1. Big day of earnings for Club holdings as the Dow Jones Industrial Average, the S&P 500 and the Nasdaq look to open lower after back-to-back gains. Three quarterly reports before the bell and Club holding Microsoft (MSFT) after the close.
2. Club holding Johnson & Johnson (JNJ): Beat on fourth-quarter earnings but missed on revenue. J&J remains on track to split into two companies later this year: pharmaceuticals and medical devices as one and consumer brands as the other. In Q4, pharma and MedTech slight miss and consumer beat. Guides higher.
3. Club holding Danaher (DHR) beat on the top and bottom lines in the fourth quarter. The life sciences and medical diagnostics company, beginning in Q1, will exclude Covid testing, vaccines, and therapeutics from what it considers core business.
4. Club holding and oilfield services giant Halliburton (HAL) blew out estimates with earnings-per-share in the fourth quarter. Revenue matched. Operating income: insanely good. Raises dividend. Big beat on free cash flow. Strong forecast.
5. General Electric (GE) beats on EPS and misses on revenue in the fourth quarter. Aerospace great. Free cash flow great. Renewables questionable. Power better. On track to spin off energy unit next year. Completed health care split earlier this month.
6. Bernstein downgraded Advanced Micro Devices (AMD) to market perform from outperform (hold from buy). No margin for error. Bernstein analyst Stacy Rasgon will be wrong. Separately, Bernstein sees fiscal year decline for iPhone demand. Both Apple (AAPL) and AMD are Club holdings.
7. Club holding Nvidia (NVDA): Citi sees generative artificial intelligence ChatGPT as a $5 billion to $11 billion opportunity. Nvidia is the AI chip company. Microsoft just put billions more dollars into OpenAI, the company behind ChatGPT.
8. Justice Department trying it again: going after Alphabet (GOOGL) on monopolistic advertising. I wish the Club holding’s online ad business was that good. Separately, CEO Sundar Pichai defends announced job cuts at a company townhall meeting.
9. Wells Fargo says go nuts on Disney (DIS). CEO Bob Iger will come out swinging. Refocus on content instead of streaming subs. Aggressive cost action. “We like this setup into the print,” analysts add.
10. Club holding Starbucks (SBUX) started as an overweight (buy) at Wells Fargo with a $120-per share price target. Chipotle Mexican Grill (CMG) also a buy; $1,800 PT. McDonald’s (MCD) an equal weight (hold) at Wells Fargo with $280 PT.
(Jim Cramer’s Charitable Trust is long MSFT, JNJ, DHR, HAL, AMD, APPL, NVDA, GOOGL, DIS, SBUX. See here for a full list of the stocks.)
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