My Top 10 Things to Watch Wednesday, April 1st 1. After yesterday’s torrid rally on hopes of a resolution to the Iran war, we expect another strong session on Wall Street this morning. Yesterday’s stock and bond movements were a preview of what might happen if the conflict really ends. The March ADP report released this morning was stronger than expected. Positive signal for the job market ahead of Friday’s non-farm payrolls report. 2. I was very disappointed in the club name Nike. It beat total sales and profits in the quarter, but still issued weak guidance. Inventory issues still persist. Growth in North America also took a step back. Is it still a good idea to stick to the fall Investor Day? It’s going to get worse before it gets better. Has the competition caught up? Goldman, JPMorgan, and Bank of America all downgraded their ratings. 3. Rocky turnaround at RH. The luxury home furnishings maker missed any of its key metrics in its fiscal fourth quarter, and its outlook for the current quarter was negative. Tariffs were a drag. The housing market continues to be difficult. The stock is down 18% this morning. At least the full-year cash flow guidance was much better. 4. Wells Fargo raised Arm’s price target from $165 to $175. Analysts are positive that Arm will enter the data center CPU market with its first in-house silicon product. They reiterated their Buy rating. This will only get better and better as it competes with Intel and AMD in the data center. As CEO Rene Haas told me on Monday, this is a new Arm. 5. Evercore adds Modelo brewery Constellation Brands to its strategic buy list. This stock has been a tough one to own for years, but I like incoming CEO Nick Fink. I think he can turn things around. The beer is selling well and the name is becoming more and more popular on the street. Citi upgraded it last month. 6. Boeing Love: Wells Fargo started the stock as a buy with a price target of $250, which suggests an upside of more than 25% from yesterday’s closing price. Analysts are praising Boeing for its free cash flow recovery as the aircraft maker’s production normalizes. FCF’s story and overall turnaround under CEO Kelly Ortberg is a key reason we hired Boeing for our club. 7. Wells Fargo lowered Rockwell Automation’s price target from $410 to $360. Analysts are wary of a new wave of orders for the group until the macro environment becomes clearer in the wake of the Iran-US war. We often see this type of inquiry from industry. Wells reduced the price of the club’s name, Eaton, from $370 to $350 for the same reason. 8. KeyBanc sees positive demand signals in Atlassian, but lowered its price target to $130 from $170 anyway. This is the new reality for many Software-as-a-Service stocks thanks to the AI disruption overhang. The numbers can still come through, but the market isn’t willing to pay a premium like it used to. 9. Edwards Lifesciences was upgraded from holdover to buyout of Wolfe Research. Analysts said Edwards was positioned to gain share in the important TAVR cardiac value replacement market due to competitor Medtronic’s “data failure” in February. This stock has been a total dog for years. 10. Sempra has been added to Wells Fargo’s list of tactical ideas. This has long been one of my favorite growing utilities because of its exposure in Texas and California. Sempra is in the process of selling a majority stake in its infrastructure business in order to simplify its business and focus on its core. Best utilities to buy here. Sign up for free for my Top 10 Morning Thoughts on the Markets email newsletter (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you’ll receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
