Investing Club: What Cramer is Watching Friday — are investors too focused on the negatives?

Published Fri, Jan 28 20229:26 AM ESTUpdated Fri, Jan 28 20223:02 PM EST

What I am looking at Jan. 28, 2022 Technicals showing damage. More stocks going down than up in last 10 days versus any other 10-day period in 20 years. Now as oversold as during "lockstep" tightening in 2018 but less to fall back on because of full employment ... TIE goes to the bears ... If Western Digital (WDC) is bad and Seagate (STX) is good we decide things are bad (too focused on negatives and not the positives); growth stock of the day is Atlassian (TEAM). Yesterday it was Qualtrics (XM) and ServiceNow (NOW). The growth hounds won't let these stocks come down … Lots of price target cuts ... BUT NOW EPS cuts. Apple (AAPL) strong on all but the most supplied constrained (iPad) ... Tim Cook spent most of the time talking about installed base of 1.8 billion. Looking at almost 800 million subscribers ... Card on fire. No defaults for bills (almost unheard-of). China abnormally STRONG—highest-ever market share. Beginning to get the value of lifetime sub and notion of delivery system for content … Semi Armageddon Part 2: Apple said supply constraints lessoned over quarter. Does that mean coming chip glut? It shouldn't. Tim told me that it is legacy chip shortage being solved, not cutting edge. But will be misinterpreted by nervous jackals. Apple on inflation — it's everywhere. If Fed Chair Jerome Powell read AAPL's conference call on Thursday it would make him tighten faster ... Advanced Micro Devices (AMD) and Nvidia (NVDA) most hurt by Intel bombing by its CEO Gelsinger. Gains for AMD and NVDA since Lisa Su became AMD CEO in 2014 are awesome ... right now AMD 32 x 2022 earnings (huge decline) ... 26% eps growth rate for 2022 so you have big discount.. Atlassian EPS 50 cents v 39 cents expected ... hard to see why it rallies 10% unless people say it is the next ServiceNow which did stay up all day yesterday. Buyers of NOW used very old-school method: multiple bidders at once willing to overpay to keep stock from being brought down by programs ... RobinHood (HOOD) — Piper cuts price target to $13 from $17. I am pronouncing it not a disaster. However, customers doing fewer and smaller trades. Big crypto crowd. The app is still attracting people but very vulnerable franchise; $15 to $12. Everyone seems to want Kroger (KR) lower—this time Citi takes it to a sell. Inflation obsession. Tractor Supply (TSCO) upgraded to buy from neutral (Citi)—still one of those undiscovered retail plays like Boot Barn (BOOT) and Ulta (ULTA). BOOT is on Mad Money tonight. Niche to national. McCormick (MKC) up only 1% despite showing best momentum in food group by catering to in-home and restaurants/cafeteria. Acquisitions of French's, Franks, Cholula keep paying off. Scoville scale of hotness high. Enphase Energy (ENPH) price target to $255 from $205. Did you know that we let solar panels in from China that are subsidized yet made with coal? President Biden debating on this. Meanwhile remember that Corning (GLW) re-opened solar line ... introducing the Citi concept of the 4-headed monster: 1. Rising interest rates; 2. Value over growth; 3. Scuttling of BBB, 4. Anti-solar NEM 3.0 PD which would cut subsidies to California for generating power. Thought to cut market in half. Generac (GNRC) price target drops to $375 from $475 ... Citi – 4-headed monster ... First Solar (FSLR) cut $80 from $100 ... Chart Industries (GTLS) down to $167 from $198. Is Corning (GLW) best q so far? Project for the weekend. Susquehanna upped GLW to buy from hold. Bank of America starts Five9 (FIVN) with a sell!!! Stryker (SYK) hit with a couple of price cuts. Anything medical device being hit by omicron so I would not read too much into these price target cuts ... just like Edwards after so-called miss. EW best in show. Why is Nucor (NUE) doing better than all the others: this charitable trust recommendation is benefitting by tight supply for all but sheet ... Developing less carbon steel helping outfits like General Motors (GM) make their promise. Rockwell Automation (ROK)—perfunctory price target cuts by Goldman and Citi—I have them on Mad Money tonight. Everyone likes robots. Western Digital (WDC) price cut to $75 from $80 by Citi. Will be used against semis because has big flash exposure. Remember semi pressure is shrinking as part of the S & P tech got to be too big a part of the market. Visa (V) pt lifted to $283 from $275. Piper would have been star of show if not for Apple—same as Mastercard (MA) club name; these are back in charge in fintech. Chevron (CVX) big miss-club name—pretty embarrassing; expanded buyback—1.25 b in q-1 ... Artificially low, time to go back to old way to valuation. Twilio (TWLO) price target lowered by $75 to $250 (Mizuho) ... should never have been up so much, usual multiple shrinkage. Danaher (DHR): Club name beats all numbers and price target STILL lowered to $334 from $340 by Baird. Mizuho on Shopify (SHOP) $1400 to $900 ... neutral rating kept, slowing software as a service; same with Hubspot (HUBS)—$300 to $220; RingCentral (RNG) too. Caterpillar (CAT) pt dropped to $227 from $269 but many moving parts and China numbers bad ... inflation, high labor costs will be an issue; another Fed nightmare stock. Surging demand for bulldozers, trucks, engines, diggers. But usual ongoing supply constraints ... demand outran the costs; headwinds to op profit but will get better. Amazon pt to $4100 from $4000 says Credit Suisse ... what is this about—a neutral zone infraction; Alphabet (GOOGL) to $3450 from $3400—same ... neutral zone infraction. (Jim Cramer's Charitable Trust is long AAPL, AMD, AMZN, DHR, GOOGL, MA, NUE and NVDA. See here for a full list of the stocks.