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What Cramer is watching Thursday — OPEC+ surprise, Corona beer maker beat, Costco’s sales

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What I am looking at Thursday, Oct. 6, 2022 October surprise: OPEC+’s 2 million barrels-per-day oil production cut to boost prices. U.S. delivers an angry rebuke to the oil cartel and its allies, which include Russia. Oil rose Wednesday after the announcement but down Thursday. U.S. stock futures down Thursday as bond yields rise; one day after the S & P 500 broke a two-day winning streak. Club holding Eli Lilly (LLY): Obesity drug launch likely first-half of 2024. Weight loss indication not until 2024 but prescribed anyway. Only approved for type-2 diabetes now. FDA granted fast-track designation for possible approval for obesity. Beer, wine and spirits company Constellation Brands (STZ) delivers better-than-expected fiscal second-quarter comparable earnings per share, including Canopy stake, of $3.17. EPS excluding Canopy losses came in at $3.33. Revenue of $2.66 billion also beat. Largely update guidance for this Club holding behind Mexican beers Corona, Modelo and Pacifico. Club holding Danaher (DHR) price target cut to $305 per share from $310 at Barclays on worries about life science margins. I am not worried about these margins. Evercore ISI starts coverage of Palo Alto Networks (PANW) with a buy and a $207-per-share price target. This is a Club Bullpen stock. We really like it here, and perhaps we would sell more of an oil name now that they are up so much to swap into this one. Evercore also likes Zscaler (ZS) and CrowdStrike (CRWD) but consider Okta (OKTA) an under performer. Baird says buy Costco (COST) as September comps were strong. The Club holding initially traded badly after these numbers. This is an opportunity. International Paper (IP) price target lowered to $35 per share from $47 at Wells Fargo. It has often been used against Club name Amazon (AMZN) but seems fatuous because there are many plants and pricing is bad for everything. UBS slashes price target on North Face and Timberland parent VF Corp. (VFC) to $35 per share from $51. How the mighty have fallen. Venator Materials (VNTR) downgraded to sell from. Titanium dioxide down a great deal. TiO2 is used in a lots of industrial and consumer products. Peloton (PTON) cuts 500 more jobs. CEO Barry McCarthy tells CNBC the connected fitness equipment maker has six months to show the company’s restructuring can help it grow. Shares of Nasdaq (NDAQ), the company that oversees the stock exchange, goes to overweight from neutral (buy from hold) at JPMorgan. Looks like a valuation call. Take-Two Interactive (TTWO) upgraded to buy from neutral (hold) at Goldman Sachs, price target raised to $165 per share from $131. That PT reflects more than 40% upside from Wednesday’s $117 close. Pinterest (PINS) now making money on ads, says Goldman Sachs, raises price target on the stock to $31 per share from $24 and upgrades to a buy rating from neutral (hold). Canaccord starts coverage of Penn Entertainment (PENN) with a buy rating and a $50 price target. Gambling company and media (Barstool and theScore), too. JPMorgan raises price target on Caterpillar (CAT) to $220 per share from $205. Good orders. (Jim Cramer’s Charitable Trust is long LLY, DHR, STZ and AMZN. See here for a full list of the stocks.) 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.

Oil prices have fallen to roughly $80 from over $120 in early June amid growing fears about the prospect of a global economic recession.
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What I am looking at Thursday, Oct. 6, 2022

October surprise: OPEC+’s 2 million barrels-per-day oil production cut to boost prices. U.S. delivers an angry rebuke to the oil cartel and its allies, which include Russia. Oil rose Wednesday after the announcement but down Thursday. U.S. stock futures down Thursday as bond yields rise; one day after the S&P 500 broke a two-day winning streak.

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