My top 10 things to watch Monday, Feb. 27
1. The Dow, the S&P 500 and the Nasdaq look to bounce Monday after their worst week of 2023. Despite the 2-year Treasury yield hitting July 2007 highs, stocks held onto gains ahead of the open. The strong rally that started the year has been dwindling, with the Dow now negative year to date. The S&P 500 and Nasdaq were still up nearly 3.5% and nearly 9% in 2023. Is bitcoin the best example right now of overexuberance? It’s barely come down.
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2. Investors get a slight reprieve in the week ahead from the hard-hitting inflation data of the past two as Wall Street gets ready to close the books on what’s been a pretty dismal February. Club holdings Salesforce (CRM) and Costco (COST) are out with earnings this week. I’m hearing there’s a “good chance” Salesforce co-founder and CEO Marc Benioff, under activist investor pressure, will soon announce succession plans.
3. Price of wheat collapsing because of a Russian bumper crop. Very good for inflation as food inflation has been really sticky. So has wages and housing. The Wall Street Journal reports apartment growth is starting to put pressure on rents. It does not show up in government data. Perhaps, a positive in getting shelter costs down.
4. It was amazing to see everyone who came out for Saturday’s first-ever “Annual Meeting” of the Club in New York City. We live-streamed the event and you can watch the replay video here. One of the things we talked about was the first thing you must do before you buy a single stock. It’s to figure out your worldview. Here’s mine and how to think about developing your own.
5. Time to buy more semis? The group is trying to bottom off of Nvidia‘s (NVDA) call and strong move last week. Our other Club chipmakers are Advanced Micro Devices (AMD) and Qualcomm (QCOM).
6. Morgan Stanley boosts Crowdstrike (CRWD) price target to $150 per share from $135; keeps overweight (buy) rating. In the cybersecurity sector, we like and own Palo Alto Networks (PANW) for the Club.
7. Barclays says Tesla‘s (TSLA) analyst meeting on Wednesday might be a sell-the-news event. Shares of the Elon Musk EV-maker have gained 60% year to date after a terrible 2022; but still down nearly 50% from their 52-week high back in April.
8. Twitter, Musk’s latest project, cut another 10% of the company’s already severely reduced workforce, according to The New York Times.
9. Will Pfizer (PFE) buy Seagen (SGEN)? WSJ says the companies are in early talks. Seagen shares soar 12% early Monday. It would be a very expensive deal. But at the same time, it would help Pfizer long-term as it would add to its cancer treatments.
10. Berkshire Hathaway (BRK.a) disappointing operating results so Warren Buffett dwells on the power of buybacks. Affront to Democratic Sen. Elizabeth Warren from Massachusetts. Buffett talks about Coca-Cola (KO) and American Express (AXP) and how old investments have generated a lot of money. Talks about the U.S. tailwind.
(Jim Cramer’s Charitable Trust is long CRM, COST, NVDA, AMD, QCOM, PANW. 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.