What Cramer is watching Monday — Ford is selling some Rivian, oil refiners should get earnings boost

Published Mon, May 9 20229:30 AM EDT

What I am looking at May 9, 2022 Dow futures down more than 500 points this morning. Which is it: Russia-Ukraine war and Putin's Victory Day, supply chain challenges, Chinese Covid-19 lockdowns, consumer price index, or the Federal Reserve? Oil refiners likely to have massive earnings because the crack spread — difference between a barrel of crude oil and the products refined from it — going back to 2007 has never this high. The average spread is around 18 and is now 55. Global refining sector is having trouble keeping up with rising demand for gasoline jet fuel and diesel. Russian cutbacks in Europe and capacity is actually shrinking unlike 2011 to 2012. Virgin Galactic (SPCE) downgraded to hold from buy at Truist … Pathetic, really pathetic how much was lost in this one. The company announced last week that it was pushing its next commercial flight to space to the first quarter of next year. Dish (DISH) — Credit Suisse upgrades to buy, Deutsche Bank keeps it a buy but cuts price target. Novartis (NVS) downgraded to hold at Wolfe Research. No catalyst so multiple compression. Lucid Group (LCID) lowered to $36 from $45 at Citi. Giant offering today will be the tale of the tape. Ford Motor (F) is selling 8 million of its Rivian Automotive (RIVN) shares as the insider lockup for the stock expires on Sunday, sources told CNBC's David Faber. Ford will use proceeds for lithium, nickel deals and battery JVs. (Remember: General Motors (GM) is getting actual rare earth magnets from MP Materials (MP). Bunch of PT raises for Cigna (CI) … That managed healthcare group is really undervalued. MoffettNathanson hits DraftKings (DKNG) pretty hard. Anti-long-term narrative stocks, plus difficulty of state by state. I guess it was the ultimate "financial" of the stay in place. Equal to Robinhood (HOOD). Twilio (TWLO) price target lowered to $200 from $300 at Mizuho ... Multiple for Software-as-a-service sector is really shrinking. Deutsche Bank lowers price target for Starbucks (SBUX) to $103 from $116, but reiterates its buy rating. Still uncertain but might be worth buying for the turn. I think CEO Howard Schultz can fix it. When will Russians extend embargo to natural gas? German recession? Taiwan's air force scrambled to warn away 18 Chinese aircraft that entered its air defense zone, Reuters reported. Here we go with European debt crisis. Again Italy, with public debt 151% of GDP. It was 120% in 2011. Chinese exports rose 3.7%, down sharply from March's 15.7% growth. Kentucky Derby: 80-1 long shot Rich Strike wins in incredible victory. Charges for Mastercard (MA), Visa (V) at 3.5% ... any decline coming? NortonLifeLock (NLOK) price target lowered to $28 from $31 at Baird. Fluor (FLTR) raised to $31 from $29 at Citi ... first-quarter estimates in line with estimates. Palantir (PLTR) lost $101 million. Revenue growth of 16% from U.S. government was down. Uber Technologies (UBER) CEO Dara Khosrowshahi told employees company will slash spending and treat hiring as a "privilege." Shopify (SHOP) will add more people? Bitcoin drops below $33,000 to hit its lowest level since July 2021. Anyone who bought since then is down. (Jim Cramer's Charitable Trust is long F. 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.

Ford Motor Co. signage at the Washington Auto Show in Washington, D.C., Jan. 21, 2022.

Al Drago | Bloomberg | Getty Images

What I am looking at May 9, 2022

Dow futures down more than 500 points this morning. Which is it: Russia-Ukraine war and Putin's Victory Day, supply chain challenges, Chinese Covid-19 lockdowns, consumer price index, or the Federal Reserve?
Oil refiners likely to have massive earnings because the crack spread — difference between a barrel of crude oil and the products refined from it — going back to 2007 has never this high. The average spread is around 18 and is now 55. Global refining sector is having trouble keeping up with rising demand for gasoline jet fuel and diesel. Russian cutbacks in Europe and capacity is actually shrinking unlike 2011 to 2012.