Investing Club: What Cramer is watching Thursday — Fed fallout, Williams-Sonoma fools bears, Lilly's big call

Published Thu, Mar 17 20228:50 AM EDTUpdated Thu, Mar 17 20226:20 PM EDT

What I am looking at March 17, 2022 Fallout from the Fed: Do we want higher rates? No, we want lower prices for things we paid half the price for at this time last year. (The Federal Reserve decided to raise interest rates by 25 basis points Wednesday.) Biggest call of the day: Eli Lilly (LLY) untapped obesity market poses an underappreciated opportunity for Lilly Tirzepatide. Not enough attention ... 10-20% weight loss. Type 2 diabetes. Lilly hosting call today with Director of National Center for Weight and Wellness at noon. Data expected second quarter. Williams-Sonoma (WSM) — the bears were wrong. Huge buyback and dividend boost. Price target raised to $220 from $202 at RBC Capital. CEO Laura Alber joins me on Mad Money tonight. Lennar (LEN) — the bears were wrong. Still much more profitable than it used to be. Ralph Lauren (RL) goes to buy from hold at JPMorgan. Great balance sheet with $1.4 billion net cash ... metaverse exposure Needham starts Revolve Group (RVLV) with a buy. A real online mall for women's clothes. A profitable company. Alcoa (AA): Citi raises price target to $74 from $60. Can it be squelched? Scotts Miracle-Gro (SMG) price target cut to $160 from $170 at Wells Fargo. Not fully de-risked yet. RBC Capital upgrades CSX Corp to buy from hold, says shares are too cheap relative to peers. Analyst downgrades Union Pacific (UNP) to hold from buy, says valuation too high on our fave ... Relative outperformance over? Tilray Brands (TLRY) price target lowered to $6 from $8 at Piper Sandler, cites company having to cut prices on many offerings to better compete with smaller rivals. Maintains hold rating. PagerDuty (PD) better-than-expected fourth-quarter results, strong first-quarter guidance. AeroVironment (AVAV) price target raised to $95 from $72 at Baird. Nike (NKE) price target lowered to $165 from $175 at Wells Fargo. The Street wants this to work so much because if it does they all win. Citi still loves Jabil (JBL), remains a top pick with a $90 price target ... this says customer Apple (AAPL) is good. One of the rare PT increases: Williams (WMB) to $35 from $33 at Mizuho ... cites Haynesville presence. UBS slashes price target on DraftKings (DKNG) to $18 from $44 ... "more subdued" profit outlook for 2024. McDonald's (MCD) price target lowered to $287 from $294 at Morgan Stanley, cites profit loss from Russia and Ukraine. Ventas (VTR) price target raised to $61.5 from $56.50 at Morgan Stanley. Netflix (NFLX) looks to limit account sharing, will charge extra fee for password share. Zscaler (ZS) price target lowered to $300 from $415 at Baird. Keeps outperform rating. Starbucks (SBUX) — Morgan Stanley says abruptness of CEO Kevin Johnson's retirement announcement Wednesday was a surprise. Dollar General (DG) raises quarterly dividend 31% to 55 cents per share. Sees same-store comp sales up 2.5% this year versus 2021 ... Next year, big year. Bank of America (BAC): Number one pick for banks at Wells Fargo. Analyst Mike Mayo says best rate benefit from Fed move. Signet Jewelers (SIG) — great numbers. CEO Gina Drosos on Mad tonight ... no more Russian minerals. (Jim Cramer's Charitable Trust is long AAPL, LLY. See here for a full list of the stocks.) 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.

Federal Reserve Chairman Jerome Powell testifies during the House Financial Services Committee hearing titled Monetary Policy and the State of the Economy, in Rayburn Building on Wednesday, March 2, 2022.

Tom Williams | CQ-roll Call, Inc. | Getty Images

What I am looking at March 17, 2022

Fallout from the Fed: Do we want higher rates? No, we want lower prices for things we paid half the price for at this time last year. (The Federal Reserve decided to raise interest rates by 25 basis points Wednesday.)