My top 8 things to watch Friday, Jan. 27
1. Intel (INTC) catches multiple price target cuts on Wall Street after missing estimates with fourth-quarter earnings and revenue. Guidance was weak, too. Shares drop 10% early Friday, pressuring Nasdaq stocks into the open. CEO Pat Gelsinger is very nice, but what is going on here? How could Intel have fallen so far behind? Historic collapse for this one-time chip industry leader.
2. Piper Sandler raises On Semiconductor (ON) price target to $85 per share from $75; keeps overweight (buy) rating. Analysts predict a bottom in chips in the middle of the year. The stock early Friday is caught in Intel's downdraft and so are our Club semis Advanced Micro Devices (AMD), Nvidia (NVDA) and Qualcomm (QCOM).
3. While the Nasdaq, S&P 500 and Dow Jones Industrial Average are set to open lower, all three stock benchmarks are heading for another positive week. But we know that what happens early can change by the close. So, we track the whole session for Club members from the "Morning Meeting" livestream at 10:20 a.m. ET to the final hour with the "Homestretch."
4. Salesforce (CRM) confirms a shakeup to its board of directors, welcome news for a Club holding facing slowing growth, leadership turnover, layoffs and intensifying pressure from activists. I don't see this being the last change because these moves were in the works prior to a big investor taking a stake.
5. Dow stocks American Express (AXP) and Visa (V) move higher. Especially, Amex up more than 5%, after delivering strong guidance and raising its dividend by 15%. Investors look past the credit card giant's fourth-quarter earnings and revenue misses. Visa, on the other hand, delivers quarterly top- and bottom-line beats. MasterCard (MA) also posts a strong quarter.
6. Two days after announcing a massive $75 billion buyback plan, Chevron (CVX) posts a record $36.5 billion profit for 2022. Double the prior year. But a big fourth-quarter miss on earnings-per-share but a beat on revenue. The Club's oil stocks are Coterra Energy (CTRA), Devon Energy (DVN), Halliburton (HAL) and Pioneer Natural Resources (PXD).
7. Barclays boosts Abbott Laboratories (ABT) price target to $125 per share from $122. Analysts see better improvement in medical devices and diabetes. In pharma, we like and own Eli Lilly (LLY) for its new diabetes drug that could soon get approval to fight obesity. That regulatory green light on weight loss could pave the way for the drug to be the best-selling of all time.
8. Hasbro (HAS) shares sink after the toymaker cuts 1,000 jobs, or 15% of its workforce, announces the departure of COO, and warns of weak holiday-quarter results. UBS cuts price target to $90 per share from $110; keeps buy rating.
(Jim Cramer's Charitable Trust is long AMD, NVDA, QCOM, CRM, CTRAM DVN, HAL, PXD, LLY. See here for a full list of the stocks.)
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