My top 10 things to watch Friday, May 23
2. At the same time, Apple raised iPhone trade-in prices in China so customers could get more money for new devices. The move to spur demand in the world’s second-largest economy comes as Apple faces tougher competition from Huawei and other domestic players.
3. Wall Street was headed for a sharply lower open today on Trump’s Apple comments and his saying he is “recommending a straight 50% Tariff on the European Union.” The president said trade talks with the EU have stalled. Meanwhile, the U.S. and China keep the lines of communication open on trade after earlier this month pausing their triple-digit tariffs on each other’s imports.
4. Ross Stores shares sank 13% this morning after the off-price retailer withdrew full-year guidance due to “macroeconomic and geopolitical uncertainty.” Ross, which did best estimates with first-quarter earnings and revenue, also mentioned the stressed consumer. Rival TJX Companies, a Club holding behind T.J. Maxx, reported a respectable Q1 and managed to maintain its full-year outlook.
5. Deckers Outdoor shares plunged more than 19% this morning despite a quarterly earnings beat and a slight revenue beat, too. The company behind UGG and Hoka decline to release full-year guidance due to macro uncertainty. Decker signaled current-quarter guidance below estimates. Lots of Wall Street analyst price cuts and a downgrade to hold from buy at Telsey.
6. Intuit shares jumped nearly 7% this morning after better-than-expected quarterly earnings and revenue. The TurboTax and QuickBooks company also saw truly terrific numbers for its Credit Karma business. Intuit’s financials were the star among the companies that reported last night. Lots of analyst praise.
7. Barclays raised its Ralph Lauren price target to $321 per share from $260. Finally, some recognition for a terrific set of numbers and the iconic fashion brand is the king of social. Investors were not impressed, selling the stock down 2.5%. Many other analysts also boosted their PTs.
8. Wedbush said the “dark chapter” for Tesla is over, boosting it price target to $500 per share from $350. I agree with this call. The analysts feel that Elon Musk is once again committed running Tesla and focusing on the future of self-driving electric vehicles and robotics.
9. Citi cut its price target on Club name Salesforce to $310 per share from $335 and kept neutral. The analysts see business slowing down. I told Club members on this week’s Monthly Meeting Salesforce is one of the portfolio stocks that I am worried about. Not to mention ServiceNow is taking a direct shot at Salesforce by ramping up its customer relationship management platform.
10. Okta is still a Wall Street as demand for the company’s identity protection software remains strong. Zscaler similarly is loved by analysts. Both can do no wrong. I like CrowdStrike.
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.
