Jim Cramer’s top 10 things to watch in the stock market Wednesdsay
My top 10 things to watch Wednesday, Jan. 28 1. The S & P 500 and Nasdaq were headed for higher opens this morning, driven by soaring chip stocks after ASML reported an insane backlog for the data centers. It has now doubled from when we were told they were overbuilding and didn’t have business. I hesitate to think about the numbers this company could be doing if it were allowed to sell unfettered in China. Also today, the Federal Reserve is expected to hold interest rates steady after its meeting, and we get earnings from Meta Platforms and Microsoft after the bell. 2. Speaking of China, is it time to put the Chinese H200 orders in for ByteDance, Tencent, and Alibaba ? Looks like it. Reuters reports that China has approved the sale of Nvidia’s H200, sending the AI chip giant’s shares higher this morning. It’s a bright spot for Nvidia stock, which has had a rough go over the past five sessions. 3. GE Vernova had a huge quarterly blowout, yet the Club stock was down 4%. The Club name has a huge waiting list, and not all from data centers. Worldwide power demand is accelerating, and natural gas used in GEV’s turbines is the most commercial. Nuclear is coming, but that will be years away. 4. Corning reported a good quarter this morning. But the Club stock dropped roughly 2% after soaring more than 15% yesterday. It’s not surprising to see Corning give back some of yesterday’s gains after Meta Platforms agreed to pay up to $6 billion to Corning for fiber-optic data center cables. 5. Texas Instruments delivered its best quarter that I can ever recall. Industrial, data center, and inventory are all perfect. People really hated this stock, which was soaring more than 7% this morning on the print. Price targets are going up on Wall Street. Bank of America upgraded it to a hold from a sell on strong free cash flow recovery. 6. Seagate ‘s gross margins will improve on orders that are incredible, and it will make more and more each quarter. Strong reported quarter. The data storage company has been disciplined on capital expenditures. Shares of Seagate, which have already been on a roll this year, were soaring more than 10%. 7. Starbucks reported mixed results, beating sales estimates but missing on earnings. More importantly, transactions increased for the first time in two years. “Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule,” CEO Brian Niccol said in a statement. Shares rose more than 7% in the premarket. Fellow Club stock Danaher reported beats on the top and bottom lines; it also exceeded its Q4 margin and cash flow estimates. Danaher was down 3%. We’ll send our full reports on both stocks, as well as on GEV and Corning, later this morning. 8. Piper Sandler raised its PT on Bristol Myers to $66 from $62 and kept its buy rating. The firm said the stock is too cheap and does not reflect its return to growth and its strong drug pipeline. Shares were unmoved. 9. Amazon said it plans to cut about 16,000 white-collar jobs, its second round since last October, when 14,000 employees were let go. In a blog post , the company wrote that the layoffs were part of an ongoing effort to “strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.” It’s a confusing strategy. 10. Boeing got some price target hikes from analysts, including those at Citi, after yesterday’s messy but incrementally better quarter and outlook on the turnaround. Citi raised its PT to $290 from $270 and kept its buy rating. The stock should not have been down yesterday as the tanker program issue was discrete and FCF improved. 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 discussed a stock on CNBC, 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.
