Jim Cramer’s top 10 things to watch in the stock market Tuesday
My top 10 things to watch for Tuesday, May 19 1. Stock futures are lower this morning. Higher bond yields pose a challenge for stocks, something I’ve been warning about for weeks. Low rates are oxygen for stock rallies. President Donald Trump said last night that he canceled the plan to attack Iran at the request of some regional leaders in the Middle East. 2. The problem with oil these days: When Trump says there is a peace signal, it falls less, and when there are rumors of war, it rises much more. All these carrot-without-stick truces are causing prices to rise even further. If there is no peace agreement soon, oil could return to $119 from today’s $108. So, could the inflation-sensitive 10-year Treasury bond yield reach 5.5%? This morning it is at 4.62%. 3. Club name Home Depot reported mostly first-quarter results this morning. Full year guidance reiterated. Nothing good, nothing bad. The stock is doing terrible because mortgage rates are not cooperating and are keeping the housing market stagnant. This needs lower rates to go higher. Period. We will have a full analysis of the quarter following management’s conference call with investors. 4. Intel CEO Lip-Bu Tan told me on “Mad Money” last night that the foundry business is gaining momentum. Tan did not comment directly on reports that Intel had signed a manufacturing deal with Apple, but said production quality had improved to the point of serious interest from external customers. It is the key to both return and US national security. The progress Tan has made in 14 months at Intel is remarkable. 5. HSBC raised its price target on Nvidia to $325 from $295 ahead of tomorrow night’s earnings report. I maintained my buy rating. HSBC believes earnings momentum and a great product roadmap are now less meaningful narratives. Analysts have argued that further diversifying revenue from the cloud service provider’s customer base could help unlock shares. 6. Broadcom’s price target increased to $582 from $490 on Evercore; analysts say this is a pioneer in bringing optical networking technology closer to the chip (optics packaged together). We have Broadcom primarily for its custom chip business, but networking is also a major driver. Corning is our main mover in optics for the Club. Evercore also increased its PT in Broadcom rival Marvell to $155 from $133. 7. Fascinating headline: Private equity giant Blackstone and Club name Google are teaming up to launch a new AI cloud company that runs on Google’s Tensor Processing Units (TPUs), The Wall Street Journal reports. Broadcom co-designs TPUs. Shares of Blackstone and Google aren’t moving much, but so-called neoclouds like CoreWeave and Nebius are in decline. This is a move into their territory. 8. Mizuho raised Micron’s PT from $740 to $800, citing pricing afterwinds as memory supply remains tight in 2027 thanks to AI. I’ll say it again: Micron is the one to buy in the event of a pullback. Shares are down more than 2% this morning and were down nearly 6% yesterday following comments from Seagate’s CEO about the pace of new capacity expansion. 9. Goldman Sachs raises its price target on high-end homeowner Ventas to $110 from $100; This indicates an increase of approximately 25% compared to yesterday’s close. I maintained my buy rating. The aging US population is a structural factor here. CEO Debra Cafaro joined me on “Mad Money” last month, where she described how Ventas uses its financial muscle to act as a consolidator. He said senior housing starts are also at historic lows. 10. Bank of America raised its price target on rail operator CSX to $51 from $49. Analysts see further upside after the board authorized a $5 billion share buyback for about 6% of outstanding shares. This matches the largest in the company’s history. CSX is the type of stock that wins when the economy gains momentum. 4 more things on my radar 11. Here’s a loser that could turn into a winner: StubHub. Guggenheim upgraded the ticket market from hold to buy and raised its price target to $12.50 from $8.50. Analysts pointed out that headwinds such as this summer’s World Cup and comfortable compositions in the fourth quarter were the basis for this call. Shares were up about 5% premarket, but have had a rough ride since the September IPO. It closed yesterday down 31% so far. 12. Yesterday afternoon we added a new company to the Club portfolio and called it from our Bullpen watchlist. You can read our origin story, where we discuss ownership, here. We like to start small with our new positions and scale over time. 13. A few more Club stories were published for Club members yesterday: We explained our reasoning behind our “own, don’t trade” mantra for Nvidia and why it’s not too late to start a position at the leading AI chip maker. We also increased our price targets for our cybersecurity stocks. Barclays increased its PT on CrowdStrike from $550 to $650 this morning. 14. Elon Musk’s SpaceX is preparing to launch a new version of its reusable Starship rocket this week, less than a month after its anticipated IPO. While club name Linde is poised to be the winner of this deal as one of SpaceX’s main gas suppliers, I worry that all these mega IPOs could be a problem for the broader market. 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. 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