An Apple Store on Nanjing Road Pedestrian Street in Shanghai, China, on December 16, 2022.
CFOTO | Future release | Getty Images
My top 10 things to watch Tuesday January 31st
1. Will the outperformance of speculative stocks continue? The market’s worst performers of 2022 — including crypto, SPACs and cloud software stocks — are some of the biggest winners in this year’s rally. Stay away. As I wrote on Sunday, I see this as a moment to rotate into mature stocks that are aligned with the so-called old or real economy.
2. You’ll find many of these real economy stocks, or workhorses, in the Dow. We took a look at its 30 members to show how they fit with the names we own at the Trust.
3. UBS says that iPhone sales, or sales to end users, fell 12% in the fourth quarter of 2022 as a result of supply chain disruptions; keep a buy rating on it Apple (AAPL). Let’s find out what is now consensus, which would put the stock at around $130.
4. Apple is one of 9 club stocks to report quarterly earnings this Thursday. The list includes industrial conglomerate Honeywell International (English), Starbucks (SBUX) and tech giant Alphabet (GOOGL). These reports and conference calls should provide great information on the state of the US economy. Here’s our breakdown of Thursday’s schedule, including analyst estimates for earnings per share and revenue.
5. McDonald’s (MCD) posted really great numbers – top earnings and revenue estimates. But the market doesn’t like it, which is stupid. Shares fell more than 1% in the premarket.
6. Johnson & Johnson (JNJ) won’t be able to use the bankruptcy trick to clear tens of thousands of lawsuits over its talc products. A US appeals court has ruled that the health care conglomerate wrongly placed a subsidiary in Chapter 11 even though it is not in financial distress. Stay a mess. The company has already paid $3 billion.
7. Humira’s days as the best-selling drug end today as Amgen (AMGN) begins selling an almost identical biologic. Abb Vie (ABBV), which makes the injectable treatment for rheumatoid arthritis, expects a 45% drop in sales in 2023. That’s mostly priced into the stock, which sells at a low multiple.
8. Caterpillars (CAT) sales rose 20% in the fourth quarter of 2022 on strong demand for its construction equipment. This is indeed a great quarter, but stocks are being treated poorly by the market.
9. Deutsche Bank sees improving leadership and efficiency Disney (DIS). New CEO Robert Iger will use his own plan, will better integrate Hulu.
10. The amazing decline of natural gas is something to celebrate because it is used in many things. Prices fell to their lowest level in nearly two years on Monday, thanks to an unseasonably warm winter.
(See here for a complete list of shares 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 portfolio. When Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing the trade alert before executing the trade.