What Cramer is watching Monday — tons of Wall Street downgrades, including Ford and Big Tech

Published Mon, Oct 10 20229:18 AM EDTUpdated Mon, Oct 10 202210:52 AM EDT

What I am looking at Monday, Oct. 10, 2022 Wall Street littered with downgrades of key names, though stocks futures were higher in the premarket. All about questions over whether we get stagflation — stagnant economic growth with high inflation. Two key inflation reports this week: producer prices on Wednesday and consumer prices on Thursday. Bank earnings kick off quarterly reporting season this coming Friday, including Club holdings Wells Fargo (WFC) and Morgan Stanley (MS). As of last Friday, the Dow Jones Industrial Average , the S & P 500 and the Nasdaq turn in three straight days of losses but still turn in their first positive weeks in four. UBS downgrades Club holding Ford (F) to sell from neutral (hold) based on European sales, with a price target lowered to $10 per share from $13. I think that Ford is a function of can't get enough parts. We sold a lot much higher, more than double Friday's $12 close. But we do not want to buy it back until we get the clearing event of having enough parts. It's really crushing Ford even as they have the cars and trucks people want. Last week, Morgan Stanley took Ford to an overweight (buy) rating. After the quarter, I think we're likely to buy it back if we are right about the Federal Reserve's only having a bit more to do on hiking interest rates. UBS also takes down General Motors (GM) to neutral (hold) from buy. Goldman Sachs with very odd call saying that Procter & Gamble (PG) was a Covid winner and now they're now losing share. So Goldman downgrades to neutral (hold) from buy. P & G is great company but a bad stock for us in the Club. Yet it has annual dividend yield of 3%. While the company has a lot of dollar exposure, they also have tremendous leverage to lower producer prices and supply chain improvements. It's one of the largest buyers of plastic and cardboard and surfactants. P & G had huge supply issues. They are behind them. I think the downgrade is a big mistake. Advanced Micro Devices (AMD) will keep going lower because it preannounced yet there are still lots of business lines going well: gaming, high-performance computing and all that is Xilinx, which AMD just bought. I think the pressure is off and AMD can be bought in the $50s. Yes, the $50s. The Club holding is suffering from price target cuts. Club holding Nvidia (NVDA) has a new gaming cycle and it could be huge but they have to clear out the inventory first. Also suffering from price target cuts. Citi says personal computer demand is collapsing so it goes to a neutral (hold) on AMD and Intel (INTC). Obvious. Cowen lowers AMD price target $100 per share from $120; but keeps outperform (buy) rating. Bank of America says Apple's (AAPL) iPad revenue may drop back down to pre-Covid levels. I am really skeptical of this. The Club owns Apple . Morgan Stanley Club holding Meta Platforms (META) cuts price target to $205 per share from $225; but keeps overweight (buy) rating. Club holding Alphabet (GOOGL) cut to $135 per share from $145 at Morgan Stanley; but still expects 11% growth in U.S. online advertising market in 2022 over last year. Piper Sandler reiterates an overweight (buy) rating on Illumina (ILMN). But I like Danaher (DHR) much more and Danaher is breaking up. Danaher is the cheapest I have ever seen it. We own DHR for the Club. Guggenheim downgrades Bristol-Meyers (BMY) to neutral (hold) from buy. Amazingly saying the key catalysts are in the stock. I disagree and think that there are more approvals coming for cancer drugs. Big buyback. But they go hold to buy from neutral (hold) on Merck (MRK) because of cancer drug Keytruda and HPV vaccine Gardasil. Goldman Sachs starts Etsy (ETSY) with a buy rating and a $130-per-share price target. This was a third quarter winner, and I think it's late, but Goldman is making the case that it can be a post-Covid winner. Goldman Sachs starts Wayfair (W) with a neutral (hold) rating, $36-per-share price target. I think that Wayfair is in real trouble although revenue will be flat. Yet losses are so big. Mizuho goes to a buy from neutral (hold) on Toast (TOST), increases price target to $24 per share from $22. Mizuho's restaurant survey says profitability is ahead. As a restaurateur, I don't like this call because there is way too much competition. Not worth it. (Jim Cramer's Charitable Trust is long F, PG, AMD, NVDA, AAPL, META, GOOGL and DHR. 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. 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Traders on the floor of the NYSE, Oct. 7, 2022.

Source: NYSE

What I am looking at Monday, Oct. 10, 2022

Wall Street littered with downgrades of key names, though stocks futures were higher in the premarket. All about questions over whether we get stagflation — stagnant economic growth with high inflation. Two key inflation reports this week: producer prices on Wednesday and consumer prices on Thursday. Bank earnings kick off quarterly reporting season this coming Friday, including Club holdings Wells Fargo (WFC) and Morgan Stanley (MS). As of last Friday, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq turn in three straight days of losses but still turn in their first positive weeks in four.