Jim Cramer’s top 10 things to watch in the stock market Wednesday

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My top 10 things to watch Wednesday, April 26

1. Waiting for the other shoe to fall, First Republic (FRC), which again, is very deflationary with a per se reduction in borrowing power. We don’t know how good its loan book really is. The stock falls another 12% as bankers pitch to save the troubled regional bank. I don’t see an FRC failure, if one were to happen, as a systemic risk.

2. Club holding Microsoft (MSFT) up 8% after a quarter of excellent Azure cloud reacceleration, better execution, strong business software, good gaming and LinkedIn. Not to mention, lots of use already in AI. Microsoft said it’s still committed to Activision Blizzard (ATVI) acquisition and plans to appeal the U.K.’s top antitrust regulator’s decision to oppose the deal.

3. Club name Alphabet (GOOGL) is unable to hold on to muted after-hour stock gains despite delivering a very strong and disciplined quarter. Surprising inflection in cloud as well as strong advertising and gathering strength in Youtube. Huge buyback. Real belt-tightening. Still work to do but comforting.

4. Both Alphabet and Microsoft make sure people know that they run on H-100 Nvidia (NVDA) graphics cards for AI. Alphabet and Microsoft put Nvidia right at the top of their commentary. At our April Monthly Meeting on Tuesday, we replaced Alphabet in the Club’s 10 core holdings with Nvidia. Also, check out our rapid-fire update on all 35 stocks in the Club portfolio.

5. The Dow, the S&P 500 and the Nasdaq are set to open higher, getting a boost in market sentiment from solid quarters from Microsoft and Alphabet. Club holdings Meta Platforms (META) and Pioneer Natural Resources (PXD) issue their results after the closing bell Wednesday. Four Club names report Thursday morning and Amazon (AMZN) arrives after the bell.

6. Boeing’s (BA) roughly 3.5% gain helps Dow futures. The aircraft maker plans to increase 737 Max production by more than 20% to 38 planes per month, starting later this year. Boeing also plans to boost 787 Dreamliner output. The company reported a wider first-quarter loss but beat estimates on revenue that rose 28% from the year-ago period.

7. Club holding Humana (HUM) up about 1.5% after the health insurer had a mixed first quarter. Adjusted EPS beat: $9.38 versus $9.27 expected. But adjusted revenue missed: $25.65 billion versus $26.65 billion expected. Slightly boosts full-year guidance. Affirms strong 2023 individual Medicare Advantage (MA) membership growth.

8. Deutsche Bank boosts price target on Club stock Apple (AAPL) to $170 per share from $160. Barclays PT goes to $149 from $145. Deutsche Bank has a buy rating and Barclays a hold. Both analysts from research firms expect Apple to match estimates with next week’s release of quarterly results. Strength in iPhones to offset some softness elsewhere.

9. Jefferies cuts Tesla (TSLA) to hold from buy and price target to $185 per share from $230. Cites auto structurally low returns. Reset expectations. Relative price aggression is not supportive of a high price-to-earnings. Results do not demonstrate demand elasticity. Need cost programs.

10. Chipotle Mexican Grill (CMG) gets tons of price target increases on Wall Street, with many of them calling for the stock to top $2,000 per share. CMG up 7.5% after big EPS beat in Q1 and slight revenue beat. Many different things working here from lower food costs to better throughput to higher prices that stick.

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