What Cramer is watching Tuesday — measuring the impact of China's lockdowns

Published Tue, Apr 12 20229:34 AM EDT

What I am looking at April 12, 2022 Taiwan iPhone maker Pegatron suspends production at its Shanghai and Kunshan plants in China because of the government's Covid-19 lockdowns. But Citi analyst Jim Suva says not to worry because Apple (AAPL) "tends to overshoot on build estimates to ensure sufficient supply." Club holding Qualcomm (QCOM) is insulated from China in near term. Non-handset momentum all over the place ... good defense ... strong 5G. Consumer prices rose 8.5% in March , slightly hotter than expected and the highest since 1981. Global PC shipments declined sharply in the first quarter, suggesting the pandemic boom in PC sales is over . That included a steep drop for HP (HPQ), the company Warren Buffett's Berkshire Hathaway just took a big stake in. HP has now lost market share in six of seven quarters. Semiconductor weakness directly related to PC slowdown, yet many chipmakers — including Trust holdings Qualcomm and Marvel Technology (MRVL) — have no PC exposure. People assume gaming slowdown so they cut Advanced Micro Devices (AMD) and Nvidia (NVDA). Bank of America says weakness is overdone, headwinds flagged. B. Riley downgrades Skyworks (SWKS) to hold from a buy, lowers price target to $138 from $175. Wireless semi group is getting pummeled … When will it end? AT & T (T) and Warner Bros. Discovery (WBD) did well yesterday. Today Citi takes AT & T down to $22 from $28 to reflect the spin-off. The market was ready. Raymond James lowers price target to $26 from $32. Citi's Suva downgrades Cisco (CSCO) to sell from hold, cites multiple compression. We own Cisco for the Trust and didn't see this downgrade coming ... Suva also sees Arista (ANET) gaining share against Cisco. Goldman Sachs ups Crowdstrike (CRWD) to buy from neutral, raises price target to $285 from $241. Ukraine war "stokes an already-elevated demand." Chipotle (CMG) initiated with a buy at Citi. Best-in-class growth leader with $1,900 price target. Cracker Barrel (CBRL) started with a sell at Citi. Company hasn't been able to draw in young people. Denny's (DENN) is a neutral, same with Domino's (DPZ), Brinker (EAT), McDonald's (MCD) and Krispy Kreme (DNUT). Darden Restaurants (DRI) started with buy ... we think GARP (growth at a reasonable price) here. Citi takes Burger King parent Restaurant Brands (QSR) to hold from buy. Mizuho downgrades Coinbase (COIN) to hold from buy. Two price target bumps for Chubb (CB): Wells Fargo and Barclays. Morgan Stanley maintains its buy rating on Microsoft (MSFT) with a price target of $372. Zebra (ZBRA) price target lowered to $400 from $470, cites supply issues. CarMax (KMX) not so hot: The auto retailer's shares fell more than 2% in premarket trading after a bottom-line miss for its latest quarter. HP Enterprise (HPE) downgraded by Morgan Stanley to sell ahead of expected underperformance. Morgan Stanley also lowered F5 Networks (FFIV) and NetApp (NTAP) from buy to hold. Barclays lowers price target for Rocket Companies (RKT), says first half of 2022 to be "one of the more challenging environments in recent memory for the originators." Lululemon (LULU) upside to consensus estimates, say Cowen. Analyst day is April 20. Cowen lowers price target for Walgreens Boots (WBA) to $50 from $55. Kohl's (KSS) — Franchise Group (FRG) tells Kohl's it's willing to pay $69 per share, Reuters reports. Morgan Stanley — Procter & Gamble (PG) is well-positioned over short term. Morgan Stanley likes Mckesson (MCK) and Cardinal Health (CAH), but not AmerisourceBergen (ABC) Barclays has bunch of price target upgrades, including Merck (MRK). (Jim Cramer's Charitable Trust is long AAPL, AMD, CSCO, NVDA, QCOM, . 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.

Shanghai and other parts of China remained in lockdown or subject to travel restrictions during a long holiday weekend in early April, sending an official count of tourism revenue plunging to just over a third of what it was prior to the pandemic.

Hector Retamal | Afp | Getty Images

What I am looking at April 12, 2022

Taiwan iPhone maker Pegatron suspends production at its Shanghai and Kunshan plants in China because of the government's Covid-19 lockdowns. But Citi analyst Jim Suva says not to worry because Apple (AAPL) "tends to overshoot on build estimates to ensure sufficient supply."
Club holding Qualcomm (QCOM) is insulated from China in near term. Non-handset momentum all over the place ... good defense ... strong 5G.
Consumer prices rose 8.5% in March, slightly hotter than expected and the highest since 1981.
Global PC shipments declined sharply in the first quarter, suggesting the pandemic boom in PC sales is over. That included a steep drop for HP (HPQ), the company Warren Buffett's Berkshire Hathaway just took a big stake in. HP has now lost market share in six of seven quarters.