My Top 10 Things to Watch Wednesday, April 22nd 1. Stocks are trending higher following consecutive declines in the S&P 500 and Nasdaq. After the deal closed yesterday, President Donald Trump extended the Iran ceasefire. With the war in a holding pattern, investors are looking to solid numbers for Dow stock and club name Boeing, which soared more than 3.5% this morning. 2. Boeing’s first quarter numbers look very good. Sales and bottom line performance are strong, with record backlog levels across the commercial, defense and services sectors. Free cash flow was still negative in the first quarter, but significantly improved compared to a year ago. Certification of the 737 Max 7 and Max 10 is still expected this year. A positive step toward CEO Kelly Ortberg’s turnaround. 3. GE Vernova had a complete disaster in the first quarter and raised its earnings outlook. The club’s share price has soared nearly 8% since the print. With the creation of AI infrastructure, natural gas turbines will essentially be sold out until 2028. The division that sells transformers and other power grid equipment is also booming with data center support, with more orders in the first quarter than all of last year. AI requires power and GEV owns the power layer. 4. Capital One missed out on revenue and revenue in a tumultuous quarter, including large one-time amortization and integration costs related to its Discover acquisition. However, Barclays raised its price target on the club’s shares from $225 to $250, citing strong creditworthiness but concerns about spending. We lowered our club price target from $270 to $255 to reflect pressure on the credit card group. 5. Alphabet’s Google announced chips for AI training and inference in its latest shot at Nvidia. Google says this change will be made possible with its 8th generation TPUs, which will produce chips specialized for each task. BMO Capital said Alphabet is “one of the best ways to own AI.” The world is running out of computing power, but Nvidia will continue to get its fair share. 6. Elon Musk’s SpaceX announced that it has won the right to acquire AI coding assistant Cursor for $60 billion later this year, or “pay us $10 billion for our cooperation.” Nvidia CEO Jensen Huang calls Cursor his favorite “enterprise AI service.” SpaceX owns both the rocket company and Musk’s xAI, which is powered by the Grok chatbot. A fascinating move by Mr. Musk. 7. JPMorgan’s Apple profit forecast exceeds Wall Street analyst consensus. JPMorgan said in next week’s quarterly release that Apple investors will focus on how the company is weathering the memory crunch and what more information it can glean about John Ternus, who will take over as CEO from Tim Cook on September 1. Apple still “owns it, don’t trade it.” 8. Morgan Stanley downgraded Zscaler from buy to hold and lowered the cybersecurity stock’s price target from $200 to $155. Analysts cite increased competition in secure access service edge (SASE), which is basically a digital security badge. The memo mentions Palo Alto Networks, which we own for the club, along with our favorite cyber name, CrowdStrike. 9. Adobe announces $25 billion long-term stock buyback. Approval is scheduled to expire in April 2030. The company’s stock has soared nearly 3% on the news, but like many other software stocks it has struggled this year due to concerns about AI disruption. Other software companies, including club name Salesforce, are also buying back large amounts of their own struggling stock. 10. Analysts at Wolfe Research said they are not daunted by the discussion of Netflix’s involvement. Analysts argued that Netflix’s core engagement is good and if it stays the same, the streamer could continue to raise prices in the coming years. Wolf also cited Netflix’s continued global expansion as a positive. 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.
