Jim Cramer’s top 10 things to watch in the stock market on Wednesday

admin May 31, 2023

11 5 minutes read

Jim Cramer’s top 10 things to watch in the stock market on Wednesday

My top 10 things to watch Wednesday 31 May 1. Last day of the month. The Republican-controlled House vote on the debt ceiling deal was set for Wednesday night, a day after the rules committee was approved. Democratic controlled Senate is coming. Monday standard deadline. 2. Wall Street is set to open lower after the Nasdaq’s third straight session of gains and its highest close since August. Back over 1[ads1]3,000. Driven by the recent buying spree in AI-related stocks such as Club name Nvidia (NVDA), which briefly traded above $1 trillion in market capitalization on Tuesday. Very narrow rally in NVDA and other Club holdings Apple (AAPL) and Amazon (AMZN) as well as Tesla (TSLA). Everyone dives early. 3. Citi says to ‘go long’ Nvidia. Maintains Buy rating and price target of $420 per share. Bank of America raises NVDA price target to $500 from $450. BofA analysts cite product announcements at a data conference in Taiwan over the long weekend. 4. Marvell Technology CEO Matt Murphy says at Mad Money that the chip maker is getting more and more orders every day for the plumbing needed for generative artificial intelligence. Marvell (MRVL), a former Club stock, now in the Bullpen, will have 100% CAGR (compound annual growth rate). Marvell, like Nvidia, has had a good run recently. Both catch their breath. So is our other chip stock Advanced Micro Devices (AMD), which we trimmed on Tuesday. Trimmed Meta Platforms (META). We still like both, but it’s wise to take some extra after big races. 5. Price target increases for Microsoft (MSFT): Credit Suisse to $420 per share from $350 and Piper Sandler to $400 from $348. AI tailwinds can accelerate growth. Both survey stores retain their purchase equivalent rating. 6. Bernstein raises price target on Amazon to $140 from $125. Holds better than (buy) rating. Much of what the analysts call “unexploited potential”. 7. Enrique Lores, CEO of HP (HPQ), calls the bottom in PCs on Mad Money. He says that the second half will be significantly stronger than the first. HP issued a quarterly revenue breakdown. Hewlett Packard Enterprise (HPE) also missed revenue. The shares of both, which are separate listed companies, are down significantly. 8. JPMorgan CEO Jamie Dimon, in China for a conference, tells Bloomberg that the uncertainty there is “somewhat” caused by the Chinese government. Is the government there in trouble? Do we have to trade with them as much? They don’t get the powerful Nvidia H-100 chip to run the AI, mind you. Tesla CEO Elon Musk also visited China and met with government officials there. 9. Manufacturing activity in China slowed in May faster than expected as the post-Covid recovery in the world’s second largest economy continues to falter. Oil prices fall due to fear. So do oil stocks, including Club holdings Coterra Energy (CTRA), Pioneer Natural Resources (PXD) and Halliburton (HAL) 10. Target (TGT) and Kohl’s (KSS) are down. Kohl’s now has a Pride Month problem after backlash over Target’s transgender-friendly swimsuit. Bud Light’s marketing campaign featuring a trans influencer had led to boycotts and increased sales at rival beer makers such as Club name Constellations Brands (STZ). (See here for a complete 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 share in his charitable fund’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 INVESTMENT CLUB INFORMATION ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO OBLIGATION OR OBLIGATION EXISTS OR IS CREATED BY YOUR ACKNOWLEDGMENT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR REWARDS ARE GUARANTEED.

My top 10 things to watch on Wednesday 31 May

1. Last day of the month. The Republican-controlled House vote on the debt ceiling deal was set for Wednesday night, a day after the rules committee was approved. Democratic controlled Senate is coming. Monday standard deadline.

2. Wall Street is set to open lower after Nasdaq‘s third straight session of gains and its highest finish since August. Back over 13,000. Driven by the recent buying spree in AI-related stocks as club names Nvidia (NVDA), which briefly traded above $1 trillion in market capitalization on Tuesday. Very narrow rally in NVDA and other club teams apple (AAPL) and Amazon (AMZN) as well Tesla (TSLA). Everyone dives early.

3. Citi says to ‘stay long’ Nvidia. Maintains Buy rating and price target of $420 per share. Bank of America raises NVDA price target to $500 from $450. BofA analysts cite product announcements at a data conference in Taiwan over the long weekend.

4. Marvell Technology CEO Matt Murphy says at Mad Money that the chipmaker is getting more and more orders every day for the plumbing needed for generative artificial intelligence. Marvel (MRVL), a former Club stock, now in the bullpen, will have a 100% CAGR (compound annual growth rate). Marvell, like Nvidia, has had a good run recently. Both catch their breath. So is our other chip stock Advanced Micro Devices (AMD), which we trimmed on Tuesday. Trimmed Meta platforms (META). We still like both, but it’s wise to take some extra after big races.

5. Course targets increase too Microsoft (MSFT): Credit Suisse to $420 a share from $350 and Piper Sandler to $400 from $348. AI tailwinds can accelerate growth. Both survey stores retain their purchase equivalent rating.

6. Bernstein raises his price target on Amazon to $140 from $125. Holds better than (buy) rating. Much of what the analysts call “unexploited potential”.

7. Enrique Lores, CEO of HP (HPQ), calls the bottom in PCs at Mad Money. He says that the second half will be significantly stronger than the first. HP issued a quarterly revenue breakdown. Hewlett Packard Enterprise (HPE) also missed revenue. The shares of both, which are separate listed companies, are down significantly.

8. JPMorgan CEO Jamie Dimon, in China for a conference, tells Bloomberg that the uncertainty there is “somewhat” caused by the Chinese government. Is the government there in trouble? Do we have to trade with them as much? They don’t get the powerful Nvidia H-100 chip to run the AI, mind you. Tesla CEO Elon Musk also visited China, meeting with government officials there.

9. Manufacturing activity in China slowed faster than expected in May as the post-Covid recovery in the world’s second-largest economy continues to falter. Oil prices fall due to fear. So do oil stocks, including club holdings Coterra energy (CTRA), Pioneer Natural Resources (PXD) and Halliburton (HAL)

10. Goal (TGT) and Kohl’s (KSS) goes down. Kohl’s now has a Pride Month problem after backlash over Target’s transgender-friendly swimsuit. Bud Light’s marketing campaign featuring a trans influencer had led to boycotts and increased sales at rival beer makers such as Club name Constellations Brands (STZ).

(See here (for a complete list of the shares 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 share in his charitable fund’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 INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY, ALONG WITH OUR DISCLAIMER. NO OBLIGATION OR OBLIGATION EXISTS OR IS CREATED BY YOUR ACKNOWLEDGMENT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR REWARDS ARE GUARANTEED.

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