What Cramer is watching Monday — bond yields up, stocks down again as Wall Street on Fed watch

Published Mon, Sep 19 20228:57 AM EDT

What I am looking at Monday, Sept. 19, 2022 U.S. stock futures are in the red again as bond yields go higher again. The 10-year Treasury yield on Monday jumps to an 11-year high of 3.5%. The 2-year yield , already around late 2007 highs, closes in on 4%, signaling MULTIPLE interest rate hikes after the one expected this week at the Federal Reserve's two-day September meeting, which ends Wednesday. I wrote about this backdrop Sunday, which is sapping enthusiasm for all stocks including oils. Maybe we just have to get through September, which is living up to its history as the worst month of the year for the market. Goldman Sachs says another Fed 75-basis-point hike and then a couple of 50s in order to get key fed funds rate to 4%. President Joe Biden to "60 Minutes": Consumer inflation rate is steady 8.3%, not spiking. Biden says he would commit U.S. soldiers to defend Taiwan if China were to invade. Automakers still have problems with supply chain and with hourly workers. There are just too many people who have not come back to work. Will Fed have to raise until they do? Is that what is driving this? Used car prices are moderating but not enough yet. Does this industry have to go into a recession in order to get the workers back? Autozone (AZO) better than expected (used car service and DIY): adjusted quarterly earnings per share $5.35 versus. $5.18 expected. Revenue also beat: $5.3 billion versus $4.01 billion. Same-store sales for the quarter grew nearly double estimates at 6.2%. Morgan Stanley talks about the need to show why Club holding Salesforce (CRM) should stabilize out of Dreamforce conference. I'm in San Francisco to cover it. Raymond James says this is the inflection point. I think that's too early to know. Jefferies says Walmart (WMT) and Target (TGT) are big winners on collapse of Bed Bath & Beyond (BBBY). I think that's wrong: it's Club holding TJX Companies (TJX), off-price retailer behind T.J. Maxx, Marshall's and HomeGoods. KeyBanc thinks enough is enough on the homebulders: Lennar (LEN) to overweight (buy) from sector weight (hold). KB Home (KBH) to hold from underweight (sell). Both companies are set to report Wednesday. Toll Brothers (TOL) also to hold from sell. PulteGroup (PHM) buy from hold, very contrary call. Multiple price cuts in FedEx (FDX) still. Mix of macro (economy) and micro (company specific). Bank of America says do not sell Club holding Amazon (AMZN) on FedEx (FDX) warning. We said that last week . BofA says iPhone orders still elevated. Good news for Club holding Apple (AAPL) Oppenheimer goes to a outperform (buy) on Netflix (NFLX). Down enough? Ad supported under appreciated. How about Club holding Disney (DIS)? Being totally ignored. Barclays lowers price target on Western Digital (WDC) to $40 per share from $55. BMO says be careful with Micron (MU), but will ultimately go higher. BMO lowers price target to $80 per share from $85, but keeps outperform (buy) rating. "Grand Theft Auto" video game hacked. Not good for Take-Two Interactive (TTWO), which owns GTA publisher Rockstar Games. According to Reuters , hacker claims to be the same one behind last week's Uber (UBER) breach, says they are seeking to "negotiate a deal" with Take-Two. Barclays likes Royal Caribbean (RCL), says enough is enough. Raises price target to $61 per share from $55, keeps overweight (buy) rating. Wells Fargo goes equal weight from overweight (hold from buy) on Adobe (ADBE), takes price target to $310 per share from $425. Just a total overpay, $20 billion, Figma – a sign of perhaps the rest of the business slowing. On "Mad Money" for Monday night, the CEOs of Intuit (INTU), Dutch Bros . (BROS). (Jim Cramer's Charitable Trust is long DIS, CRM, TJX and AAPL. 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 SPECI