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What Cramer is watching Friday — Fed plays good cop, bad cop and off-price retailers shine

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What I am looking at Friday, Nov. 18, 2022 U.S. stock futures point to a higher Friday open, one day after a volatile session following St. Louis Fed President James Bullard signaling interest rates may need to go higher than Wall Street had recently come to expect. Then, before the bell Friday, Boston Fed President Susan Collins expressed hope that inflation can be tamed without hitting jobs. It was an uneven week for retail earnings. The strongest were the trade downs. Barclays raises price target on Club holding TJX Companies (TJX) to $94 per share from $76 and keeps its overweight (buy) rating after a solid quarter for the off-price retailer. Rival Ross Stores (ROST) gets multiple price target increases. Citi raises BJ’s Wholesale (BJ) price target to $83 per share from $81 after earnings beat. Analysts there keep a neutral rating. The Club likes Costco (COST) — and based on the mixed retail earnings picture, we think it’s the best of the bunch. Citi says Gap (GPS) is not out of the woods. I am not sure of that yet. Shares of the apparel retailer jump 8% in the premarket after an unexpected profit and better-than-expected sales. Foot Locker (FL) right out of the chute with a better quarter. Shares rise 12%. Citi raises Macy’s (M) price target to $25 per share $21. Better than guidance and new range seems achievable. Deutsche Bank cuts Macy’s PT by $1 per share to $24. Multiple price target raises on Club Bullpen name Palo Alto Networks (PANW). The cybersecurity company is by far the best in show. Barclays takes Salesforce (CRM) down to $190 per share from $202. Can I say this is a ridiculous, unachievable target? Shares closed Thursday at nearly $150 each. Citi cuts HP Inc. (HPQ) price target to $31 per share from $33. PCs getting weaker. PTs also lowered at Bank of America and Credit Suisse. Citi also cuts PT on Dell (DELL) to $55 from $60. Bank of America downgrades Coinbase (COIN); Mizuho says COIN is losing share. Should you be concerned about this company? BofA raises several new worries. UBS upgrades Conagra Brands (CAG) to buy from neutral, says the food company is in the early innings of a positive estimate cycle, raising estimates. Enterprise cloud platform Workday (WDAY) price target cut to $198 per share from $208 at Barclays. Analysts there are worried about cycle. Taking on too much risk to own it. JD.com (JD) higher earnings and revenue, helped by shutdowns. Looks like the Chinese have brought pretty much everyone back. Barclays raises Applied Materials (AMAT) price target to $90 per share $80 but keeps neutral rating. Bullish quarter. The semiconductor equipment maker forecasts a down year for wafer equipment but believes its business is more resilient. Despite weak customer demand, they got stronger orders. Baird cuts Zoom Video (ZM) price target to $100 per share from $125. Why so high? The stock closed Thursday at $82 and change. Barclays lowers Splunk (SPLK) to $100 per share from $105. I wonder if this company is for sale. Barclays also cuts Snowflake (SNOW) to $200 from $207. Piper Sandler starts DraftKings (DKNG) with an overweight (buy) rating and a $21-per-share price target, which implies about 40% upside from Thursday’s close. (Jim Cramer’s Charitable Trust is long TJX, COST and CRM. 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.

The clearance rack at T.J. Maxx clothing store in Annapolis, Maryland, on May 16, 2022, as Americans brace for summer sticker shock as inflation continues to grow.
Jim Watson | AFP | Getty Images

What I am looking at Friday, Nov. 18, 2022

  • U.S. stock futures point to a higher Friday open, one day after a volatile session following St. Louis Fed President James Bullard signaling interest rates may need to go higher than Wall Street had recently come to expect. Then, before the bell Friday, Boston Fed President Susan Collins expressed hope that inflation can be tamed without hitting jobs. It was an uneven week for retail earnings. The strongest were the trade downs.
  • Barclays raises price target on Club holding TJX CompaniesRoss Stores

Stocks making the biggest moves premarket: Foot Locker, JD.com, Gap and others

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