What Cramer is watching Wednesday — Fed day, AMD signs of life, China hits Estee Lauder

Published Wed, Nov 2 20229:20 AM EDT

What I am looking Wednesday, at Nov. 2, 2022 U.S. stock futures drop Wednesday ahead of what's expected to be the Federal Reserve's fourth straight meeting of an interest rate hike of 75 basis points. Whether the market's relief rally, which carried the Dow in October to its best month since 1976, can continue may depend on what central bankers signal on future tightening. ADP says October job growth at U.S. companies was 239,000 versus 195,000 expected . The government's monthly employment report will be released Friday, two days after the Fed's decision. Signs of life at Advanced Micro Devices (AMD)? Data center good. Embedded good. Gaming good, but not sure that stays (Sony tells us PlayStation down 10%). PC down 20%. Data center runs cooler than Intel (INTC). No big exposure to China. While missing lowered expectations in the third quarter, Club holding AMD did see a year-over-year revenue growth. The stock is up 6% in the premarket. Advanced Micro Devices CEO Lisa Su on "Mad Money" tonight. Airbnb (ABNB): Disagree with market's judgment, stock down more than 4% in the premarket. No real caution meant. Just making sure no one else comes in. Price target cuts on ABNB across Wall Street after better-than-expected quarter but an outlook warning. Airbnb is in our Bullpen, a watch list for the Club. Goldman Sachs keeps sell rating. Piper keeps neutral. Airbnb CEO Brian Chesky tells me the company is staying disciplined. Club holding Estee Lauder (EL) beats on fiscal first-quarter earnings and matches on revenue. But guides down: blames continued Covid restrictions in China, "tightening of inventory by some retailers in the United States, and a greater negative impact from the far-stronger U.S. dollar. But we're in it for the opening so we have to wait. Be careful not to sell yet. Maybe even buy, with shares down roughly 9% in the premarket. Club holding Devon Energy (DVN): Very strong quarter . Still returning gobs of cash to shareholders. The stock down 3% in the premarket on profit taking. Club holding Humana (HUM) sees membership growth. Beat on third-quarter EPS but misses slightly on revenue. Guide in line. Club holding Eli Lilly (LLY): The weight loss drug is on track but so is the Alzheimer's treatment, which they think is best in show and they have a very strong brain franchise. Is this the EV of biopharma? Eli Lilly CEO David Ricks told me Tuesday evening that the drugmaker's guidance cut was all about the strong dollar, not weakening fundamentals. CVS Health (CVS), Walgreens Boots Alliance (WBA) and Walmart (WMT) tentatively agree to pay about $13.8 billion settle U.S. opioid claims, according to Reuters , citing two people familiar with the negotiations. In the third-quarter , CVS much better than expected earnings-per-share and revenue. Same-store sales for the quarter up 9.9%, more than double estimates. Raises EPS to $8.55 to $8.65 from $8.40 to $8.60. CVS also took a Q3 $5.2 billion charge for opioid crisis settlement. Wolfe Research downgrades miner Cleveland-Cliffs (CLF) to underperform from peer perform (sell from hold). End of cycle. Double downgrade: Bank of America takes cloud company Twilio (TWLO) to underperform from buy (sell from buy); cuts price target to $85 per share from $175. BofA cites survey: 52% respondents expect to spend less. Channel checks give cautious view. Risk to consensus forecast. Cloud company collapse: ZoomInfo Technologies (ZI) tanks more than 20% in the premarket. (Remember, this is NOT the video call company Zoom). Free cash flow sinks. On post-earnings call, ZoomInfo's CFO cites an elongated sales cycle. Power management company Eaton (ETN) barely beats. Price target rises, including Credit Suisse going to $174 per share from $157. Bernstein analyst Toni Sacconaghi says his analysis shows Tesla (TSLA) software run rate revenue of $290 million per quarter, about 1.3% of the EV's total revenue. DuPont (DD) uses China to get out of $5.2 billion Rogers (ROG) buyout deal, would have paid too much. Rogers shares sink more than 40% in the premarket. Meanwhile, DuPont completes sale of its Mobility & Materials segment to Celanese for $11 billion. DuPont shares up 6% in the premarket. Evercore cites seven reasons to sell Block (SQ), including stiffening buy now, pay later; changing its stripes; no capital return; no substantial competitive advantage. Mortgage demand was basically flat last week, but refinancing down 85% year over year. (Jim Cramer's Charitable Trust is long AMD, EL, DVN, HUM, LLY. 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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Jim Cramer on Squawk on the Street, June 30, 2022.

Virginia Sherwood | CNBC

What I am looking Wednesday, at Nov. 2, 2022

U.S. stock futures drop Wednesday ahead of what's expected to be the Federal Reserve's fourth straight meeting of an interest rate hike of 75 basis points. Whether the market's relief rally, which carried the Dow in October to its best month since 1976, can continue may depend on what central bankers signal on future tightening. ADP says October job growth at U.S. companies was 239,000 versus 195,000 expected. The government's monthly employment report will be released Friday, two days after the Fed's decision.
Signs of life at Advanced Micro Devices (AMD)? Data center good. Embedded good. Gaming good, but not sure that stays (Sony tells us PlayStation down 10%). PC down 20%. Data center runs cooler than Intel (INTC). No big exposure to China. While missing lowered expectations in the third quarter, Club holding AMD did see a year-over-year revenue growth. The stock is up 6% in the premarket. Advanced Micro Devices CEO Lisa Su on "Mad Money" tonight.