Fed Day, Crypto Hearings, Nvidia

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My top 10 things to watch Wednesday, December 14, 2022 1. U.S. stock futures point to a relatively flat open, as Wall Street waits to see what the Federal Reserve will do with interest rates Wednesday afternoon at the end of its December meeting. The market expects a smaller rate hike of 50 basis points after four consecutive increases of 75 basis points. Tuesday’s colder-than-expected consumer price index reading gives investors hope that inflation has really turned the corner. 2. Cryptocurrency exchange Binance has “stabilized” and deposits are “coming back”, says CEO Changpeng Zhao. There have been many withdrawals in the digital coin industry after the collapse of the FTX exchange and the arrest of its founder, Sam Bankman-Fried, for fraud. A day after the House Financial Services Committee’s crypto hearing, it’s the turn of the Senate Banking Committee on Wednesday. 3. Shares of Delta (DAL) rise in the pre-market after the airline raised its estimates on earnings per share (EPS) for the fourth quarter and full year. Delta sees EPS of $1.35 to $1.40 vs. $1 to $1.15 expected. EPS forecasts for the year 2022: $3.07 to $3.12 vs. $2.89 expected. In contrast, JetBlue (JBLU) says it expects fourth-quarter revenue per available seat mile to be at the lower end of its previous guidance range. 4. Deutsche Bank raises its price target on Club holding Nvidia (NVDA) to $170 per share from $150; maintain the rating. Like everyone else, I’m waiting for the glut of video game chip inventory to dissipate. 5. Deutsche Bank initiates coverage of Club holding Danaher (DHR) with a buy rating and price target of $310 per share. Analysts also initiated coverage on 9 other life science companies, including Thermo Fisher Scientific (TMO) with a buy and price target of $620. 6. Argus Research and Deutsche Bank raise price targets for beer maker Corona Constellation Brands (STZ) to $295 per share from $270 and $249 from $244, respectively. Argus retains STZ as a buy. Deutsche Bank keeps a stranglehold on STZ. 7. Goldman Sachs cuts its price target on Tesla (TSLA) to $235 per share from $305, but retains a buy rating. Analysts there have slashed earnings per share estimates for fiscal year 2023. Meanwhile, there’s also a Wall Street Journal report on TSLA investors expressing concern over Elon Musk’s focus on Twitter. 8. Jefferies raises its price target on Netflix (NFLX) to $310 per share from $250; maintain the rating. Analysts cite the streaming service’s password crackdown and new level of advertising as catalysts. 9. Wells Fargo raises its price target on Goldman Sachs (GS) to $400 per share from $380; maintains an overweight (buy) rating. Analysts there cut fourth-quarter EPS estimates, but left estimates for 2023 and 2024 alone. 10. In a note, Morgan Stanley says it’s not worried about competition for Apple’s App Store (AAPL). Meanwhile, UBS says wait times for new iPhones are improving. (Jim Cramer’s Charitable Trust is long NVDA, DHR, STZ and AAPL. See here for a full list of stocks.) As a CNBC Investing Club subscriber with Jim Cramer, you’ll receive a trade alert before Jim makes a transaction. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS, OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS GUARANTEED. My top 10 things to watch for Wednesday, December 14, 2022

1. U.S. stock futures point to a relatively flat open as Wall Street waits to see what the Federal Reserve will do with interest rates Wednesday afternoon at the end of its December meeting. The market expects a smaller rate hike of 50 basis points after four consecutive increases of 75 basis points. Tuesday’s colder-than-expected consumer price index reading gives investors hope that inflation has really turned the corner.

2. Cryptocurrency exchange Binance has “stabilized” and deposits are “coming back”, says CEO Changpeng Zhao. There have been many withdrawals in the digital coin industry after the collapse of the FTX exchange and the arrest of its founder, Sam Bankman-Fried, for fraud. A day after the House Financial Services Committee’s crypto hearing, it’s the turn of the Senate Banking Committee on Wednesday.

3. Shares of Delta (DAL) rise in the pre-market after the airline raised its estimates on earnings per share (EPS) for the fourth quarter and full year. Delta sees EPS of $1.35 to $1.40 vs. $1 to $1.15 expected. EPS forecasts for the year 2022: $3.07 to $3.12 vs. $2.89 expected. In contrast, JetBlue (JBLU) says it expects fourth-quarter revenue per available seat mile to be at the lower end of its previous guidance range.

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