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What Cramer is watching Monday — BofA nice beat and my informal poll says people hate the market

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What I am looking at Monday, Oct. 17, 2022 Bank of America (BAC) is amazing. Balance sheet looks really good. Beat estimates: earnings per shares of 81 cents in the third-quarter on revenue of $24.61 billion. Strong fixed-income trading and gains in interest income. BofA shares up nearly 3% in the premarket, pulling other major banks higher, including Club holdings Wells Fargo (WFC) and Morgan Stanley (MS). Both reported Friday. Wells Fargo beat. Morgan Stanley missed. WFC price target hikes at BMO Capital and Piper Sandler. They hate the market. That’s the reaction from dozens of people I spoke to in Philadelphia this weekend. It’s ABS, Anything But Stocks. After a rough session Friday and its fourth straight weekly decline, S & P 500 futures rise in Monday’s premarket. Last week, in the Club’s October “Monthly Meeting,” we talked about how tough it is to time the market and provided a rapid-fire update on all 34 stocks in our portfolio. Blair likes ON Semiconductor (ON), starts with an outperform (buy). Auto semi. Last man standing. The Club has been reducing exposure to the chipmakers. As promised last week once we were not restricted, we’re selling shares of Advanced Micro Devices (AMD) and bringing the holding down to about a 1% weighting in the portfolio from 1.6% JPMorgan says buy Club holding TJX Companies (TJX), which owns T.J. Maxx, Marshall’s and HomeGoods brands. Top 10. Time to buy off-price retailer. Club holding Apple (AAPL) best to own in recession, says Evercore. Tactical time. Loop Capital downgrades FOX (FOXA) to hold from buy. Media so hated. Reports say Rupert Murdoch is thinking about bringing News Corporation (NWS) and Fox back together. This group rivals the semis for hatred. Fox shares down 6% in the premarket. In the Club, we down Disney (DIS) up 1% after more than 2% drop Friday. Morgan Stanley upgrades Clorox (CLX) to equal weight from underweight (hold from sell). In consumer staples, we own Procter & Gamble (PG), which issues earnings this wee k. Fellow Club holdings Johnson & Johnson (JNJ) and Danaher (DHR) also report this week. Citi lowers price target on American Airlines (AAL) to $15 per share from $16. Mizuho cuts price target on Dow Inc. (DOW) to $46 per share from $62, pricing is falling apart. Slowing demand around the globe. Europe cited as being soft. LyondellBasell (LYB) same. These will become tailwinds, like with PepsiCo (PEP). Not yet. Deutsche Bank downgrades XPO Logistics (XPO) to hold from buy. Important because this is last-mile logistics, like Amazon (AMZN). So that’s worrisome. Baird says be careful when it comes to Tractor Supply (TSCO) because of muted weather. We’re misjudging the impact of hurricane season on fresh veggies. Ian hurt lots of crops, not just oranges. Orange juice futures were already on the rise when Ian hit in late September. Prices are now back to early October levels, which were around six-year highs. RBC Capital cut price target on Datadog (DDOG) to $105 per share from $125, getting more conservative. Activist investor group Starboard, according to The Wall Street Journal, takes a nearly 5% stake in data solutions provide Splunk (SPLK). The stock soars about 9% in the premarket. Welcomed. (Jim Cramer’s Charitable Trust is long WFC, MS, TJX, AAPL, DIS, PG, JNJ and DHR. 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. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Brendan McDermid | Reuters

What I am looking at Monday, Oct. 17, 2022

Bank of AmericaWells FargoMorgan StanleyThey hate the market. That’s the reaction from dozens of people I spoke to in Philadelphia this weekend. It’s ABS, Anything But Stocks. After a rough session Friday and its fourth straight weekly decline, S&P 500 futures rise in Monday’s premarket. Last week, in the Club’s October “Monthly Meeting,” we talked about how tough it is to time the market and provided a rapid-fire update on all 34 stocks in our portfolio.

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