analyst Toni Sacconaghi says Tesla “increasingly appears to have a demand issue.” 7. Shares of Carvana (CVNA) are getting crushed; down more than 20% in the premarket to just over $5 per share. Wedbush says bankruptcy risk rising; cooperation agreement about 70% of unsecured debt; BlackRock (BLK), Ares Management and Knighthead Capital Management all on board. Shockingly, Carvana’s all-time high was nearly $377 per share in August 2021. 8. Wolfe with a real negative piece out on Shopify (SHOP), goes to peer perform from outperform (hold from buy). E-ecommerce tailwinds are over. Judging by the way United Parcel Service (UPS) and FedEx (FDX) are acting it’s going to be a miserable online shopping Christmas. What about Club holding Amazon (AMZN)? 9. Wolfe takes its rating on Booking Holdings (BKNG) to peer perform from outperform (hold from buy); sees travel industry at large the same way. Sorry, this sounds like peak everything as the comparisons get hard. Less efficient customer acquisition methods will make numbers hard to reach. 10. If you blinked you missed MongoDB (MDB). One day wonder on coding ability improvement like so many others, but it has pivoted to profitability rather easily. Shares up 26% in Wednesday’s premarket. Surprising adjusted quarterly profit and guidance for another. (Jim Cramer’s Charitable Trust is long SBUX, WYNN, EL, AMZN and AAPL. 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. 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.
My top 10 things to watch Wednesday, Dec. 7, 2022.
1. Does China’s Covid reopening mean nothing? U.S. stock futures and oil prices go down anyway? This is so not in the playbook. I’ll discuss this morning and later on CNBC’s “Halftime Report.” Big back-to-back losses Monday and Tuesday for the S&P 500, which is now on a four-session losing streak. We put out a commentary late Tuesday on where we stand.
2. Two out of the Club’s three stocks tied closely to China — StarbucksWynn ResortsEstee Lauder
