What Cramer is watching Tuesday — No market bottom yet, PepsiCo great quarter, oil still hated

Published Tue, Jul 12 20228:53 AM EDTUpdated Tue, Jul 12 20228:57 AM EDT

What I am looking at July 12, 2022 No bottom until the price targets are cut and the downgrades are made? The PT cuts are endless, but they are all too far from where stocks are actually trading. KeyBanc lowers Club holding Apple (AAPL) price target to $173 per share from $191; sees Apple hardware below consensus but keeps a buy rating. When this is changed to a sell, we have a bottom but perhaps not before then? KeyBanc cuts price target on Club holding Advanced Micro Devices (AMD) to $130 per share from $150 but keeps overweight. The PTs are ridiculously optimistic, still. Should have cut to, say, $90. Cowen also goes to $120 from $160 on AMD. KeyBanc reduces price target on Club holding Nvidia (NVDA) to $230 per share from $250; Citi goes to $285 from $315, sees 30% peak to trough in gaming. Citi, the stock is trading at $150 for heaven's sakes. PepsiCo (PEP) blow out with great organic growth; traditional beat and raise. The strong dollar drag accounts for 2%, which is much less than we expected. The sales here are extraordinary. Earnings-per-share $1.86 versus $1.74; 36 basis point margin expansion. Get used to this: guidance of 8% EPS growth, would have been 10% if not for the forex headwind. Barclays' price target on Club holding Coterra Energy (CTRA) goes to $37 per share from $41. I continue to believe that no one actually likes oil stocks. We use our energy holdings as an inflation hedge. West Texas Intermediate crude on Tuesday down 4.5% to under $100 per barrel. That's still historically high. Energy firm APA Corp. (APA) price target cut to $55 per share from $62 at Barclays, looking for shortfall versus guidance. Rail and transport giant CSX (CSX) price target cut to $39 per share from $41 at Barclays, which keeps a buy. Sees some signs of weakness. JPMorgan downgrades Union Pacific (UNP) and Norfolk Southern (NSC) to neutral. Big call. J.B. Hunt (JBHT), some signs of weakness. Barclays lowers PT to $210 per share from $225, same as other transports. Ahead of quarter, Betsy Graseck of Morgan Stanley is cutting PT on Club holding Wells Fargo (WFC) to $59 per share $66. Keeps overweight but worried about the consumer. Again, unrealistic price target. Wells Fargo reports earnings before the opening bell Friday. Citi puts negative catalyst watches on PNC Financial (PNC) and KeyCorp (KEY) heading into earnings. Amazingly negative. Susquehanna cuts PT on American Airlines (AAL) to $15 per share from $19. But it upgrades Southwest (LUV) to positive from neutral, sees 23% upside with $45 price target. Susquehanna: Alaska Air (ALK) to $50 from $68; United (UAL) to $43 from $60. Club holding Walmart (WMT) to buy at least 4,500 of Canoo's (GOEV) electric delivery vans. Shares of Canoo surged more than 70% in the premarket on the announcement. Barclays cuts PT on Gap (GPS) to $6 per share from $7 on the struggling mall, operating margins zero to slightly negative. CEO Sonia Syngal out. Continues to have too much inventory. UBS sees Kohl's (KSS) share loss, reiterates sell. "Along with macro headwinds, [market share loss] will likely lead to earnings misses relative to sell-side estimates." Deutsche Bank cuts PT on Texas Roadhouse (TXRH) to $91 per share from $107. JPMorgan sees good capital expenditure growth for Club holding Marvell Technology (MRVL) and another chipmaker, Broadcom (AVGO). Peloton (PTON) layoffs and manufacturing outsourced. CEO Barry McCarthy wants to simplify supply chain. Netflix (NFLX) price target cut to $220 per share from $300 at Morgan Stanley. Avoid General Electric (GE) ahead of earnings, says Morgan Stanley, citing supply chain problems. Homebuilder Lennar (LEN) downgraded to hold from buy (neutral from overweight) at JPMorgan, which sees lower order growth. JPMorgan cuts price targets: Deere (DE) to $325 per share from $370 and Caterpillar (CAT) to $205 from $250. (Jim Cramer's Charitable Trust is long AAPL, AMD, NVDA, CTRA, WFC, WMT and MRVL. 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.

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What I am looking at July 12, 2022

No bottom until the price targets are cut and the downgrades are made? The PT cuts are endless, but they are all too far from where stocks are actually trading.