What the Club is watching Friday — Rivian backs EV goal, Six Flags and Lennar downgraded

Published Fri, Aug 12 20229:18 AM EDT

What we are looking at Aug. 12, 2022 This week's pattern extended to Friday with oil down and stock futures pointing to a higher open. The S & P 500 is on pace for its fourth weekly gain in a row. Rivian Automotive (RIVN) backs its full-year production target of 25,000 with growth in reservations to 98,000 from 90,000, but increased its loss estimate for 2022. Morgan Stanley says the electric vehicle maker has enough liquidity to last through most, if not all, of fiscal year 2023. Mizuho lowered price target on RIVN shares to $65 from $70. Illumina (ILMN) slid nearly 15% in premarket trading after reporting misses on the top and bottom lines and provided a weak outlook. The gene-sequencing company cites tough economy and customers delaying lab expansions because of supply chain issues. Six Flags (SIX) downgraded at KeyBanc following yesterday's ugly earnings report, calling the results "indefensible." Not all theme parks have the profitability of Disney's parks and not all streaming services have the growth of Disney+. Snacks company Utz Brands (UTZ) downgraded to neutral by Goldman. The stock is up 45% since adding the company to its buy list on June 16, and analyst doesn't see enough upside to buy more. Homebuilder Lennar (LEN) downgraded to hold from buy by Wedbush. The analyst doesn't see a new catalyst to raise Lennar's price target, currently $88. Bank of America swaps out Broadcom (AVGO) for GlobalFoundries (GFS) on its "US 1" list, which is a collection of firm's best investment ideas. Guggenheim starts coverage on software with cautionary bias. Likes CrowdStrike (CRWD), Oracle (ORCL), Palo Alto (PANW), Splunk (SPLK) among others. Neutral on Microsoft (MSFT). Puts sells on Snowflake (SNOW), Workday (WDAY), Okta (OKTA), and even Salesforce (CRM). JPMorgan says the $44 billion lost in combined market cap between Glaxo, Sanofi (SNY), Haleon, and Pfizer (PFE) "likely exceeds even a worst case scenario" of the potential liabilities related to Zantac litigation. Read our piece on how it might impact Club holding Johnson & Johnson (JNJ). (Jim Cramer's Charitable Trust is long CRM, DIS, JNJ, SNOW. 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.

New Amazon EV vans powered by Rivian are parked at charging stations at the Amazon Logistics Facility in Chicago. Amazon and Rivian unveil their final custom Electric Delivery Vehicles (EDV) to begin using them for customer deliveries, in Chicago, Illinois, July 21, 2022.

Jim Vondruska | Reuters

What we are looking at Aug. 12, 2022

This week's pattern extended to Friday with oil down and stock futures pointing to a higher open. The S&P 500 is on pace for its fourth weekly gain in a row.
Rivian Automotive (RIVN) backs its full-year production target of 25,000 with growth in reservations to 98,000 from 90,000, but increased its loss estimate for 2022. Morgan Stanley says the electric vehicle maker has enough liquidity to last through most, if not all, of fiscal year 2023. Mizuho lowered price target on RIVN shares to $65 from $70.