What Cramer is watching Tuesday — Kellogg to split, Biden vs. oil, Qualcomm cut

Published Tue, Jun 21 20229:00 AM EDTUpdated Tue, Jun 21 20229:06 AM EDT

What I am looking at June 21, 2022 Kellogg (K) announced Tuesday that it plans to split into three independent public companies: cereal, plant-based food, and snacks. The North American cereal business and plant-based division together represent 20% of sales, while global snacking — including international cereal, noodles, frozen brands — account for 80%. Names for the new companies to come. Shares jumped 8% in the premarket. Adobe (ADBE) downgraded to hold from a buy at Morgan Stanley. Tech is where the weakness is in this economy when it comes to jobs. Is there any middle ground between oil companies and the Biden administration. U.S. Energy Secretary Jennifer Granholm is expected to meet with refining executives on June 23 as tensions between the White House and the oil industry rise over high gas prices. David Faber's Exxon (XOM) documentary premieres Wednesday at 8 p.m. ET, and will be key to this dialogue. Pullback in oil — buy it: Schlumberger (SLB), Suncor (SU), Pioneer Natural (PXD), ConocoPhillips (COP). Verizon (VZ) price target trimmed to $54 from $58 at Credit Suisse. Competition is getting more fierce. But the company will be raising prices. Qualcomm (QCOM) PT lowered to $168 from $185 at Mizuho, cites weakness in handsets. But this directly contradicts what CEO Cristiano Amon said on Mad Money last Friday. Barclays, here we go again: Union Pacific (UNP) price target cut to $255 from $290. As per my piece last night , as long as we still have too many high price targets, it will be difficult to advance. Stocks do drop almost every time we have a price cut and they are almost all too high. Citi cuts price targets on homebuilders Toll Brothers (TOL), Pulte (PHM) and D.R. Horton (DHI) because of higher mortgage rates and waning consumer confidence. Again hard to advance with higher price targets. Wells Fargo initiates Virgin Galactic (SPCE) with a sell and a $4 price target. The end of the SPACs has been going on forever. Electric vehicle maker NIO has its price target slashed to $41.10 from $87 at Citi. Dave & Buster's (PLAY) price target cut to $36 from $45 at Stifel, cites same-restaurant sales are slowing. This company just reported a better quarter. Western Digital (WDC) price target lowered to $68 from $72 at Mizuho, citing flash and DRAM have weakened considerably. Again, though, analyst keeps it as a buy, which makes no sense whatsoever … claims negativity gives you a good chance to buy. International Paper (IP) and WestRock (WRK) are downgraded to neutral from buy at Citi, cites price erosion. Loop says Wendy's (WEN) quarter-to-date sales are tracking ahead of expectations. Chewy (CHWY): the worst is over, says Wedbush, which upgrades stock to outperform on favorable risk/reward. Nike (NKE) price target lowered to $150 from $165 at Baird after preview of its fourth-quarter results. Centene (CNC) upgraded to buy from hold at Credit Suisse, says questions seem reflected in stock. Charles Schwab (SCHW) is upgraded to a buy at UBS, which calls the brokerage a de-risked quality name that is well insulated from credit and market risk. Valuation below trough. (Jim Cramer's Charitable Trust is long PXD, 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.

Kellogg's cereal products sit on display in a supermarket in New York.

Daniel Acker | Bloomberg | Getty Images

What I am looking at June 21, 2022

Kellogg (K) announced Tuesday that it plans to split into three independent public companies: cereal, plant-based food, and snacks. The North American cereal business and plant-based division together represent 20% of sales, while global snacking — including international cereal, noodles, frozen brands — account for 80%. Names for the new companies to come. Shares jumped 8% in the premarket.
Adobe (ADBE) downgraded to hold from a buy at Morgan Stanley. Tech is where the weakness is in this economy when it comes to jobs.