Jim Cramer's top 10 things to watch in the market Tuesday: JPMorgan double upgrade, oil prices dip to $75

Published Tue, Dec 6 20229:18 AM EST

My top 10 things to watch Tuesday, Dec. 6, 2022 1. U.S. stock futures point to a mixed open after Monday's sharp selloff. December tends to be seasonally strong, especially late in the month when historically Wall Street looks for the Santa Claus rally. In a commentary , we looked at which Club stocks have been the best performers and worst performers in the past dozen Decembers. 2. Morgan Stanley double upgrades JPMorgan (JPM) from to overweight from underweight (buy from sell). Big call. The bank's operating leverage is inflecting. In a CNBC interview Tuesday, JPMorgan boss Jamie Dimon says inflation is eroding consumer wealth and may cause a recession next year. 3. Oil hit again $75. Bottom? Traders are blaming stronger the U.S. dollar and economic uncertainty. We trimmed Halliburton (HAL), one of our oil holdings, into early crude price strength Monday . Later in the session, prices turned lower and U.S. oil prices are dropping another 1% on Tuesday. 4. Deutsche Bank updates Club name Estee Lauder (EL) to buy from hold; raises price target to $266 per share from $209. Analysts there see difficulties behind the company. China forward. 5. Burlington Stores (BURL) put on US 1 list at Bank of America. In off-price target, the Club likes and owns TJX Companies (TJX), with T.J. Maxx, Marshalls and HomeGoods brands. Cowen and Barid raise their price targets. Cowen sees a path for TJX to have a $100 billion market cap. Trends in warehouse automation should be able to lower wages. 6. Bernstein starts coverage of the Club's favorite retailer Costco (COST) with an outperform (buy) rating. Costco reports quarterly results after the closing bell Thursday. Bernstein starts Walmart (WMT) with a market perform (hold) and Target (TGT) with an outperform (buy). 7. Deutsche Bank downgrades Molson Coors (TAP) to sell from hold. Challenging setup. Heightened competition. Analysts there take Boston Beer (SAM) to a sell from hold. However, Deutsche Bank raises price target on Club holding and Corona beer maker Constellation Brands (STZ) to $249 per share from $244; keeps hold rating. 8. Hundreds of job cuts are coming at PepsiCo (PEP), according to The Wall Street Journal . PepisCo is on the Club's Bullpen watch list. Last month, Coca-Cola (KO) said it would restructure its North American business through a voluntary separation program that includes buyouts. 9. Gitlab (GTLB), big winner, up roughly 17% in the premarket. The company helps develop and digitize teams together on the cloud for less money. Sounds like everyone else but does it faster and cheaper and you can save money in a year. New metric. Smaller than expected loss and better than expected revenue for the quarter. Boosted outlook. 10. President Joe Biden is set Tuesday to join the founder of Taiwan Semiconductor Manufacturing Company (TSM) to announce the opening of a second chip plant in Arizona . TSMC raises investment in the state from $12 billion to $40 billion. The CEOs of Club holdings Apple (AAPL) and Nvidia (NVDA) are also expected to be there. (Jim Cramer's Charitable Trust is long HAL, EL, TJX, COST 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.

My top 10 things to watch Tuesday, Dec. 6, 2022

1. U.S. stock futures point to a mixed open after Monday's sharp selloff. December tends to be seasonally strong, especially late in the month when historically Wall Street looks for the Santa Claus rally. In a commentary, we looked at which Club stocks have been the best performers and worst performers in the past dozen Decembers.

2. Morgan Stanley double upgrades JPMorgan (JPM) from to overweight from underweight (buy from sell). Big call. The bank's operating leverage is inflecting. In a CNBC interview Tuesday, JPMorgan boss Jamie Dimon says inflation is eroding consumer wealth and may cause a recession next year.