What Cramer is watching Tuesday — big J&J deal, Lilly guidance light, Biden scolds Big Oil

Published Tue, Nov 1 20229:12 AM EDT

What I am looking at Tuesday, Nov. 1, 2022 U.S. stock futures higher after the Dow Jones Industrial Average closed October with the best monthly gain (up nearly 14%) since 1976. We sliced and diced the Club stocks in the Dow two ways, here and here . The Federal Reserve begins its two-day November meeting Tuesday. Fourth straight 75-basis-point interest rate hike expected when it wraps up Wednesday. Investors are wondering whether the Fed is going to signal any relief ahead in the magnitude of rate increases. Club holding J ohnson & Johnson (JNJ) buys Abiomed (ABMD), premier heart pumping company, in a deal valued at $16.6 billion. J & J is paying a hefty premium: $380-per-share upfront, plus extra $35-per-share if certain milestones are met. Abiomed up more than 50% in the premarket. J & J juiced growth ahead of its separation into two companies: one, pharma and the other, consumer brands. This will raise the growth rate of the MedTech portion of new J & J company. Club holding Eli Lilly (LLY): Better-than-expected third-quarter earnings and revenue. Lilly trims guidance on full-year reported EPS to $7.70 to $7.85 and sales to $28.5 billion and $29 billion due to additional $300 million foreign exchange drag since last update. Remember key thing is the FDA has granted fast track for tirzepatide for obesity. The drug, marketed as Mounjaro, already approved to treat type-2 diabetes. Mounjaro huge Q3 beat: $187.3 million versus $79 million expected. Established type-2 diabetes treatment Trulicity misses: $1.85 billion versus $1.95 billion. Mounjaro took share from Lilly's own drug. Pfizer (PFE) beats on Q3 earnings and revenue; raises outlook. Covid vaccine, Comirnaty, $4.4 billion versus $2.66 billion expected. Covid antiviral Paxlovid $7.51 billion versus $7.64 billion expected. China, are they ready to open? Did they reverse engineer the MRNA vaccine technology? President Joe Biden calls on oil and natural gas companies to stop "war profiteering," threatens windfall tax. Is he Jimmy Carter? Club holding Pioneer Natural Resources (PXD) reported its quarter last week and returns tons of cash to shareholders. Club holding Devon Energy (DVN) reports after the closing bell Tuesday. Think of it like this: The companies invested heavily and are now reaping the gains. The difference between their cost and they sell at is their profit, of course. They sell at market price. What if they didn't sell at market price but sold at something less. It would be like if you bought Club holding Amazon (AMZN) years ago at $50 per share. Now the price of Amazon stock is $103 but you decided at sell at $73 so you would make less money. How would that even work? The price of oil is no more set by Exxon than the price of Amazon stock set by Amazon. Uber (UBER): Q3 revenue better than expected and the stock surges roughly 12% in the premarket. Bookings surge, quarterly loss though. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) very good: $516 million versus $470 million expected. Forward guidance looking good: Q4 gross bookings seen up 23% to 27% year over year. Penguin Random House proposed purchases of Simon & Schuster blocked by federal judge. Justice Department tougher on M & A. Medical diagnostics company Hologic (HOLX): We just has them on Mad Money. Beat on fiscal fourth quarter: EPS of 82 cents versus 63 cents expected and revenue of $953 million versus $864 million. If you like this, you should buy Club holding Danaher (DHR). FinTech company SoFi (SOFI) beats on third quarter revenue $419.3 million versus $392 million expected. Adjusted Ebitda $44.3 million versus $29.1 million expected. Shares of SoFi surge 17% in the premarket, though as of Monday's close the stock was down 65% year to date. Molson Coors (TAP) misses slightly on third-quarter EPS, beats on revenue of $2.94 billion. For the Club, we own Mexican beer powerhouse Constellation Brands (STZ). (Jim Cramer's Charitable Trust is longJNJ, LLY, PXD, DVN, AMZN, DHR and STZ. 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 (NYSE) on October 27, 2022 in New York City. Stocks continued their upward gains Thursday with the Dow rising nearly 400 points following a new GDP report that beat expectations.

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What I am looking at Tuesday, Nov. 1, 2022

U.S. stock futures higher after the Dow Jones Industrial Average closed October with the best monthly gain (up nearly 14%) since 1976. We sliced and diced the Club stocks in the Dow two ways, here and here. The Federal Reserve begins its two-day November meeting Tuesday. Fourth straight 75-basis-point interest rate hike expected when it wraps up Wednesday. Investors are wondering whether the Fed is going to signal any relief ahead in the magnitude of rate increases.
Club holding Johnson & Johnson (JNJ) buys Abiomed (ABMD), premier heart pumping company, in a deal valued at $16.6 billion. J&J is paying a hefty premium: $380-per-share upfront, plus extra $35-per-share if certain milestones are met. Abiomed up more than 50% in the premarket. J&J juiced growth ahead of its separation into two companies: one, pharma and the other, consumer brands. This will raise the growth rate of the MedTech portion of new J&J company.