Jim Cramer’s top ten things to watch in the stock market on Wednesday
My top 10 things to watch for Wednesday, June 17 1. S&P and Dow futures are essentially flat. The tech-heavy Nasdaq came out on top this morning ahead of the first meeting of the Federal Reserve with Chairman Kevin Warsh in charge. The Fed is expected to leave rates unchanged, but what will Warsh say at the press conference? I think you’re right to push a little “Fedspeak”. SpaceX has risen again in the market, but only modestly. Yesterday it closed well at the top. 2. We are holding the June Monthly Meeting of the Investment Group at noon ET. It is not too late to register. My partner Jeff Marks and I will discuss each name in our portfolio, and I plan to reveal which of my favorite stocks to buy right now. 3. JPMorgan has come out in defense of Broadcom Club, saying it will be an “aggressive buyer” of the manufacturer whose shares are already down from their previous high earnings. There was also talk of a delay or cancellation of Google’s ninth-generation tensor processing unit (TPU), which was designed in collaboration with Broadcom. A little insider quote from the chairman of Broadcom caught my eye yesterday. 4. Citi raised its price objectives on semiconductor equipment stocks Applied Materials, Lam Research, and KLA Corp. Analysts believe that spending on wafer fab equipment could reach $250 billion by 2028, which means a 25% increase over that year, due to ongoing capacity issues at TSMC and memory makers. These are the top three in the semicap group. They benefit from scarcity. 5. Intel has begun manufacturing its most advanced manufacturing process to date, known as 18A-P. The company claims that this node delivers 9% higher performance or consumes 18% less power than before. It would be good to close Apple as an established customer. Intel’s manufacturing opportunity is the main reason we participated in the Club two weeks ago. 6. Wells Fargo raised its price target on Cummins to $874 from $794. Like Caterpillar, Cummins has great upside from data center architecture and all of its energy needs. But is it as good as the Eaton Club’s name? It’s hard to say because Eaton has gone smart inside the server rack with its liquid cooling solution. Dividing its auto business is another smart move. 7. FedEx saw its price target cut on Wells Fargo, but only because analysts adjusted for FedEx Freight’s split. As the spin-off and FDX adopt a new fiscal calendar, Wells warned that next week’s earnings report could be noisy. They expect the actual results to be stronger, which may compensate for the complex perception. A purchase order is maintained. We handle FDX and FedEx Freight for the Club. 8. Citi has started Figma with a buyout, arguing that more AI traction will drive “significant upside” to consensus ratings. Competition from Figma and others could really hurt rival Adobe. I can’t recommend Adobe here despite it being down over 40% year to date. We still don’t know who will manage the company. Wait to bet on returns until you can at least put a face to Adobe’s future. 9. TD Cowen likes SailPoint even more after its investor day. Analysts said yesterday’s event showed how a cyber company will benefit from managing digital resources using AI or other machines rather than humans. They said the “unprecedented expansion” of cybersecurity threats is another windfall. I’m not good at SailPoint. The bad deal of Thoma Bravo that hurt many. 10. Citi has opened a 30-day catalyst watch on RTX. Analysts not only expect the stock to return to earnings next month, but say the aerospace and defense conglomerate is likely to deliver a beating quarter and raise more than its peers. Citi kept it when it was purchased. For Club, Honeywell and Boeing are our aerospace bets. Sign up for my free Top 10 Morning Thoughts on the Market email newsletter (See here for a full list of stocks from 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 stock in his charity portfolio. When Jim talks about a stock on CNBC TV, he waits 72 hours after issuing a trade warning before making a trade. THE PRIVATE INFORMATION OF THE BURNING CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AND OUR PRIVACY POLICY. NO LEGAL LIABILITY OR OBLIGATION EXISTS, OR IS CREATED, BY YOUR ACCEPTANCE OF ANY INFORMATION PROVIDED BY CONTACTING THE INVESTMENT CLUB. NO PARTICULAR RESULT OR INTEREST IS GUARANTEED.
