What Cramer is watching Tuesday — Home Depot, Walmart beats; McDonald's price target bump

Published Tue, Aug 16 20229:12 AM EDTUpdated Tue, Aug 16 20229:15 AM EDT

What I am looking at Aug. 16, 2022 Home Depot (HD) crushes it: quarterly same-store sales up 5.8 versus 4.9 expected. Adjusted earnings-per-share of $5.05 on $43.79 billion in revenue; both beat and both quarterly records. However, Home Depot only just stands by guidance and the Dow stock was slightly lower in the premarket. Walmart (WMT), also a Dow component, rose roughly 4.5% in the premarket after better-than-expected quarterly profit and revenue. Adjusted earnings of $1.77 per share on $152.86 billion in sales. The retail giant sticks with its second-half guidance. Food sales good – quarter ended stronger. Supply chain issues lower. CFO tells CNBC households with annual incomes of $100,000 or more represented about three quarters of Walmart's market share gains in food. Housing starts in July down 9.6% versus down 2.5% expected. Annual rate 1.45 million units versus 1.52 million expected. Lightest number going back to June. Stocks lower. Bond yields higher. Club holding Cisco Systems (CSCO) preview from Goldman Sachs: expect at least a 10% year-over-year decline in fiscal fourth-quarter orders. Full-year guidance in focus. Cisco reports after the closing bell Wednesday. UBS field checks indicate possible soft tone for Snowflake (SNOW) this quarter. The cloud data provider is set to report Aug. 24. UBS downgrades SNOW to neutral from buy. However, it raises price-target to $175 per share from $165. Despite obvious slowdown issues, Truist incrementally positive on Etsy (ETSY) after company visit, raises price target to $130 per share from $115. Meme-stock Bed Bath & Beyond (BBBY) has 47% short position, fuel to the flame. B. Riley goes to sell from hold, stands by $5-per-share price target. The stock fell 2% in the premarket after soaring 23.6% to $16 per share on Monday. Company needs cash to get out of leases, take control of its own destiny, and get credit. Why not a giant equity offering? BMO Capital raises price target on McDonald's (MCD) to $300 per share from $285. Is this the new loved stock for this market? This, and Mckesson (MCK)? Autozone (AZO)? PepsiCo (PEP)? Citi sees growth drivers on mute at Zoom Video (ZM), downgrades the stock to sell from neutral, cuts price target to $91 per share from $99. Morgan Stanley lowers price target on Club holding Salesforce (CRM) to $273 per share from $291, cites foreign exchange headwinds. JPMorgan takes Elanco Animal Health (ELAN) to neutral from overweight (buy), sees better prospects elsewhere and calls Zoetis (ZTS) top idea. (Jim Cramer's Charitable Trust is long CRM. 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.

A Home Depot store in Livermore, California, US, on Thursday, May 12, 2022. Home Depot Inc. is scheduled to release earnings figures on May 17. Photographer:

David Paul Morris | Bloomberg | Getty Images

What I am looking at Aug. 16, 2022

Home Depot (HD) crushes it: quarterly same-store sales up 5.8 versus 4.9 expected. Adjusted earnings-per-share of $5.05 on $43.79 billion in revenue; both beat and both quarterly records. However, Home Depot only just stands by guidance and the Dow stock was slightly lower in the premarket.

Walmart (WMT), also a Dow component, rose roughly 4.5% in the premarket after better-than-expected quarterly profit and revenue. Adjusted earnings of $1.77 per share on $152.86 billion in sales. The retail giant sticks with its second-half guidance. Food sales