Jim Cramer's top 10 things to watch in the market Monday: Stocks, China, Apple

Published Mon, Dec 5 20229:21 AM EST

My top 10 things to watch Monday, Dec. 5, 2022 1. Morgan Stanley's Mike Wilson says he has seen enough of the rally, and he says it's time to bail. There's less than 2% upside at the high end of his year-end S & P 500 price target of 4,000 to 4,150. Stay with defensive stocks and utilities. The industrials have been carrying the market. I wrote about some of the hot old-school stocks lately and how we're playing the sector for the Club. 2. China manufacturing for the U.S. is down 40% , according to the latest CNBC Supply Chain Heat Map data, due to factories being shut down there due to Covid restrictions. According to Reuters, China may be ready to announce 10 more Covid easing measures this week as Beijing slowly admits that the latest variants of Covid are no worse than the flu. 3. Wedbush says the current situation in China is an absolute disaster for Club holding Apple (AAPL). Typical overstatement. Foxconn saw a 29% revenue drop in November, largely because of a slowdown at the biggest iPhone assembly factory in China. But now back to normal soon? Reports indicate a resumption of full production before or around the new year. 4. Atlantic Equities says Sam Bankman-Fried, also known as SBF, will impact everything as the crypto winter continues. Analysts, importantly, cut their price target on digital currency exchange Coinbase (COIN) to $46 per share from $67. In April 2021, as bitcoin was trading near $60,000, COIN hit an all-time high of more than $429 per share. Bitcoin on Monday was just over $17,000. Meanwhile, Crypto broker Genesis, run by Tyler and Cameron Winklevoss, owes clients $900 million according to the Financial Times. 5. Europe cut natural gas demand by a quarter to due unseasonably warm weather. Europe is trying to cut back on Russian nat gas as Moscow's war in Ukraine continues. Meanwhile, OPEC+ left oil production targets unchanged ahead of an EU ban on Russian crude. G7 nations put a $60-per-barrel cap on seaborne Russian oil. 6. Citi cuts price target on Club holding Salesforce (CRM) to $164 per share from $170 but keeps neutral rating. Analysts note the loss of Salesforce partner Veeva Systems (VEEV). After co-CEO departure announcement, an executive vice president at Salesforce jumps ship to be CFO at Frontdoor (FTDR). 7. MoffettNathanson says Club holding Disney (DIS) is much less profitable than thought. Analysts says Bob Iger, who returned as CEO faces a tough road ahead. However, MoffettNathanson keeps outperform (buy) rating and $120-per-share price target. 8. Deutsche Bank downgrades Starbucks (SBUX) to hold from buy but increases price target to $106 per share from $100. Analysts say they are not negative on SBUX; the hold rating reflects "what we deem to be a balanced Risk Reward scenario at present. 9. Ulta Beauty (ULTA) price target raised to $548 per share to $511 at Barclays, which also keeps its overweight rating. I'll be visiting Ulta later Monday and interviewing the CEO for "Mad Money." The Club has its hand in beauty with our position in Estee Lauder (EL). 10. Citi raises price target on PVH Corporation (PVH) to $74 per share from $60. Deutsche Bank is even more bullish with a PT hike to $77 from $72. The company behind the Tommy Hilfiger, Calvin Klein and Van Heusen brands saw some margin pressure but reported a better-than-expected quarter. (Jim Cramer's Charitable Trust is long AAPL, CRM, SBUX and EL. 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.

My top 10 things to watch Monday, Dec. 5, 2022

1. Morgan Stanley's Mike Wilson says he has seen enough of the rally, and he says it's time to bail. There's less than 2% upside at the high end of his year-end S&P 500 price target of 4,000 to 4,150. Stay with defensive stocks and utilities. The industrials have been carrying the market. I wrote about some of the hot old-school stocks lately and how we're playing the sector for the Club.

2. China manufacturing for the U.S. is down 40%, according to the latest CNBC Supply Chain Heat Map data, due to factories being shut down there due to Covid restrictions. According to Reuters, China may be ready to announce 10 more Covid easing measures this week as Beijing slowly admits that the latest variants of Covid are no worse than the flu.

3. Wedbush says the current situation in China is an absolute disaster for Club holding Apple (AAPL). Typical overstatement. Foxconn saw a 29% revenue drop in November, largely because of a slowdown at the biggest iPhone assembly factory in China. But now back to normal soon? Reports indicate a resumption of full production before or around the new year.