What Cramer is watching Friday — China's $5.3 trillion boost, beats by Palo Alto, Deere

Published Fri, May 20 20229:46 AM EDT

What I am looking at May 20, 2022 China plans to pump $5.3 trillion into its economy this year to bolster growth, according to a Bloomberg report. That's roughly one third of the country's $17 trillion economy. Applied Materials (AMAT) price target lowered to $132 from $153 at Piper Sandler after the chipmaker posted quarterly results that missed analyst estimates. Management cut guidance as supply chain issues worsened due to Covid lockdowns in China. Palo Alto Networks (PANW) says that things are the best ever. Billings for the April quarter accelerated to 40% from a year earlier. Security demand remains strong, lots of ransomware. Positive notes from Oppenheimer, Citi, BMO Capital AND Jefferies keeps the cybersecurity company a top large-cap pick. Deere (DE) quarterly results were better than expected. EPS $6.81 versus consensus $6.71, revenue was $13.37 billion vs. $13.2 billion. The heavy equipment maker sees fiscal-year 2022 hitting $7 billion-$7.4 billion ... demand for farm machinery remains high. Nearly 200 million people are threatened with famine. Constellation Energy (CEG) says "next generation" of smaller nuclear power plants could soon be built in this country if the government can get behind this clean energy solution. Lockheed Martin (LMT), Raytheon Technologies (RTX) and AeroVironment (AVAV) orders accelerate because of war in Ukraine. Chinese lockdown threatens all semis. Ollie's Bargain Outlet (OLLI) double-upgraded to a buy at Bank of America. Telsey Advisory downgrades Ross Stores (ROST) to hold from buy, cites execution missteps and China. Very disappointing and really shows you that it is hard to pick retail. Loop Capital and Baird lower price targets. Marvell (MRVL) remains a buy at Oppenheimer, but analyst cuts price target to $90 from $110. The chipmaker reports earnings next week. Foot Locker (FL) reports first-quarter EPS $1.60 vs. consensus $1.55, management calls for FY 2022 revenue at upper end of down 4%-6%. Block (SQ) price target lowered to $117 from $126 at BMO Capital, but maintains buy rating after good meeting with investors. Block reiterated as a top growth pick at JPMorgan. Kohl's (KSS) price lowered to $55 from $67 at Citi, reasonable given how bad the weather was. Sociedad Quimica (SQM) price target raised to $121 from $103 at Citi ... analyst says the chemical company's exposure to lithium spot prices is lifting expectations. Home Depot (HD) PT raised to $348 from $327 at Citi. Wedbush says Apple (AAPL) is a compelling name to own during market downturn. Citi downgrades Vipshop (VIPS) to sell, says second half visibility is low. Barclays lowers all the major cloud players with leftover high PTs going to lower PTs. New top name for Ark Invest's Cathie Wood is Roku , not Tesla (TSLA) Zoom Video (ZM) price slashed to $90 from $150 ... "tricky" setup into Q1 results. VF Corp. (VFC) fourth-quarter results were "better than feared," says BTIG. Baird says buy Sherwin-Williams (SHW) as it is not as cyclical as you think ... sell-off is a buying opportunity. JPMorgan says buy Salesforce (CRM) ... too cheap to ignore. Nvidia (NVDA) price target cut to $250 from $370 at Wells Fargo ... solid data growth, product cycle good. Fyre Festival founder Billy McFarland and "Pharma Bro" Martin Shkreli released early from prison in the same week! (Jim Cramer's Charitable Trust is long AAPL, CRM, MRVL, 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.

Since March, mainland China has struggled to contain its worst Covid outbreak in two years. Notably, the metropolis of Shanghai, pictured here on May 18, only started this week to begin discussing resumption of normal activity — with a goal of mid-June.

Hector Retamal | Afp | Getty Images

What I am looking at May 20, 2022

China plans to pump $5.3 trillion into its economy this year to bolster growth, according to a Bloomberg report. That's roughly one third of the country's $17 trillion economy.
Applied Materials (AMAT) price target lowered to $132 from $153 at Piper Sandler after the chipmaker posted quarterly results that missed analyst estimates. Management cut guidance as supply chain issues worsened due to Covid lockdowns in China.