CNBC Investing Club

Investing Club: What Cramer is watching Wednesday — Fed's big meeting, bullish talk from Bausch, Boeing is 'fresh'

Federal Reserve Chair Jerome Powell testifies before a Senate Banking Committee hearing on the CARES Act Oversight at the Senate Office Building on Tuesday, Nov. 30, 2021 in Washington, DC.
Kent Nishimura | Los Angeles Times | Getty Images

What I am looking at March 16, 2022

  • Federal Reserve meeting today ... interest-rate hike of 25 basis points expected ... did market steal upside already with this move? Most likely. Still no break in inflation in any commodity other than the topping out of oil for now.
  • Will multiple contraction run its course with Fed tightening? The stocks of companies that are selling at a multiple of sales that do not have positive cash flow will get some lift. But they have to be sold because many need money and there is none to be had in this market for this kind of stock.
  • Second day rally led by China and the decision to move stocks up because it was such a hard decline. Anyone who is doing anything but trading these stocks is crazy as the PRC is operating with a command market that is totally at the whim of President Xi.
  • John Ellis in News Items (on Substack) presents the nightmare scenario of tactical nukes that can be launched with pinpoint precision by Russian leader Vladimir Putin.
  • Micron (MU) upgraded to buy from sell at Bernstein. Bellwether even as it is largely commodity …Based on DRAM cycle bottoming in next two quarters. Wishful call but well timed. China hasn't made gains even as they have copied Micron.
  • Bausch Health (BHC) gives bullish talk at Barclays Global Healthcare Conference. While no one cares it was incredible how much momentum this company has — especially Bausch products including cataract essentials that have been stalled because of Covid-19.
  • American Express (AXP) analyst meeting today ... should be upbeat as consumers are spending like crazy.
  • Nike (NKE) — Citi cautions to stay neutral ... overall macro picture in China biz is mixed. Like so many others the price target is antediluvian at $157. Credit Suisse takes target down to $160 from $176 —all ahead of Monday's print. Keeps buy on it and says it is derisked. Lots of derisked stocks out there ...
  • JPMorgan with half-baked defense of Carvana (CVNA), warning of volatility. You have to watch this company's bonds which are indeed trading lower. I prefer Lithia Motors (LAD). 
  • SentinelOne (S) on Mad Money tonight ... mixed picture ... still fast growing but decelerating on key lines. Price target cut at several research firms, including Piper Sandler, Wells Fargo and BTIG ... the latter cites a reduction in software multiples. Still high degree of confidence it can beat the numbers; Barclays cuts to $37 from $39 but likes acquisition of Attivo.
  • Estee Lauder (EL), a Bullpen stock, has price target slashed to $300 from $350 at Oppenheimer as China lockdowns will slow business even as the stock has already been crushed.
  • Meta's (FB) Mark Zuckerberg working on bringing NFTs to Instagram. Story will be loved by younger investors … Might get another day .. Stock owned by Trust.
  • Citi remains "constructive" on Zscaler (ZS) with buy rating ... shares down 40% this year.
  • MoffettNathanson says Club holding PayPal (PYPL) may have been ultimate fintech blowup of the pandemic ... sees attractive entry point at current levels.
  • Procter & Gamble (PG) price target lowered to $173 from $179 at Deutsche Bank after meeting with management ... keeps a buy rating.
  • Google (GOOGL) will raise cloud prices, which is incredible. Hike suggests industry behavior remains rational. More choice. This is a huge call because AWS is always lowering price.
  • Baird loves Club name Boeing (BA) ... named Bullish Fresh Pick, reiterates buy and $306 price target.

(Jim Cramer's Charitable Trust is long BA, BHC, FB. See here for a full list of the stocks.)

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