My top 10 things to watch Monday, Jan. 13 1. More pain in speculative corners of the market like quantum computing, with Rigetti and D-Wave down sharply in the premarket. Also keep an eye on the likes of Palantir , fintech player Dave and Applovin . In my Sunday column for Investing Club subscribers , I discussed how the quantum craze reminded me of the meme stock mania of four years ago. 2. The tech-heavy Nasdaq is on track to open down roughly 1%, due in part to the weakness in some of those once-hot stocks listed above. I’ve been looking for the speculative excess to come out of this market. The S & P 500 and Dow are also looking at lower opens. 3. Shares of Club name Nvidia are lower after the Biden administration unveiled tighter rules on artificial intelligence chip exports . The latest set of rules includes a cap on AI chip exports to many countries, whereas previous iterations largely focused on China and Russia. It’s the opposite of Nvidia’s ambitions on “sovereign AI.” 4. Meta Platforms CEO Mark Zuckerberg slammed Apple during a lengthy interview on Joe Rogan’s popular podcast . He said Meta’s profit would double if Apple stopped enforcing its “random rules.” Zuckerberg truly sounded like the Justice Department on every count. Meta and Apple are both Club stocks. 5. Johnson & Johnson announced a $14.6 billion acquisition of Intra-Cellular Therapies , which makes drugs for neurological conditions including schizophrenia. First big deal of the year in health care? For the Club, we own Bristol Myers Squibb for its recently approved schizophrenia drug Cobenfy. I’m at the influential JPMorgan Healthcare Conference in San Francisco this week. 6. Barclays and JMP Securities raised their price targets on Robinhood to $54 and $60 a share, respectively, up from $49 and $53. Both shops have buy-equivalent ratings on the stock. Barclays believes robust trading activity in the fourth quarter should help Robinhood deliver an earnings beat. 7. Evercore ISI upgraded Chewy to outperform from a hold-equivalent rating and upped its price target to $47 a share from $34. I turned positive on the online pet food company more than a year ago, after CEO Sumit Singh came on “Mad Money” with the stock at roughly $19 and told a compelling story about “the new Chewy.” 8. Will the remarkable turnaround in RH continue? Morgan Stanley thinks so. Analysts upgraded the luxury home furnishings provider to a buy-equivalent rating from hold, arguing that its operating leverage is underappreciated and a recovery in demand is still early innings. Shares of RH are up 54% over the past year, but still well below 2021 highs. 9. JPMorgran downgraded Club name Constellation Brands to neutral from a buy-equivalent overweight on weakness with the Hispanic consumer. I don’t disagree, as I explained in a recent mea culpa . We downgraded the stock Friday in our earnings commentary for Club members. Elsewhere in our portfolio, TD Cowen upgraded longtime holding Linde to buy from hold. 10. Bank of America downgraded EOG Resources , which strikes me as an odd call given U.S. oil is coming off its third straight winning week for the first time since July. That’s part of the reason Coterra Energy was the Club’s No. 1 performer last week . However, BofA analysts worry that non-OPEC supply growth could put pressure on oil prices in the coming years. 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.
The new D-Wave Systems Advantage quantum computer, the first such system with a processor architecture of over 5,000 qubits to go into operation outside North America, is seen at the Forschungszentrum Jülich research center on January 17, 2022 in Julich, Germany.
1. More pain in speculative corners of the market like quantum computing, with Rigetti and D-Wave down sharply in the premarket. Also keep an eye on the likes of Palantir, fintech player Dave and Applovin. In my Sunday column for Investing Club subscribers, I discussed how the quantum craze reminded me of the meme stock mania of four years ago.
2. The tech-heavy Nasdaq is on track to open down roughly 1%, due in part to the weakness in some of those once-hot stocks listed above. I’ve been looking for the speculative excess to come out of this market. The S&P 500 and Dow are also looking at lower opens.
3. Shares of Club name Nvidia are lower after the Biden administration unveiled tighter rules on artificial intelligence chip exports. The latest set of rules includes a cap on AI chip exports to many countries, whereas previous iterations largely focused on China and Russia. It’s the opposite of Nvidia’s ambitions on “sovereign AI.”
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