Jim Cramer's top 10 things to watch in the market Thursday: Fed selling, chip stocks boost, Disney concern

Published Thu, Dec 15 20229:19 AM ESTUpdated Thu, Dec 15 20229:24 AM EST

My top 10 things to watch Thursday, Dec. 15, 2022 1. Day 2 of Federal Reserve-driven pressure on Wall Street after Chairman Jerome Powell and company Wednesday projected a higher interest rate level than previously thought for when they eventually stop hiking. Clueless sellers don't realize that Powell is targeting wage inflation and he's nowhere near where he wants to be. So now they sell? Hello? Retail sales for November drop more than expected fueling recession fears. 2. Barclay's raises price target on Club holding Wynn Resorts (WYNN) to $95 per share from $75; keeps an equal weight (hold) rating. JPMorgan puts WYNN on its gaming and lodging list for 2023, citing Macao opening more broadly as an opportunity. It's a bet we've been making on WYNN and other Club names tied closely to China relaxing Covid rules, Estee Lauder (EL) and Starbucks (SBUX). 3. Citi raises price target on Club holding Linde (LIN) to $402 per share from $322; keeps buy rating. We own the industrial gas giant for its defensive posture. Analysts there say, "A faster China recovery would push us towards cyclicals." We also see Linde as a beneficiary of the Inflation Reduction Act in the U.S. 4. Morgan Stanley cites Club holding Advanced Micro Devices (AMD) as a top semiconductor pick for 2023. Analysts there also say they are "positively inclined" toward Club name Qualcomm (QCOM). HSBC starts Club stock Nvidia (NVDA) with a reduce rating and a $136-per-share price target; says downside not priced in. 5. UBS lowers price target on Eli Lilly (LLY) to $420 per share from $428; but keeps buy rating. Despite recent lighter EPS guidance, Mounjaro's bright future as an obesity drug in addition to one that treats type-2 diabetes, according to analysts. 6. Credit Suisse downgrades Anheuser-Busch Inbev (BUD) to underperform from neutral (sell from hold). Analysts there see downside earnings risk. For the Club, we own and like Corona beermaker Constellation Brands (STZ). 7. Cowen says Club holding Disney (DIS) made a "significant strategic error that cannot be undone" when it brought Fox's entertainment assets for $71 billion in 2019. Cowen says the deal accounted for 77% of mergers and acquisitions actively when Bob Iger was previously CEO. Now that he's back, analysts there are "skeptical" Iger can do anything to meaningfully alter the trajectory of Disney's business. 8. Barclays raises price target on Royal Caribbean Cruises (RCL) to $70 per share from $66; keeps overweight (buy) rating. Analysts also keep Carnival Cruise Lines (CCL) as an overweight rating and increases their PT to $12 from $10. 9. Cowen downgrades JetBlue (JBLU) to market perform from outperform (hold from buy); trims price target to $10 per share from $9. In the airlines group, analysts there like United (UAL) as a Best Idea in 2023. 10. J.M. Smucker (SJM) price target raised at Credit Suisse to $165 per share from $145; keeps neutral rating. Analysts there cite improvements in the business model. (Jim Cramer's Charitable Trust is long WYNN, EL, SBUX, AMD, QCOM, NVDA, LLY and DIS. 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 Thursday, Dec. 15, 2022

1. Day 2 of Federal Reserve-driven pressure on Wall Street after Chairman Jerome Powell and company Wednesday projected a higher interest rate level than previously thought for when they eventually stop hiking. Clueless sellers don't realize that Powell is targeting wage inflation and he's nowhere near where he wants to be. So now they sell? Hello? Retail sales for November drop more than expected fueling recession fears.

2. Barclay's raises price target on Club holding Wynn Resorts (WYNN) to $95 per share from $75; keeps an equal weight (hold) rating. JPMorgan puts WYNN on its gaming and lodging list for 2023, citing Macao opening more broadly as an opportunity. It's a bet we've been making on WYNN and other Club names tied closely to China relaxing Covid rules, Estee Lauder (EL) and Starbucks (SBUX).