Jim Cramer's top 10 things to watch in the market Tuesday: Big Microsoft AI bet, defensive rotation

Published Tue, Jan 10 20239:13 AM ESTUpdated Tue, Jan 10 202310:29 AM EST

My top 10 things to watch Tuesday, Jan. 10, 2023 1. Will the rotation out of health care continue despite possible CVS Health (CVS) bid for primary care company Oak Street Health (OSH)? U.S. stock futures dropped after Monday's mixed session that saw beaten tech catch a bid and boost the Nasdaq at the expense of defensive stocks. But the Dow Jones Industrial Average erased a big gain and closed lower. The S & P 500 was basically flat on the day. Shortly after stocks opened Tuesday, they went higher. Listen to " The Homestretch ," our new daily audio feature exclusive to Club members. It's a way for me to help you get ready for the final hour of trading. Look for our text and email alerts. 2. Microsoft (MSFT) puts $10 billion in ChatGPT creator, OpenAI. Will this make investors less worried about the near-term prospects of the company? We sold some for the Club on Monday. Recently, we wrote about the promise of the artificial intelligence-powered chatbot in possibly taking on Alphabet 's (GOOGL) Google in search. Microsoft and Alphabet are both Club stocks. 3. Coinbase (COIN) cuts 950 employees — 20% of its recently reduced workforce. In June, the crypto exchange cut its then-larger staff by 18%. Coinbase to take a $149 million to $163 million charge. Blames crypto collapse, most recently the FTX debacle. 4. Club holding Danaher (DHR) raises forecast. The life sciences and medical diagnostics company had been considered a superior company but has lost its edge — or has it? 5. Boeing (BA) downgraded to equal weight from overweight (hold from buy) at Morgan Stanley (MS). Approaching fair value. Leaving a catalyst-rich period behind. 6. Wells Fargo upgrades AT & T (T) to overweight from equal weight (buy from hold); price target up to $22 per share from $17. Citi adds AT & T to its "Positive Catalyst Watch List." 7. Chip news: William Blair downgrades On Semiconductor (ON) to market perform from outperform (hold from buy). Worried about the auto cycle. Marvell Technology (MRVL) price target cut to $70 per share from $80 at Oppenheimer. Broad enterprise storage weakness. Very bearish call. Morgan Stanley says Taiwan Semiconductor Manufacturing Company (TSMC) is a "Catalyst Driven Idea." 8. Citi raises price target on Alibaba (BABA) to $160 per share from $144. Here we go again. Suck you in after a big run and before the Chinese government pulls the rug from underneath. 9. On the seas, Morgan Stanley downgrades Norwegian Cruise Line (NCLH) to underweight from equal weight (sell from hold). Analysts also upgrade Ro