Top 10 Things to Watch Monday, March 20 1. Wall Street looks stable at the start of the week and ahead of the Fed’s post-meeting Wednesday afternoon rate decision. The market is betting about 60% odds of a quarter point hike and 40% chance of no hike as policymakers watch the unfolding bank battles. Here are the two Fed scenarios that we prefer. The Dow, S&P 500 and Nasdaq all see the open relatively flat. Sign up for my free Top 10 Morning Market Thoughts email newsletter. 2. In a sign of encouragement, sentiment in European markets improved throughout the morning and stocks rebounded from their early lows. European banks are under pressure after UBS (UBS) agreed to take over its ailing rival Credit Suisse (CS) for $3.2 billion, a deal facilitated by Swiss authorities and regulators. On Sunday, the Fed and other central banks set out a joint liquidity operation. 3. The Mid-Size Bank Coalition of America asked regulators to extend Federal Deposit Insurance Corporation (FDIC) coverage to all deposits for two years. Why the FDIC doesn’t insure all deposits is beyond us. We consider it necessary to break down this confidence in the crisis. 4. If you want to try the still very insecure regional banks, you still have to make a decision. First Republic (FRC) shares are lower premarket after S&P downgraded its credit rating to B+ from BB+. New York Community Bancorp (NYCB) was upgraded to an outperform (buy) rating on Wedbush and KBW. NYCB bought most of the failed Signature Bank’s deposits and loans from the FDIC. 5. PepsiCo (PEP) was upgraded to Market perform by Bernstein from Underperform (Hold Sell). Analysts admit they were wrong about the drinks and snacks company, citing category growth that has surprised on the upside over the past two years. 6. Nvidia (NVDA) price target has been raised from $230 at Baird to $300 per share ahead of this week’s GTC developer event. It’s a bit of a confusing note because analysts include NVDA in the Fresh Pick Bullish list on data center dynamics for the second half of the year, but remain neutral (Hold) on concerns over GPU inventory and data center valuation in China. 7. Carnival (CCL) named a Catalyst Call Buy Idea at Deutsche Bank. The catalyst event is the cruise line’s March 27 earnings report, which analysts believe will spark a positive reaction in the stock on weak sentiment and a low bar on the full-year outlook. 8. According to Club Holding Starbucks (SBUX), Laxman Narasimhan will take over as CEO on Monday, about two weeks earlier than expected. Narasimhan replaces Howard Schultz, who is ending his third term as the coffee giant’s CEO. 9. Dow Inc. (DOW) and LyondellBasell (LYB) are both upgraded to buy at Deutsche Bank. 10. Deutsche Bank is shaking its price targets and ratings of US consumer companies, upgrading Kimberly-Clark (KMB) and Conagra (CAG) to hold from sell, but lowering price targets for many in its coverage universe due to higher discount rates. Club Holdings Procter & Gamble (PG) remains a buy and Constellation Brands (STZ) remains a hold position. (See a full list of Jim Cramer’s Charitable Trust stocks here.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling any stock in his charitable foundation’s portfolio. When Jim spoke about a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS GOVERNED BY OUR TERMS AND CONDITIONS AND PRIVACY POLICY ALONG WITH OUR DISCLAIMER. NO OBLIGATION OR OBLIGATION SHALL BE OR CREATED BY YOUR RECEIVING OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.
Top 10 things to see on Monday March 20th
1. Wall Street looks stable at the start of the week and ahead of the Fed’s rate decision Wednesday afternoon after the meeting. The market is betting about 60% odds of a quarter point hike and 40% chance of no hike as policymakers watch the unfolding bank battles. Here are the two Fed scenarios that we prefer. The Dow, S&P 500 and Nasdaq all see the open relatively flat.
Sign up for my free Top 10 Morning Thoughts on the Market email newsletter
2. In a sign of encouragement, sentiment in European markets improved throughout the morning as stocks bounced off their early lows. European banks are under pressure after UBS (UBS) agreed to take over its ailing rival Credit Suisse (CS) for $3.2 billion, a deal facilitated by Swiss authorities and regulators. On Sunday, the Fed and other central banks set out a joint liquidity operation.
3. The Mid-Size Bank Coalition of America asked regulators to extend Federal Deposit Insurance Corporation (FDIC) coverage to all deposits for two years. Why the FDIC doesn’t insure all deposits is beyond us. We consider it necessary to break down this confidence in the crisis.
4. If you want to try the still very uncertain regional banks, you still have to make a decision. First Republic (FRC) shares are lower premarket after S&P downgraded its credit rating to B+ from BB+. New York Community Bancorp (NYCB) was upgraded to an outperform (buy) rating on Wedbush and KBW. NYCB bought most of the failed Signature Bank’s deposits and loans from the FDIC.
5. PepsiCo (PEP) was upgraded to Market perform by Bernstein from Underperform (hold Sell). Analysts admit they were wrong about the drinks and snacks company, citing category growth that has surprised on the upside over the past two years.
6. Nvidia (NVDA) price target has been raised to $300 per share from Baird’s $230 per share ahead of this week’s GTC developer event. It’s a bit of a confusing note because analysts include NVDA in the Fresh Pick Bullish list on data center dynamics for the second half of the year, but remain neutral (Hold) on concerns over GPU inventory and data center valuation in China.
7. Carnival (CCL) named a Catalyst Call Buy Idea at Deutsche Bank. The catalyst event is the cruise line’s March 27 earnings report, which analysts believe will spark a positive reaction in the stock on weak sentiment and a low bar on the full-year outlook.
8th. According to club holding company Starbucks (SBUX), Laxman Narasimhan will take over as CEO on Monday, about two weeks earlier than expected. Narasimhan replaces Howard Schultz, who is ending his third term as the coffee giant’s CEO.
9. Dow Inc. (DOW) and LyondellBasell (LYB) are both upgraded to buy at Deutsche Bank.
10 Deutsche Bank is changing its price targets and ratings of US consumer companies, upgrading Kimberly-Clark (KMB) and Conagra (CAG) to hold from sell, but lowering price targets for many in its coverage universe due to higher discount rates . Club Holdings Procter & Gamble (PG) remains a buy and Constellation Brands (STZ) remains a hold position.
(For a full list of Jim Cramer’s Charitable Trust stocks, click here.)
As a CNBC Investing Club subscriber 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 any stock in his charitable foundation’s portfolio. When Jim spoke about a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade.
THE ABOVE INVESTMENT CLUB INFORMATION IS GOVERNED BY OUR TERMS AND CONDITIONS AND PRIVACY POLICY ALONG WITH OUR DISCLAIMER. NO OBLIGATION OR OBLIGATION SHALL BE OR CREATED BY YOUR RECEIVING OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.