Jim Cramer’s top 10 things to watch in the market Thursday: Strong job market as Amazon cuts staff

US Top News and Analysis

My top 10 things to watch Thursday, Jan. 5, 2023 1. U.S. stock futures accelerate to the downside as bond yields reverse higher. Soon-to-be retiring St. Louis Federal Reserve President Esther George advocated Thursday on CNBC for higher interest rates. Fed minutes Wednesday also held fast to tightening as of its last meeting. The job market is still too strong. ADP private payrolls in December: 253,000 versus 153,000 expected. Pay increases for job changers 15.2%. Job-stayers get 7.3%. 2. Amazon (AMZN) lays off 18,000, more than expected. But you must be kidding me. You add 300,000 to payrolls during Covid and you only reduce your workforce of more than 1.5 million by 18,000. These cuts are just beginning and not big enough. 3. Struggling Bed Bath & Beyond (BBBY) shares sink 17% in premarket trading to under $2 each after the company warned of deeper financial troubles, saying there’s “substantial doubt” about whether Bed Bath & Beyond can continue as a going concern. All strategic alternatives on the table. 4. Silvergate Capital (SI) shares plunge 40% in the premarket after the crypto bank cuts staff by 40%, about 200 employees. The denouement of crypto continues. Sells $700 million of debt. They had $8.1 billion in withdrawals. FTX was $1 billion of their deposits. 5. Micron Technology (MU) ran higher Wednesday on a story that China may scale back semiconductor production. Our chipmakers, including Nvidia (NVDA), also caught a bid. This is not right for Micron, because its problems are all about Samsung and its relentless creation of DRAMs, driving down the price and continuing the inventory glut. 6. Meta Platforms (META) price-target raised to $170 per share from $160 at Mizuho; keeps a buy rating. the Club holding is a low-multiple stock that is working despite the big $400 million fine in Europe. 7. U.S. oil prices are making a stand in the mid $70s, as we have been predicting. While we still expect WTI to dip below $70-per-barrel at some point, energy stocks aren’t saying that. We added to Pioneer Natural Resources (PXD) Wednesday. 8. Credit Suisse downgrades Club holding Danaher (DHR) to neutral from outperform (hold from buy). The life sciences and medical diagnostics company is doing so much to help its share price that I find this downgrade curious. 9. Barclays raises Starbucks (SBUX) price target to $121 per share from $105; keeps an overweight (buy) rating. Analysts cite a “dominant US retail & consumer product platform, significant international growth led by China, and a best-in-class digital platform.” 10. Piper Sandler cuts price target on Cyberark Software (CYBR) to $160 per share from $190, suggesting more room to drop. Just a few Piper likes, including Club Bullpen stock Palo Alto Networks (PANW). (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.

My top 10 things to watch Thursday, Jan. 5, 2023

1. U.S. stock futures accelerate to the downside as bond yields reverse higher. Soon-to-be retiring St. Louis Federal Reserve President Esther George advocated Thursday on CNBC for higher interest rates. Fed minutes Wednesday also held fast to tightening as of its last meeting. The job market is still too strong. ADP private payrolls in December: 253,000 versus 153,000 expected. Pay increases for job changers 15.2%. Job-stayers get 7.3%.

2. Amazon (AMZN) lays off 18,000, more than expected. But you must be kidding me. You add 300,000 to payrolls during Covid and you only reduce your workforce of more than 1.5 million by 18,000. These cuts are just beginning and not big enough.