What Cramer is watching Thursday — Fed hike rally, Musk gets help for Twitter bid

Published Thu, May 5 20229:15 AM EDT

What I am looking at May 5, 2022 Fed 75 — was that really it? Some algorithm set to sell on rate hike of 75 basis points and and buy on hike of 50? Or was it a relief rally? Whatever it is, it's not sustainable. We will talk about it at our Investing Club Monthly Meeting at noon ET today. Unusual recognition of the need to stop inflation. New filing shows Oracle co-founder Larry Ellison is contributing $1 billion to support Elon Musk's $44 billion Twitter (TWTR) takeover. Venture capital firm Sequoia, crypto exchange platform Binance are among cohort of investors. Online marketplace Etsy slower because consumers can now go out, not because of the boycott by Etsy sellers. Huge April for bookings as people are traveling again. Twilio (TWLO) new customer acquisition is excellent — cloud communications company can do well in a recession as people need personalized touch. Confirmed also by Five9 (FIVN)he other night on Mad. Clorox (CLX) all set for another round of price hikes in July. New products, cat litter, and expecting strong Kingsford charcoal numbers — which is very good considering it had been a big outdoor number. Confident that the organic growth is coming back. Lapping very hard comparable numbers, but habits have changed. Ebay blames Eastern Europe (common refrain last night except for Booking Holdings (BKNG), which jumped more than 8% after the bell on big beats). Trading cards is now big thing, but is that what people want here? I don't think so. Cut earnings guidance. Point of view is gloomy. Oil companies looking at variable dividends. Diamondback Energy (FANG) is now the highest, but we have Pioneer Natural Resources (PXD) on Mad Money tonight and that will rival it. The big Permian Basin oilers: Pioneer, Diamondback, Coterra (CTRA), Devon (DVN), EOG Resources (EOG) are really holding back drilling. But Halliburton (HAL) good because of PE ... companies needing cash flow. Qorvo (QRVO) numbers cut by everyone. Not unlike Skyworks (SWKS) out of China ... the China crosshairs manufacturers. Uber price target cuts, but not as bad as Lyft . Easier to get drivers than Lyft. Airbnb (ABNB) price target cut at Susquehanna, but analyst keeps positive rating. Livent (LTHM) price target raised to $34 from $26 at Mizuho — this is all Lithium. Johnson Controls (JCI) missed quarterly badly but was so cheap. HVAC company sees third quarter adjusted EPS 82 cents to 87 cents, vs. consensus 96 cents ... very disappointing. Not like Eaton (ETN), which looks to be the best of the group so far. Shopify (SHOP) on tonight and it misses. Gross merchandise volume (GMV) was $43.2 billion vs. $45.8 billion estimate. It buys Deliverr for $2.1 billion, that's fast shipping. Revenue was $1.2 billion vs. $1.25 billion, up 22%. Two-year-compound rate of 60% ... operating loss down to $98 million vs. consensus $112 million. Wayfair (W) misses. Sales fell almost 14% to $2.99 billion from $3.48 billion a year ago. The company lost $1.96 versus Street looking for $1.52 loss. Cash negative like Carvana (CVNA). Still has gross profit of $803 million. CVS Health (CVS) price target raised to $113 from $110 at Deutsche Bank. Yum! Brands (YUM) posts adjusted earnings per share of $1.05 vs. consensus $1.07. Multiple PT cuts. Brinker (EAT) downgraded to hold from a buy at Evercore ISI. Penn National Gaming (PENN) first-quarter EPS was 29 cents vs. consensus 55 cents. Adjusted EBITDA of $434 million vs. $354 million. MP Materials (MP) price target raise to $45 from $37 at Deutsche Bank ... Doing really well, need precious metals … (Jim Cramer's Charitable Trust is long CTRA, DVN, HAL. 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 Chairman Jerome Powell testifies during the Senate Banking Committee hearing titled "The Semiannual Monetary Policy Report to the Congress", in Washington, U.S., March 3, 2022.

Tom Williams | Reuters

What I am looking at May 5, 2022

Fed 75 — was that really it? Some algorithm set to sell on rate hike of 75 basis points and and buy on hike of 50? Or was it a relief rally? Whatever it is, it's not sustainable. We will talk about it at our Investing Club Monthly Meeting at noon ET today. Unusual recognition of the need to stop inflation.
New filing shows Oracle co-founder Larry Ellison is contributing $1 billion to support Elon Musk's $44 billion Twitter (TWTR) takeover. Venture capital firm Sequoia, crypto exchange platform Binance are among cohort of investors.