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Looking forward The January consumer price index (CPI) , which calculates the average change over time in prices that shoppers pay for goods and services, is slated for Tuesday. Economists and investors will use the number to gauge the odds of a soft landing or hard landing for the economy. The producer price index (PPI) for January, which calculates the change in selling prices received by producers of goods and services, is out on Thursday. 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.
Here are Monday's biggest calls on Wall Street: JPMorgan reiterates Apple as overweight JPMorgan said its survey checks show Apple's iPhone Pro lead times are moderating. JPMorgan names Amazon a top idea heading into 2023 JPMorgan said Amazon is the "most diversified mega-cap across revs & profit & has numerous large growth opportunities." Morgan Stanley downgrades Aptiv to equal weight from overweight Morgan Stanley said in its downgrade of the auto tech supplier that it thinks Aptiv will be affected by a slower rollout of electric vehicles. Morgan Stanley downgrades Williams-Sonoma to underweight from equal weight Morgan Stanley said in its downgrade of Williams-Sonoma that "negative revisions are set to begin." JPMorgan downgrades First Solar to neutral from overweight JPMorgan downgraded the solar stock mainly on valuation.
As markets weather volatility, the investment bank recommends options trades with these 4 stocks. In a recent note to clients, Goldman Sachs breaks down this options trading strategy that the investment bank says has an 18-year track record of adding extra income to investors' pockets. Goldman Sachs Global Investment Research"These strategies have become increasingly popular among investors, especially given the prospects of flat to negative equity markets. For short-term overwriting options trades, the note focuses on three factors when choosing an "attractive" stock: events, implied volatility, and market cap of the company. "We have found that overwriting stocks with these characteristics has added over 500 bps over the past 16 years," the note said.
What I am looking at Monday, Nov. 7, 2022 U.S. stock futures bounced after breaking multiweek weekly winning streaks. Club holding Apple (AAPL) issues with Covid restrictions slowing down iPhone production in China is supply not demand. Club holding Coterra Energy (CTRA) upgraded by Wolfe Research to peer perform from underperform (hold from sell). Club holding Wells Fargo (WFC) still cheapest and putting worst behind it. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
The Carvana and Zillow calls aren't resonating because the autos and housing companies have already seen their stocks crushed. At the same time, these once-thriving tech companies that saw an ever-expanding funnel somehow didn't seem to see any of this coming. 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.
Check out the companies making headlines before the bell:DraftKings (DKNG) – DraftKings fell 12.5% in premarket trading despite reporting a smaller-than-expected quarterly loss and revenue that topped Wall Street forecasts. Hershey (HSY) – Hershey rose 1% in the premarket after quarterly results beat estimates and the candy and chocolate maker raised its sales and profit outlook. PayPal (PYPL) – PayPal shares slid 6.9% in the premarket despite better-than-expected quarterly profit and revenue for the payment service operator. Block (SQ) – Block shares surged 14% in premarket action after it reported quarterly revenue and profit that beat Wall Street forecasts. Carvana (CVNA) – Carvana slid 7.4% in premarket trading after the used-car retailer reported worse-than-expected quarterly results.
Analysts at RBC Capital Markets are moving to the sidelines when it comes to Twilio. "We are downgrading Twilio to Sector Perform, following weak guidance and a disappointing Analyst Day, which leaves us unable to defend the long-term story," wrote Rishi Jaluria in a Friday note. Disappointing analyst day Then, RBC found Twilio's analyst day to be additionally disappointing instead of being a positive catalyst. Management pulled its previously stated growth target of 30% or more and is now targeting growth of 15% to 25%. Analysts at Cowen also downgraded Twilio to market perform from outperform and cut their price target to $65 from $100.
Club holding Coterra Energy (CTRA): In Q3, nearly 500% year-on-year revenue growth to $2.52 billion. Cowen downgrades, sees acute pressure from worsening macro; management pulled 30% growth target. Warner Bros Discovery (WBD): $2.5 billion in cash, $50 billion in gross debt. 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.
Here are Friday's biggest calls on Wall Street: Bank of America reiterates Roblox as buy Bank of America said it's standing by shares of the stock heading into earnings next week. JPMorgan downgrades Funko to neutral from overweight JPMorgan downgraded the pop culture toy company, noting it sees too much uncertainty. " Piper Sandler downgrades Atlassian to neutral from overweight Piper said it sees a slowdown in subscription billings for the software developer. " Bank of America reiterates Krispy Kreme as buy Bank of America said "brand health is strong but FX, UK, promos weigh," heading into Krispy Kreme earnings Nov. 15. Jefferies reiterates Topgolf Callaway Brands as buy Jefferies said it sees 200% upside in shares of the golf company. "
Twilio could be in trouble as signs point to less spending from clients, according to Bank of America. The analyst also slashed his price target on the stock to $85 from $175. That adds to challenges expected as increased competition will create add to pricing pressure and revenue forecasts are at risk. That resulted in Funk lowering the company's 2023 revenue estimate to an increase of 25.1% from 30% and to 26.1% from 30% in 2024. Increased competition has also placed additional pressure on Twilio prices, he said.
While missing lowered expectations in the third quarter, Club holding AMD did see a year-over-year revenue growth. Club holding Estee Lauder (EL) beats on fiscal first-quarter earnings and matches on revenue. Club holding Devon Energy (DVN): Very strong quarter . Club holding Humana (HUM) sees membership growth. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
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Bernstein reiterates Tesla as underperform Bernstein said shares of Tesla remain extremely overvalued. Needham reiterates Netflix as hold Needham said the streaming giant could see "negative revenue growth near-term" due to its new ad-based product. Bank of America downgrades Twilio to underperform from buy Bank of America double downgraded the communications tools company due to rising competition. Bank of America reiterates Peloton as buy Bank of America said it's standing by shares of Peloton heading into earnings on Thursday. Bank of America reiterates Carvana as buy Bank of America said in a note on Wednesday that it's standing by shares of Carvana.
The major indexes all posted gains this week despite a Big Tech beatdown, proving the market can rally without its most valuable stocks. Indeed strength in other sectors — only communication services finished down — helped the overall market to shrug off disappointing earnings results from Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN) and Meta Platforms (META). Alphabet's results fell short of the Street's expectations, but still managed to grow revenue 6% annually off a $65 billion base. (Canada's central bank hiked rates less than expected this week, opting for a 50 basis point hike instead of the expected 75.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Deutsche Bank upgrades NFLX to buy with a price target of $350, up from $270, sees more levers to drive growth. Microsoft (MSFT) price target lowered to $282 from $300 at Citi — estimates still too high ... ServiceNow (NOW) — expect disappointment according Citi analyst's "cautious" conversations with partners … lowered price target to $488 from $575. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a 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.
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