10 things to watch Wednesday, March 13

  1. U.S. stocks are little changed early Wednesday, one day after a strong rally sent to the S&P 500 to a new record close. Investors get February’s producer price index on Thursday following a slightly hotter-than-expected consumer price index on Tuesday.
  2. Eli Lilly teams up with Amazon’s pharmacy unit to deliver patients drugs like Zepbound through its LillyDirect service. Zepbound for weight loss and Mounjaro for diabetes share the same active ingredient, tirzepatide, and are part of an emerging class of drugs referred to as GLP-1s.
  3. Bank of America increases Nvidia price target to $1,100 per share from $925 as part of its preview of the AI chip powerhouse’s GTC developers conference next week. BofA also raises red-hot server maker Super Micro Computer price target to $1,280 from $1,040.
  4. TikTok ban legislation hits the House floor on Wednesday. The bill, which is expected to pass, would force the social media platform’s Chinese owner ByteDance to sell its U.S. assets or get banned. The prospects in the Senate were still uncertain Tuesday. A ban of TikTok would certainly help Club name Meta Platforms’ Reels short-term video feature.
  5. General Electric is selling another round of GE Healthcare shares. The secondary offering was upsized to 14 million shares from the original offering size of 13 million. Frustratingly, GEHC is down 4%. But we can make the argument that getting through the sales diminishes an overhang. The Club stock took off in mid-February after the previous secondary.
  6. Morgan Stanley’s Adam Jonas upgrades his view on the auto industry to attractive from in-line (buy from hold) on the pivot to capital efficiency and return over aggressive spending on EVs and autonomous vehicles. “Auto demand trends strongly support our ICE elongation thesis,” Jonas wrote, a thesis that plays into the hand of legacy internal combustion engine makers like General Motors and Club name Ford. Morgan Stanley has its buy-equivalent overweight rating on both. Jonas is still overweight Tesla.
  7. Wells Fargo downgrades Tesla to underweight from equal weight (sell from hold) and cuts price target slashed to $125 per share from $200. The analysts’ view: Tesla’s price cuts on electric vehicles are not helping volumes enough.
  8. Citigroup opens a 30-day positive catalyst watch on Constellation Brands. The analysts see easy comparisons in March and potential of further gains in spring shelf space reset as positive catalysts. Citi expects to see an acceleration in beer trends over the next three Nielsen scanner data releases. The Club holding behind Mexican beer brands Corona, Modelo and Pacifico is set to report earnings next month.
  9. Citi upgrades steelmaker Nucor to buy and downgrades industry peer Cleveland-Cliffs to neutral.
  10. Dollar Tree disappoints, missing fourth-quarter earnings per share estimates by 11 cents and provides softer first-quarter guidance. The stock is down 11% following the release.

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.)

What Investing Club members are reading right now

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.



Source link