An Apple store on Nanjing Road Pedestrian Street in Shanghai, China on December 16, 2022.
CFOTO | Edition of the future | Getty Images
My top 10 things to watch Tuesday, January 31
1. Will the outperformance of speculative stocks continue? The worst market performers in 2022 – including crypto, SPAC and cloud software stocks – are among the biggest gainers in this year’s rally. Stay away. As I wrote on SundayI see this as a time to rotate into mature stocks aligned with the so-called old or real economy.
2. You’ll find many of these real economy stocks, or workhorses, in the Dow Jones. Focus on its 30 members to show how they correspond to the names we have in the Trust.
3. According to UBS, iPhone sales, or sales to end users, fell 12% in the fourth quarter of 2022 due to supply chain disruptions; it maintained a buy rating on Apple (AAPL). Let’s assume it’s consensus now, which would put the stock at around $130.
4. Apple is one of 9 Club stocks to report quarterly results on Thursday. The list includes the industrial conglomerate Honeywell International (HON), Starbucks (SBUX) and tech giant Alphabet (GOOGL). These reports and conference calls should provide excellent information on the state of the US economy. Here is our breakdown Thursday’s calendar, including analyst estimates for earnings per share and revenue.
5. McDonald’s (MCD) posted very strong numbers, beating earnings and revenue estimates. But the market doesn’t like it, which is stupid. Market share fell more than 1% in pre-market.
6. Johnson & Johnson (JNJ) won’t be able to use the bankruptcy trick to offload tens of thousands of lawsuits over its talc products. A U.S. Court of Appeals ruled the health care conglomerate wrongly placed a subsidiary in Chapter 11, even though it is not in financial difficulty. The mess remains. The company has already paid $3 billion.
7. Humira’s days as a top-selling drug come to an end today as Amgen (AMGN) begins selling an almost identical organic product. AbbVie (ABBV), which makes the injectable treatment for rheumatoid arthritis, expects a 45% drop in sales in 2023. This is mostly priced into the stock, which is selling at a low multiple.
8. caterpillar (CAT) sales rose 20% in the fourth quarter of 2022 on strong demand for its construction equipment. It’s been a really great quarter, but equities are being treated badly by the market.
9. Deutsche Bank sees improved leadership and efficiency at disney (SAY). New CEO Robert Iger will use his own plan, better integrate Hulu.
ten. The incredible decline of natural gas is something to celebrate as it is used in so many things. Prices fell to their lowest level in nearly two years on Monday, thanks to an unusually warm winter.
(To see here for a full list of Jim Cramer’s Charitable Trust actions.)
As a CNBC Investing Club subscriber 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 talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.