Jim Cramer’s top 10 things to watch in the stock market Monday
My top 10 things to watch on Monday, July 13 1. S&P 500 and Nasdaq futures are pointing to a lower open, pressured by declines in semiconductor stocks. WTI crude rose more than 3% to nearly $74 a barrel after the United States and Iran exchanged strikes over the weekend. At least we are clear of the worst of the morning, with WTI trading as high as $75. 2. Chip weakness on Wall Street is also spreading from Asian markets, where SK Hynix lost 15.4% and Samsung Electronics lost 10.7% in South Korea. This was the first trading day in Korea since SK Hynix listed its American depository receipts on Nasdaq. These ADRs are selling at a decline of more than 10% in the preliminary market. Micron lost about 5% and Sandisk lost 6%. 3. According to TSMC’s June sales, demand for artificial intelligence computing remains out of standards. The world’s largest contract chip maker reported a 68% year-on-year increase in revenue last month. TSMC has limited capacity, and the industry’s desire for a reliable, high-tech alternative is a big reason why we have Intel for the Club. 4. In my column for Investment Club members on Sunday, I explored the dominance of technology stocks in this market and explained why it is so difficult to break away from this group. Yes, we maintain diversity for the Club. But it is impossible to ignore the endless technology narrative. We have a Monthly Meeting for Club members on Thursday at noon ET. Join the club to be there. 5. Citi raised its price target on Apple to $365 from $315 and maintained its buy rating. Recent price increases on Apple’s MacBooks and iPads should offset margin pressures from higher memory prices, leaving a limited impact on demand, analysts said. They said this would make Apple a share winner in a tough market. The stock has been on the rise recently, closing at record highs late last week. I still say yourself, don’t trade this. 6. Meta’s massive data center project in Louisiana is getting bigger; The site will now be a 5 gigawatt facility and cost over $50 billion. This would be enough to power approximately 4 million homes. Initial plans called for a 2GW data center with a price tag of $27 billion. The market rewarded Meta last week for considering its cloud business, just as I predicted. 7. The club’s name was upgraded to Capital One, HSBC to be acquired without waiting. After a 17% year-to-date decline due to macro risks and questions surrounding the Discover integration, analysts argued that “cautiousness is now more than reflected in the share price.” I wish we had sold this much higher before letting a big gain evaporate. But we’re waiting because I think CEO Richard Fairbank will introduce the “new” Capital One soon. 8. Humana upgraded from $227 to $502 for immediate purchase at Wells Fargo. The stock has already more than doubled from its March low. But with Medicare Advantage costs declining, analysts said earnings risk has diminished and margin advancement next year could be meaningful. Managed care stocks have been the only healthcare group with real appeal. 9. Citi raised its price target on Rockwell Automation to $555 from $500. The call was made as part of its earnings preview for industrial sectors, citing headwinds for the group including demand from artificial intelligence and data center build-out. He maintained his buy rating on the shares. We like Club better to keep Honeywell Technologies in this area. 10. Deckers Outdoor has been upgraded to buy from the hold at Jefferies. Analysts said Hoka and Ugg parent company has a “meaningful ability to increase” guidance given its “strong track record.” The new price targets, from $110 to $130, imply an upside of almost 23%. This became a big winner with the launch of Hoka in 2023 and 2024, but since then sledding has become more difficult. Sign up for free for my Top 10 Morning Thoughts on the Market email newsletter (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT GUARANTEE IS MADE.
