What Cramer is watching Friday — Amazon drop overdone, Apple's outlier quarter, Big Oil profits

Published Fri, Oct 28 20229:07 AM EDT

What I am looking at Friday, Oct. 28, 2022 Amazon (AMZN) is a buy. Negativity built in. AWS cloud unit generating enough sales that you may be getting the rest of the company, including the amazing ad business and e-commerce, for free. Forecast from Amazon after a weak quarter is much too dire. Shares of the Club holding down 13% in premarket. That's overdone. Apple (AAPL) is a buy. The caution they exhibited is far more related to the issues involving the strong dollar than any slowdown. Supply constrained on most popular products. Can you imagine if China comes back? Many price target cuts. Apple's quarter was better than expected , an outlier in an otherwise brutal week for Big Tech earnings. The stock up in the premarket. Club holding AbbVie (ABBV) solid number, more of the same. 5% dividend increase. Expect profit taking. The stock down nearly 4% in the premarket. Club holding Pioneer Natural Resources (PXD) slightly misses on EPS of $7.48. Revenue, excluding sales of purchased commodities and other considerations, of $4.22 billion versus $4.57 billion expected. Total revenue climbed by more than 35% to $6.09 billion. Q4 dividend payout of $5.71 per share translates to 8% annual yield . Club holding Linde (LIN) great quarter . Margins expanding will be a great hydrogen call. Morgan Stanley says Club holding Costco (COST) is "in rare air." International warehouse on track. White space underappreciated. Topline markets healthy. Initial signs of disinflation. Fee hike and special dividend could happen in 2023, says Morgan Stanley analysts. T-Mobile (TMUS) is leaving Verizon (VZ) in the dust. Its growth is much better than both Verizon and AT & T (T). Post-paid network additions, 1.6 million, better than T and VZ combined. High speed internet ads, 578,000. New battleground? Phone net customer ads, 854,000 best in industry. Lowest churn, 0.88%. Caterpillar (CAT) cannot handle all the business it has and will be tapped out by all infrastructure. Coal not ramped for. Most new business is oil and gas. But downgraded by Deutsche Bank: "Recommending CAT after its most recent move is playing with fire," adding, "the quarter was really good." Drawing a line in the sand. CSX (CSX) rail strike still possible. Signalmen failed to ratify. Stanley Black & Decker (SWK) taking another step function lower. Baird downgrades to neutral from outperform (hold from buy). Tremendous amount of inventory in the channel. Exxon Mobil (XOM) better than expected quarter. Production in the Permian Basin, in the southwestern part of the U.S., much greater: record quarterly output of nearly 560,000 oil-equivalent barrels per day. Offshore Guyana, along South America's Atlantic coast, increased to nearly 360,000 oil-equivalent barrels per day. Chevron (CVX): better-than-expected quarterly EPS of $5.56 on revenue of $66.64 billion. Repurchased $3.75 billion in stock. U.S. production up 4%. Barclays upgrades Intel (INTC) equal weight from underweight (hold from sell). "Bottom in sight," analysts say. When pigs fly. Morgan Stanley, which keeps overweight (buy) rating, says Comcast (CMCSA) has durable cash flow. Most diversified, least levered. Trades at the lowest multiple. Peacock losses will start to fade. Universal Parks doing well. Sky $8.6 billion write down, cash flow issues. MoffettNathanson: Solid quarters from American Express (AXP), Visa (V) and Mastercard (MA) show consumer spend remains resilient. Defense contractor L3Harris Technologies (LHX) missed on every line, but I still think it's digesting merger. Book to bill is 1.2X. Revenue was flat. (Jim Cramer's Charitable Trust is long AMZN, AAPL, ABBV, PXD, LIN and COST. 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.

The Amazon Spheres, part of the Amazon headquarters campus, right, in the South Lake Union neighborhood of Seattle, Washington, U.S., on Sunday, Oct. 24, 2021.

Chona Kasinger | Bloomberg | Getty Images

What I am looking at Friday, Oct. 28, 2022

Amazon (AMZN) is a buy. Negativity built in. AWS cloud unit generating enough sales that you may be getting the rest of the company, including the amazing ad business and e-commerce, for free. Forecast from Amazon after a weak quarter is much too dire. Shares of the Club holding down 13% in premarket. That's overdone.
Apple (AAPL) is a buy. The caution they exhibited is far more related to the issues involving the strong dollar than any slowdown. Supply constrained on most popular products. Can you imagine if China comes back? Many price target cuts. Apple's quarter was better than expected, an outlier in an otherwise brutal week for Big Tech earnings. The stock up in the premarket.