My top 10 things to watch Monday, Feb. 6
1. Goldman Sachs’ David Kostin offers conventional, well-loved wisdom: the Fed engineers soft landing and it’s already priced into the market. So sell stocks and buy short paper for the high yields because that will work? Seems like it … at least to start the week. The Dow, the S&P 500 and the Nasdaq on Monday are tracking to add to Friday’s strong jobs-driven decline.
2. Credit Suisse raises Estee Lauder (EL) price target to $305 per share from $215. This is a catch-up call on this Club name, which has been climbing steadily since November. Most recently, supported by China ditching zero-Covid and reopening its economy. Here’s a rapid-fire update on all 34 stocks in my Charitable Trust. Plus, my blueprint for changing your mindset for this new bull market.
3. JPMorgan raises price target on Club stock TJX Companies (TJX) to $95 per share from $90; keeps overweight (buy) rating on the off-price retailer behind T.J. Maxx, Marshalls, and HomeGoods. Analysts at JPMorgan make similar moves on TJX rival Burlington Stores (BURL).
4. Raymond James downgrades Coterra Energy (CTRA) to market perform from outperform (hold from buy). Analysts see strong balance sheet but cite drag from collapse in natural gas, which accounts for about 50% of the Club holding’s business.
5. Bernstein upgrades Diageo (DEO) to outperform from market perform (buy from hold) and raises price target to $225 per share from $215. Analysts see compelling value, great momentum for the company behind such brands as Johnnie Walker whiskey, Ketel One vodka and Guinness beer. For the Club, we like and own Mexican beer powerhouse Constellation Brands (STZ).
6. Barclays lowers Clorox (CLX) price target by $2 per share to $110; keeps underweight (sell) rating. Analysts still hate it, even after a good quarter. In consumer staples, we own Procter & Gamble (PG). It’s always good to have a recession-resistant stock in a diversified portfolio.
7. Dell Technologies (DELL) to cut 6,650 jobs, reflecting the struggles in personal computers. Rival HP Inc.(HPQ) has also announced as many as 6,000 job cuts.
8. Public Storage (PSA) launches an $11 billion bid to rival Life Storage (LSI). The offer puts a nearly 8% premium on Friday’s LSI close, which is being reflected in early Monday trading.
9. Baird raises price target on Regeneron (REGN) to $756 per share from $670; keeps neutral hold rating. Dupixent doing well. Wonder drug? Treats eczema and asthma. Canaccord PT to $853 from $750; keeps buy. RBC Capital lowers PT to $787 from $789; keeps sector perform (hold) rating.
10. T-Mobile (TMUS) downgraded by MoffettNathanson to market perform from outperform (hold from buy); keeps $174-per-share price target. Surprising downgrade because analysts there have loved it.
(Jim Cramer’s Charitable Trust is long EL, TJX, CTRA, STZ, PG. See here for a full list of the stocks.)
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.