What Cramer is watching Tuesday — Fed fears rising, new dividend yields at Devon and Coterra

Published Tue, May 3 20229:21 AM EDT

What I am looking at May 3, 2022 Fed worries: 10-year Treasury touches 3% on Monday, the 3-year gets almost 3%, which is a competitive piece of paper and presumes four rate hikes of 50 basis points. The Federal Open Market Committee starts its two-day policy meeting on Tuesday, with a statement on its decision on interest rates slated for release at 2 p.m. EST on Wednesday. Fed chairman Jerome Powell speaks at 2:30 p.m. that afternoon. Devon Energy (DVN) new yield is 8.1%. Fantastic Club name reported Monday . Coterra (CTRA) sends 70% to shareholders. New dividend yield is 8.3%. Big gain in nat gas. Clorox (CLX) posts a good quarter, but no way to pass on the raw costs. Just seems a step behind. DocuSign (DOCU) downgraded to underperform from neutral at Wedbush. Nvidia (NVDA) is too expensive so equal weighting at Morgan Stanley, notes gaming slowdown. Both ON Semiconductor (ON) and NXP Semiconductors (NXPI) had great auto numbers, but the auto stocks act as if they are going into a recession — maybe a serious one. A Barry Sternlicht SPAC called Cano Health (CANO) is rated a buy at Bank of America. Primary care for underserved. This stock is almost cut in half and we don't have many SPACs getting research. It is a disaster as a stock and is expected to lose money next year and make a few pennies next year. Five9 (FIVN) wins $44 million contract for contact center and will be adjusted EBITDA positive this year. People want growth at a reasonable price. Don't forget to tune in to our live Monthly Meeting this Thursday at 12:30 p.m. EST , where Jim Cramer will discuss this earnings season and navigating an uncertain market. Expedia (EXPE) with a good quarter and its Vrbo is doing very well. Vrbo is the competitor to Airbnb (ABNB) which we have on Mad Money tonight. All price targets lowered. We also have Logitech (LOGI) on tonight, which had to cut its numbers because of uncertainty and the ongoing war in Ukraine. AeroVironment (AVAV) is ready to handle thousands of orders from the U.S. government for its tank-destroying Switchblade 600. We've only sent 700 to Ukraine so far. Russia has 12,800 tanks. Are we afraid of nuclear war? Ukraine could destroy every tank with Switchblade. I have operated one so they can, too. President Joe Biden is focused on the Javelin from Lockheed Martin (LMT) and has sent 5,000 to 5,500. Not enough... Freshpet (FRPT) offers $350 million in common stock after failing to beat numbers. Papa John's (PZZA) price target lowered to $125 from $155 at BTIG. Brans is not immune to driver shortage. Estee Lauder (EL) beat on earnings and then cut full-year guidance. Adjusted earnings per share of $1.90 versus consensus $1.67. BUT: earnings per share for year now cut to $7.05-$7.15, from $7.44-$7.58. DuPont (DD) organic sales rose 9%, was looking for 6%. Sales cut for next quarter but keeping full-year outlook. Been selling into water, tech, EV, cellphone. But a couple of Chinese factories are down. BP — dollar up but oil is down. Pfizer (PFE): full-year guidance no real cut, accounting change. To take advantage of rising rates and loan growth, Oppenheimer says to buy JPMorgan (JPM), Morgan Stanley (MS) and SVB Financial (SIVB). Molson Coors (TAP) reports first-quarter earnings of 29 cents versus expected 19 cents. Revenue was $2.21 billion versus $2.13 billion consensus. Biggest quarterly sales growth in ten years. Colgate-Palmolive (CL) downgraded at Atlantic Equities. Guidance revised down, can't manage the cost pressures. Fats, oils, corn, soy, tallow, palm all spiked after Russian invasion. Wells Fargo downgrading Carvana (CVNA) to hold from buy. We said sell it at $305. They priced secondary $80 and it is now $60. (Jim Cramer's Charitable Trust is long CTRA, DVN, NVDA. 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.

U.S. Federal Reserve Board Chairman Jerome Powell speaks during his re-nominations hearing of the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill, in Washington, U.S., January 11, 2022.

Graeme Jennings | Reuters

What I am looking at May 3, 2022

Fed worries: 10-year Treasury touches 3% on Monday, the 3-year gets almost 3%, which is a competitive piece of paper and presumes four rate hikes of 50 basis points.
The Federal Open Market Committee starts its two-day policy meeting on Tuesday, with a statement on its decision on interest rates slated for release at 2 p.m. EST on Wednesday. Fed chairman Jerome Powell speaks at 2:30 p.m. that afternoon.