What Cramer is watching Thursday — Tesla slides, IBM surprises, Danaher rolls on

Published Thu, Oct 20 20229:19 AM EDTUpdated Thu, Oct 20 20229:29 AM EDT

What I am looking at Oct. 20, 2022 Tesla's report was muted — the electric vehicle maker reported weaker-than-expected quarterly revenue, but better-than-expect profit. But the company is recession-resilient and will sell every car. New truck coming. I liked the quarter and the commentary, despite the headlines ... CEO Elon Musk said Tesla (TSLA) could be worth more than Apple and Saudi Aramco combined. Shares slid 5% in the premarket. IBM — A truly good quarter with excellent numbers when it comes to mainframe and hybrid cloud and artificial intelligence. I like the book of business and the use of Red Hat to generate superior returns — sales jumped 18% for the quarter. Very strong. Sticking by $10 billion consolidated free cash flow, $9 billion in cash, dividend is safe. A possible return to greatness ... The stock rallied 3% in off-hours trading. Club holding Danaher (DHR) beat and raise ... no slowdown, all systems go ... company says growth was broad-based across all segments of the company. Club holding Amazon (AMZN) — margin expansion expected even factoring in a slowdown in gross merchandise value (GMV) growth assumption for 2023 and Amazon Web Services. Nvidia (NVDA) clean up of inventory going well ... Piper likes – China cloud customers no alternative ... Knight-Swift Transportation (KNX), a huge trucking company, cuts forecast amidst muted demand and not enough business seasonally. The shipping boom is over and spot rates have collapsed. Alcoa (AA) shares fell more than 10% in the premarket after the aluminum producer reported an unexpected third-quarter loss. Cost squeeze, order fall off, China oversupply and Chinese losing money on 25% to 35% of business ... Nat gas squeeze in two plants in Europe. Ukraine war with Russia really hurting biz. This is really a paradigm of what's going wrong right now as the company can't afford to cut prices but they have to because of oversupply. Ally Financial (ALLY) is really troubled. Wells Fargo takes to sell from hold. MS downgrades to hold from buy — auto loan market switched quickly. AT & T (T) beat both sales and earnings estimates for the third quarter. Raises full-year EPS guidance to $2.50 per share from $2.46 previously. Shares rose more than 2% in trading before the bell. Chemical maker Dow Inc. (DOW) is down 2.5% in the premarket, even though it beat on top and bottom lines for the third quarter. Street focused on rising input costs … management navigating well because Russia causing recession. Tractor Supply Co. (TSCO) beat earnings estimates and raised guidance ... American Airlines (AAL) much better — structural change — constrained capacity is insane. Company beat top and bottom line estimates as travel demand remains strong. Shares up more than 2% in the premarket. Housing really slowing but not apartment rents. Allstate (ALL) said it would report a third-quarter loss because of catastrophe losses. Shares are down more than 10% in the premarket. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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.

Elon Musk said Friday that SpaceX cannot continue fund Starlink terminals in Ukraine "indefinitely" in light of the cost. However, Musk, who is also CEO of electric car company Tesla, he said Saturday that SpaceX will keep funding the Ukrainian government "for free" even though Starlink is "still losing money."

Adrees Latif | Reuters