Jim Cramer's top 10 things to watch in the stock market Wednesday
My top 10 things to watch Wednesday, Sept. 20
- The Dow, the S&P 500 and the Nasdaq are set for higher opens on Fed decision day after Tuesday’s lower closes. Lower bond yields and oil prices take pressure off the market Wednesday ahead of the afternoon conclusion of the Federal Reserve’s two-day September meeting. No interest rate increase is expected. But investors will be scouring the summary of economic projections and listening to Fed Chairman Jerome Powell’s news conference for any hints on whether one more rate hike might happen this year. Thursday at noon ET, we’ll look ahead to the rest of the year in the market on our Monthly Meeting for Club members.
- U.S. oil prices, despite Wednesday’s dip, have been higher recently and seem headed to $100 per barrel. Money from big funds still coming in. Russia digging in heels. Still no Permian flow. Pioneer Natural Resources (PXD) gets price target hike at Citi to $256 per share from $234. Buy rating kept. Citi also bumps up PT on Coterra Energy (CTRA) by $1 per share to $27. Both PXD and CTRA are Club names.
- Third big IPO in a week: Marketing automation firm Klaviyo is set to start trading Wednesday after pricing its initial public offering above expected range at $30 per share. About $9.2 billion valuation. Ticker symbol KVYO. Kind of Twilio (TWLO) meets Club stock Salesforce (CRM). The other two offerings, Instacart (CART) on Tuesday and Arm Holdings (ARM) last Thursday, had strong debuts followed by pullbacks.
- The auto strike gets ugly. Day 6. The UAW threatens more expanded strikes against the three Detroit automakers if “serious progress” is not made by noon ET on Friday. Club name Ford (F) avoids Canadian union walkout.
- Bank of America cuts Disney (DIS) price target to $110 per share from $135. Keeps buy rating. The analysts are encouraged by parks post-Covid recovery but see more time needed to invigorate direct-to-consumer where streaming losses persist.
- Mexican beer powerhouse Constellation Brands (STZ) gets price target increase at JPMorgan to $307 per share from $276. Keeps overweight (buy) rating. The analysts think consensus will be beaten.
- Bernstein raises price target on Club name Microsoft (MSFT) by $2 per share to $398. Keeps outperform (buy) rating. The analysts say Microsoft jumps into generative AI lead.
- Citi says Intel (INTC) estimates too high as only modest margin expansion. I just don’t see the case to own this one. In semiconductors, we own and like Nvidia (NVDA) and Broadcom (AVGO).
- BofA cuts price target on Dow stock Nike (NKE) to $110 per share from $125. Keeps neutral rating. Ahead of quarterly print, the analysts worry about China impact.
- Wingstop CEO Michael Skipworth on “Mad Money” on Wednesday evening. WING shares upgraded to outperform from neutral (buy from hold) at Wedbush. Price target boosted to $200 from $180. Talking about wing cost mitigation. I’m more worried about borrowing costs.
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