My top 10 things to watch Tuesday, Feb. 7
1. The Dow, the S&P 500 and the Nasdaq are headed for a muted open ahead of Fed Chairman Jerome Powell’s lunchtime speech at the Economic Club of Washington D.C. Nearly a week ago, the Fed hiked interest rates less aggressively — and Powell, at the time, made what were perceived to be dovish comments. Then on Friday, the jobs report was a blockbuster.
2. Activision Blizzard (ATVI) versus Take Two Interactive (TTWO): the latter blames macro environment while the former just had a flat-out good quarter. The “Call of Duty” video game is a juggernaut and a major regulatory concern at the heart of Club holding Microsoft‘s (MSFT) proposed buyout of Activision.
3. Embattled Bed Bath & Beyond (BBBY) takes advantage of memesters, who may have saved another company. Shares, which nearly doubled Monday, dropped more than 30% early Tuesday after the retailer announced a $1 billion-plus stock offering. Wedbush cuts its BBBY price target to zero and keeps its underperforming (sell) rating.
4. Pinterest (PINS) gets lots of price target increases on Wall Street because of cost cuts, video and shopping. But no real growth. Most of the internet has no real growth. Fourth-quarter EBITDA (earnings before interest, taxes, depreciation, and amortization) beat. Revenue miss. $500 million share buyback over the next 12 months authorized.
5. Boeing (BA) to cut about 2,000 finance and human resources jobs. However, the aircraft maker, which recently relocated its headquarters to Northern Virginia, right outside D.C., expects to “significantly grow” the overall workforce in 2023.
6. DuPont (DD) beats on adjusted Q4 earnings-per-share and matches on revenue. But puts first-quarter EBITDA guide at $710 million versus $762 million expected. Announced Q1 dividend increase of 9%. CEO Ed Breen to work on an at-will basis after 2024, according to SEC filing. Supersedes Breen’s existing employment agreement dated December 2020.
7. Hertz (HTZ) beat on fourth-quarter adjusted EPS and revenue. Corporate demand up 28% in January versus last year, rideshare up 98% and international up 56%.
8. Morgan Stanley rates Molson Coors (TAP) an equal weight or hold. Don’t know if the beer maker can grow sustainability. We like and own Constellation Brands (STZ) for its Mexican beer portfolio.
9. Chegg (CHGG) reports a terrible quarter but they couldn’t bear to say it. The learning platform actually blamed the lack of rigor in classes. The stock sinks roughly 20% early Tuesday.
10. FootLocker (FL) initiated with a buy rating at BTIG. The wonders of new CEO Mary Dillon.
(See here for a full list of the stocks in 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.