What Cramer is watching Wednesday — recession or Fed winning, and broad fintech cuts

Published Wed, Jul 6 20228:46 AM EDTUpdated Wed, Jul 6 20229:45 AM EDT

What I am looking at July 6, 2022 Was Micron (MU) the first time we saw a stock rally after a forecast cut and was that because it sold at only 5 times earnings? If rates falling are a sign of a recession why is the most sensitive section to recession, the homebuilders, climbing? Or could the decline in rates be a sign that inflation is receding and the Federal Reserve is winning? Piper takes American Express (AXP) price target down to $163 per share from $202, worries an economic slowdown will disrupt discretionary spend and cross border travel even as there's no sign of that happening. PayPal (PYPL), to $93 from $140; Block (SQ) to $84 from $105. Likes AXP more. Same with Visa (V) to $204 from $239. This one will trade with AXP. Mastercard (MA) to $298 from $357. Fintech remains hated? Piper Sandler cuts price target of once high flying Cloudflare (NET) to $57 per share from $83, says internet traffic growing at half its normal rate. Multiple pressures on sub verticals, including media and e-commerce. Fastly (FSLY) goes to $13 per share from $19; Akamai (AKAM) to $102 from $118. RBC Capital downgrades Club name Pioneer Natural Resources (PXD) to hold from buy (sector perform from outperform), says others will catch up even as this has the highest dividend yield in the S & P 500. It is amazing how quickly the fair-weather oil friends turned on this group; same thing with EOG Resources (EOG), best of the best. You must realize these have the best properties and the best yields. Abbott (ABT) started with a sell (underperform) and a $95 per-share price target by Wolfe, says valuation just doesn't make sense; same thing with Medtronic (MDT) with $85 price target, which they say is a value trap. Atlantic goes to hold from buy on Coinbase (COIN) price target, which rallied 10% percent Tuesday. The Voyager network collapsed Tuesday night. Voyager had a $485 million credit line from Sam Bankman-Fried's Alameda Research unit. They say they can't get good talent. No kidding giving the pulling of job offers. Bitcoin trying to hold $20,000. That's the level big crypto bulls are trying to prop up, to bring in more players. Beijing orders a Covid vaccine mandate for the first time. HCA Healthcare (HCA) downgraded at BMO Capital to sell from hold (underperform from market perform), cuts price target to $160 per share from $233. Barclays trims price target on PepsiCo (PEP) to $183 per share from $187, but on the high end of Wall Street estimates on second-quarter. JPMorgan says risk-reward good going into quarterly results out July 12, cuts price target to $185 from $186. What's the point of these mini price-target moves? Netflix (NFLX) price target at Barclays slashed to $170 per share from $275, says might lose 2.8 million subs more than the company thought. The stock closed Tuesday at nearly $186. Club name Amazon (AMZN) takes stake in Grubhub and goes against DoorDash (DASH), which sank 7% in the premarket after closing Tuesday more than 10% higher. Wells Fargo upgrades mortgage fintech Rocket Companies (RKT), says others pain may be Rocket's gain. However, near-term earnings will likely be rough; raising price target to $10 per share from $6.50. The Paper Excellence Group agrees to buy Resolute Forest Products (RFP) for $1.6 billion in cash. RFP shares soar 66% in the premarket. Morgan Stanley cuts Cleveland-Cliffs (CLF) price target to $16 per share from $24; Nucor (NUE) to $121 from $144 – sees steel prices falling faster than thought; U.S. Steel (X) to $20 from $27. Morgan Stanley on cybersecurity — safe haven Palo Alto Networks (PANW), CrowdStrike (CRWD). Early innings in firewall refresh, sees CRWD limited signs of slowdown; controversial Okta (OKTA), Zscaler (ZS) not good. Nike (NKE) — bull bear debate at Bank of America. No real answer. BofA sees Exxon (XOM) setting a new record in free cash flow. XOM top major. Goldman Sacks on digital ads, likes Meta Platforms (META) and then Alphabet (GOOGL), both Club names. Citi adds Alibaba (BABA)to focus list. A correlation with Chinese comeback? (Jim Cramer's Charitable Trust is long PXD, AMZN, META and GOOGL. 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.

People walk by the New York Stock Exchange on May 12, 2022 in New York City.

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What I am looking at July 6, 2022

Was Micron