What Cramer is watching Monday — stocks slump, meme stocks unwind, health data firm bid way up

Published Mon, Aug 22 20228:59 AM EDTUpdated Mon, Aug 22 20229:30 AM EDT

What I am looking at Aug. 22, 2022 Why does Wall Street go down as much as Europe when there is no reason for us to do so? Dow futures down more than 300 points, or roughly 1%. S & P 500 futures off about 1.2%. Nasdaq futures down around 1.5%. These moves follow last week's decline in the major stock benchmarks as bonds yields spiked higher. The 10-year Treasury yield was little changed around 2.98% in Monday's trading. The S & P 500's weekly drop broke four straight weeks to the upside. I think three things need to happen to put the Federal Reserve on a slower course to raising interest rates. Another meme-stock fiasco. Last week it was Bed Bath & Beyond (BBBY), down another 14% in Monday's premarket. This week it's AMC Entertainment (AMC), tanking nearly 40% in the premarket to start the news week. Pressuring AMC stock: Cineworld , the owner of Regal Cinemas, may file for bankruptcy. Regal operates 505 theatres in the U.S. By comparison, AMC has 593 theaters in the U.S. Also impacting trading in AMC: the new preferred share dividend aimed at rewarding meme loyalists, who call themselves "apes." The company's "APE units" are set to begin trading Monday. Signify Health (SGFY) many bidders: The Wall Street Journal reports Club holding Amazon (AMZN) is among them. Signify surged more than 35% in the premarket. Separately, JPMorgan still sees Amazon as a best idea. Evercore postulates that it would be "right" for Club name Apple (AAPL) to get NFL's Sunday ticket. Other bidders reportedly include Amazon as well as other Club holdings Alphabet (GOOGL) and Disney (DIS). Club holding Nvidia (NVDA): "They get knocked down, can they get up again?" Bernstein Research analyst Stacy Rasgon put an earnings-per-share floor of $5 for the chipmaker's next year. Gaming sinks. Data center, what is the new normal? Morgan Stanley raises estimates on beer, wine and spirits giant Constellation Brands (STZ), sees clear upside for this Club holding. Barclays upgrades Foot Locker (FL) to hold from sell (equal weight from underweight), increases price target to $38 per share from $24. Analysts there see new CEO Mary Dillon, former head of Ulta Beauty (ULTA), as "uniquely qualified." Baird raises PT to $40 from $32. Vipshop (VIPS) upgraded at Credit Suisse to buy from hold (outperform from neutral). Vipshop describes itself as is an online discount retailer for brands in China. Why can't they resist these miserable Chinese stocks? Why do they have to recommend them? Where does it say that they need to? Don't we have enough losers over here? Citi goes to hold from sell. Cowen downgrades VF Corp (VFC), the company behind Vans, The North Face and Timberland, to hold from buy (market perform from outperform). Morgan Stanley sees dividend hike from Verizon (VZ) but says stay on the sidelines. Analysts there are looking for a 2% boost, saying it would be well-covered. But why and what makes it well-covered versus conceivable growth or debt paydown other than they have done it 16 years in a row. Evercore ISI takes United Parcel Service (UPS) to hold from buy (in line from outperform) because of consumer presence. Analysts there put FedEx (FDX) on their Tactical Underperform list. UPS down more than 2.5% year to date. FDX down more than 10% year to date. Hainan, known as the Hawaii of China, has 767 cases Covid in the resort town. I reiterate that zero-Covid is not possible with a novel virus. The New York Times describes tens of thousands of vacationers are stranded due to a few days into a two-week lockdown. Deere (DE) multiple price target boosts as demand remains very strong, including Credit Suisse, Wells Fargo, Morgan Stanley and Bank of America. Barclays raises price target on cybersecurity provider CrowdStrike (CRWD) to $215 per share from $200. Evercore ISI puts Dell (DELL) on its Tactical Outperform (buy) List ahead of quarterly results, out Thursday, sees potential upside. Wells Fargo raises price target on Dollar General (DG) to $275 per share from $260. There are never any flies on this one. It is incredible. RBC Capital downgrades