My top 10 things to watch Wednesday, Jan. 24
- Wall Street is set for a higher open after the S&P 500 closed at another record. The Nasdaq on Tuesday extended its winning streak to four sessions in a row as it aims for its November 2021 record. The Dow took a breather Tuesday, one day after its first-ever close above 38,000. Oil and natural gas are up on Wednesday. Nat gas has had a very volatile January but the Club's lone energy stock has been steady.
- Netflix's huge quarterly subscriber additions are not the crackdown on password sharing but the quality of the content. It isn't linear TV cop, doctor and firefighter shows that won't irritate. Netflix takes a big shot at linear on the deal with WWE parent TKO. However, Netflix says not interested in buying any linear TV assets. The stock soars 10%, supporting the Nasdaq. Lots of price target raises for Netflix.
- China's central bank lowers reserve ratio requirements that banks must maintain by 50 basis points. That will propel Alibaba, Baidu, PDD Holdings, JD.Com, which will work FOR A TRADE. This is not about manipulating the stock market. You can buy them for a trade. This has been the way they have taken tens of billions of dollars in American hard-won savings and used their command economy to create short-term earnings. Consider the People's Republic of China a giant hedge fund.
- Dupont short-cycle businesses, like 3M, very disappointing. Time to give up? The stock sinks roughly 11%. We'll talk about it during the CNBC Investing Club's Monthly Meeting livestream at noon ET. Sold some but DO NOT want to buy it back.
- Multiple price target hikes for Dow stock Procter & Gamble after shares of the consumer products giant soared Tuesday on an earning beat with solid profitability. Club name P&G raised the low end of their full-year EPS guide.
- Club name Danaher downgraded by Barclays. This makes no sense to me given the pipeline of initial public offerings that are coming in biotech. Could the company have screwed up this badly?
- Morgan Stanley adds Amazon as a top pick. The analysts see "improving retail efficiency and profitability, a scaling digital ad business, and profitable, low-to-mid-tees AWS top-line growth" on a percentage basis.
- Citi looking for a solid beat from Microsoft when it reports earnings next week. The analysts raise their price target to $470 per share from $432.
- Apple delays launch of electric vehicle ambitions to 2028. More important, Morgan Stanley says near-term Apple will make its quarter. The analysts see a guide down. Describes next week's earnings as a "clearing event.
- Jefferies thinks Alphabet will guide higher on accelerated ad revenue. The analysts see Google Cloud backlog improving. Pace measured and gradual. Alphabet also issues earnings next week.
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