What Cramer is watching Tuesday — October rally; Wall Street likes banks, mixed on tech

Published Tue, Oct 4 20229:13 AM EDT

What I am looking at Tuesday, Oct. 4, 2022 Second day rally? U.S. stock futures point to a higher open after the first trading day of the new month and quarter got off to a roaring start. The S & P 500 , which closed Friday at its lowest level since November 2020, jumped more than 2.5% on Monday. Investors are hoping to put September's terrible market behind them, bidding up stocks as recently spiking bond yields continue to drop. Everyone is afraid to rule out a Lehman-moment for embattled Credit Suisse (CS). However, I think the Swiss government would allow UBS Group (UBS) to buy them. Citi likes JPMorgan (JPM) ahead of earnings. I think the banks might have good numbers. Goldman Sachs on Monday called Club holding Wells Fargo (WFC) a buy for many of the same reasons we own the stock . JPMorgan and Wells Fargo report their latest quarters on Oct. 14 as banks kick off earnings season. Citi upgrades BNY Mellon (BK), usually a sign of worry about credit risk because this one has little; downgrade M & T Bank (MTB). JPMorgan cuts price target on Club holding Disney (DIS) to $145 per share $160. Losses from direct-to-consumer but looking for quarter to be over with. Bank of America plays catch up and cuts price target on Club holdings Meta Platforms (META) and Google-parent Alphabet (GOOGL). Western economy GDP recession. JPMorgan says Club holding Amazon (AMZN) remains top idea. Citi says buy Schlumberger (SLB) ahead of the oilfield services company's analyst day on Nov. 3. The Club owns peer Halliburton (HAL), which is way down and I think is a better buy. UTZ Brands (UTZ) gets a new CEO: Howard Friedman comes from consumer-packaged goods company Post Holdings (POST). Dylan Lissette, after 27 years at UTZ and nine years at the helm, becomes executive chairman. Piper Sandler likes it; keeps overweight (buy) rating and $21-per-share price target. JMP Securities cuts price target on homebuilder Lennar (LEN) to $115 per share from $130 on mortgages rates. Good example of wacky price target since the heyday. LEN closed at $78 per share on Monday. KeyBanc cuts price target on London-based chemical giant LyondellBasell (LYB) to $65 per share from $73. Slowing plastic. KeyBanc also lowers Westlake (WLK) PT to $79 from $90 and Dow Inc. (DOW) to $38 from $45. U.S. is making major advances since the Inflation Reduction Act for electric vehicles. But there's a lack of minerals needed, due in part to mining in China. Not sure the advance can reach the subsidies. Deutsche Bank raises all lithium producers plays: Albemarle (ALB), Livent (LTHM) and Lithium Americas (LAC). Demand versus supply. There's a big shortage thanks to the EV boom. EV-maker Rivian Automotive (RIVN) puts up better than expected numbers. Cathie Wood buys Tesla (TSLA) on the dip. Truist, a big supporter of Carvana (CVNA), trims numbers. But says it has liquidity to make it. Weakening demand and softer pricing for used cars. Small cut in revenue estimate. Still very bullish: macro trend a headwind. Evercore ISI likes Edward Lifesciences (EW), says TAVR heart procedure business is picking up. Oct. 27 earnings report. UBS upgrades Domino's Pizza (DPZ) to buy from neutral (hold). Demand worries are overblown. Catch up price target cut to $385 per share from $430. The stock closed Monday at $316. Deutsche Bank cuts Block (SQ) price target to $95 per share from $155; but says the company's Cash App is a potentially a "sleeping giant." (Jim Cramer's Charitable Trust is long WFC, DIS, META, GOOGL, AMZN and HAL. 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.

Traders work on the floor of the New York Stock Exchange on September 21, 2022 in New York City.

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What I am looking at Tuesday, Oct. 4, 2022

Second day rally? U.S. stock futures point to a higher open after the first trading day of the new month and quarter got off to a roaring start. The S&P 500, which closed Friday at its lowest level since November 2020, jumped more than 2.5% on Monday. Investors are hoping to put September's terrible market behind them, bidding up stocks as recently spiking bond yields continue to drop.
Everyone is afraid to rule out a Lehman-moment for embattled Credit Suisse (CS). However, I think the Swiss government would allow UBS Group