10 things to watch in the stock market Tuesday: Morgan Stanley beats, Nvidia call

Published Tue, Apr 16 20248:41 AM EDT

10 things to watch Tuesday, April 16 The stock market is trying to stabilize after a couple of nasty days in a row as the attention shifts to corporate earnings, which are generally positive Tuesday. Here are 4 ways we handle volatility at the Club . Big beat for Morgan Stanley . Revenue of $15.14 billion tops $14.46 billion estimate, and $2.02 in earnings per share (EPS) clears $1.66 estimate. Roughly 20% return on tangible equity. At the Club name, trading and investment banking (IB) revenues were better than expected. Same with wealth management (WM) and pretax margin was a little better than expected, too. Brought in about $95 billion in net new assets. Repurchased $1 billion in stock. Need to hear about the WM probe. Bank of America rounds out the string of good quarters from the banks. Revenues beat and adjusted EPS of 83 cents beats estimates of 76 cents. Return on tangible common equity 12.7%. Net interest income (NII) was higher than expected. IB revenue better than expected. Solid quarter for Johnson & Johnson . Sales slightly miss but EPS beats. Raises low end of EPS guidance by 5 cents. Organic revenue growth up 7.7%. Pharma up 8.3% and Medical Devices up 6.3%. UnitedHealth Group are earnings better than feared. Revenues up nearly 9% to $99.8 billion, beating $99.21 billion, despite still dealing with fallout from a cyberattack on its subsidiary Change Healthcare. Cost ratio better than expected. Adjusted EPS of $6.91 beats $6.59. Backs full year outlook. Club name Honeywell is downgraded to hold from buy at Deutsche Bank on sluggish growth prospects. This is why CEO Vimal Kapur needs to reshape the portfolio. Barclays double upgrades Tyson Foods to an overweight (buy) from underweight (sell). Evercore ISI initiates coverage on a handful of semis. Likes all in their coverage except Intel and Qualcomm . Favors Club names Nvidia and Broadcom as well as Advanced Micro Devices and Marvell in parallel processing and Texas Instruments , Analog Devices , Microchip Technology and NXP Semiconductors in internet of things. JPMorgan reiterates Uber as well as Club names Amazon and Meta Platforms as its top internet picks heading into earnings season. Goldman starts coverage on DraftKings with a buy and $60 -per-share price target. The analysts call it a revenue compounder with a growing total addressable market (TAM) and inflecting profits. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer's Charitable Trust.) 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.

10 things to watch Tuesday, April 16

The stock market is trying to stabilize after a couple of nasty days in a row as the attention shifts to corporate earnings, which are generally positive Tuesday. Here are 4 ways we handle volatility at the Club.
Big beat for Morgan Stanley. Revenue of $15.14 billion tops $14.46 billion estimate, and $2.02 in earnings per share (EPS) clears $1.66 estimate. Roughly 20% return on tangible equity. At the Club name, trading and investment banking (IB) revenues were better than expected. Same with wealth management (WM) and pretax margin was a little better than expected, too. Brought in about $95 billion in net new assets. Repurchased $1 billion in stock. Need to hear about the WM probe.
Bank of America rounds out the string of good quarters from the banks. Revenues beat and adjusted EPS of 83 cents beats estimates of 76 cents. Return on tangible common equity 12.7%. Net interest income (NII) was higher than expected. IB revenue better than expected.
Solid quarter for Johnson & Johnson. Sales slightly miss but EPS beats. Raises low end of EPS guidance by 5 cents. Organic revenue growth up 7.7%. Pharma up 8.3% and Medical Devices up 6.3%.
UnitedHealth Group are earnings better than feared. Revenues up nearly 9% to $99.8 billion, beating $99.21 billion, despite still dealing with fallout from a cyberattack on its subsidiary Change Healthcare. Cost ratio better than expected. Adjusted EPS of $6.91 beats $6.59. Backs full year outlook.
Club name Honeywell is downgraded to hold from buy at Deutsche Bank on sluggish growth prospects. This is why CEO Vimal Kapur needs to reshape the portfolio.
Barclays double upgrades Tyson Foods to an overweight (buy) from underweight (sell).
Evercore ISI initiates coverage on a handful of semis. Likes all in their coverage except Intel and Qualcomm. Favors Club names Nvidia and Broadcom as well as Advanced Micro Devices and Marvell in parallel processing and Texas Instruments, Analog Devices, Microchip Technology and NXP Semiconductors in internet of things.
JPMorgan reiterates Uber as well as Club names Amazon and Meta Platforms as its top internet picks heading into earnings season.
Goldman starts coverage on DraftKings with a buy and $60 -per-share price target. The analysts call it a revenue compounder with a growing total addressable market (TAM) and inflecting profits.

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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.