What Cramer is watching — big beats for Apple and Amazon, huge miss for Intel

Published Fri, Jul 29 20229:10 AM EDT

What I am looking at July 29, 2022 Apple (AAPL) quarterly earnings were much stronger than anyone thought because of currency hedging: India, Brazil, Indonesia and China. Extraordinary performance and installed base is now gigantic so revenues are still good. Stories: 1.8 billion active users; services $19.6 billion; advertising going higher; sales during China's "618" shopping festival were incredibly strong. Much more financials coming. Will have lifetime value of subscriber because 98% customer satisfaction. Amazon (AMZN) fires 100,000 people. Turns out Amazon is the go-to option for consumers reacting to the closed shelves at brick-and-mortar stores. High-margin areas like advertising and Amazon Web Services (AWS) cloud business are just juggernauts. Will health care be next frontier for subscribers? Company catches actual price target raises from analysts. Shares up more than 12% in the premarket. Club name Chevron (CVX) had a true blowout quarter, posting record profits of $11.62 billion, up from $3.08 billion a year early ... and more to come as its buyback boosted by 50% and prices stabilize at these levels for natural gas. Waste Management (WM): tremendous construction waste, but most important it will have renewable natural gas as 20% of biz in next few years. Pfizer (PFE) CEO Albert Bourla — biggest Covid vaccine yet to come to fight against big spike in the fall. Exxon Mobil (XOM) posted a better-than-expected second quarter. But this time not as big a beat. Carrier (CARR) is the way to play new legislation giving huge subsidies for the correct kind of HVAC. And the company had great quarter anyway ... Nobody bought. Wolfe downgrades Stanley Black & Decker (SWK) from buy to hold after disappointing quarter. The first real housing casualty ... Comcast (CMCSA) downgraded to hold from buy at JPMorgan, cites slow down in connection volumes. Procter & Gamble (PG) should not be down ... it was currency. Best play on on inflation but really hurt by the strong dollar. Dexcom (DXCM) unusual miss, delayed product. Devices have been tough this year Honeywell (HON) beats on the top and bottom lines ... many price target increases on Street. Mastercard (MA) and Visa (V) both had good quarters. Northrop Grumman (NOC) upgraded to buy from hold at Baird. Bausch Health (BHC) downgraded to hold at RBC Capital with a $5 price target because of Xifaxan litigation, bogus assurance by management ... horrendous risk reward. Baird downgrades Intel (INTC) to hold from buy. Big quarterly misses, light guide. Stock down 11% in the premarket. Does Intel CEO Pat Gelsinger think this is the Gordon Moore, Andy Grove, Craig Barrett, manufacturing problems? Sapphire Rapids data center chips to ramp up later than expected. Susquehanna downgrades to sell from neutral. Market share is going to Club holding Advanced Micro Devices (AMD) the winner. Edward Lifesciences (EW): Big quarterly miss, stock down 7% in premarket. Cannacord downgrades its rating on EW to hold from buy, takes price target down to $106 per share from $115. Roku (ROKU): Disaster quarter and blames environment; stock plunges more than 20% in the premarket. Macro headwinds pressure. Player revenue decline of 19%. Susquehanna downgrades to hold from buy and takes its price target down to $70 per share from $200. (Jim Cramer's Charitable Trust is long AAPL, AMD, AMZN, BHC, CVX. 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.

Apple CEO Tim Cook delivers a keynote address during the WWDC22 at Apple Park on June 06, 2022 in Cupertino, California. Apple CEO Tim Cook kicked off the annual WWDC22 developer conference.

Justin Sullivan | Getty Images

What I am looking at July 29, 2022

Apple (AAPL) quarterly earnings were much stronger than anyone thought because of currency hedging: India, Brazil, Indonesia and China. Extraordinary performance and installed base is now gigantic so revenues are still good. Stories: 1.8 billion active users; services $19.6 billion; advertising going higher; sales during China's "618" shopping festival were incredibly strong. Much more financials coming. Will have lifetime value of subscriber because 98% customer satisfaction.