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Jim Cramer’s top 10 things to watch in the stock market Tuesday

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My top 10 things to watch Tuesday, Aug. 15

  1. The Dow, the S&P 500 and the Nasdaq are set to open lower after disappointing China data and another interest rate cut by the Chinese central bank. Dow stock Home Depot (HD) drops despite quarterly beats. We’ll help you sort out the rough August market at the Investing Club’s monthly meeting at noon ET on Thursday
  2. U.S. retail sales rose more than expected in July. Boosted by online, sporting goods stores, and food services. Drags include furniture as well as electronics and appliance stores.
  3. Home Depot’s quarter not as bad as feared. U.S. same-store sales dropped 2% versus an expected 3.9% decline. $15 billion buyback. The stock would be higher if not for futures. Club name TJX Companies (TJX) reports Wednesday. We booked some profits in the off-price retailer Monday after its recent run higher.
  4. China is trying to boost its stock market by cutting interest rates for the second time in three months. 2.50% from 2.65%. Still plenty of room and can go to zero, like the Fed did. It’s truly a desperate move as they will no longer talk about teenage unemployment. They have 5% inflation overall and a truly slowing economy. The U.S. sanctions are really hurting them.
  5. Russia raises rates to 12% from 8.5% to 12% to defend its currency, the ruble. First sign of economy cracking because of Moscow’s war in Ukraine. Amazing it has taken that long, but it has a Saudi-like economy and the West and China are taking its oil. Is this China saying it doesn’t need more of it? Maybe that’s what’s behind it. The ruble down about 30% year to date. Sanctions are finally biting.
  6. Bank of America downgrades refiners to neutral from buy a big run-up in the group since March 2022. Pretty big call. The stocks include names like Valero Energy (VLO), Phillips 66 (PSX) and Marathon Petroleum (MPC). In energy, we own two exploration and production companies, Coterra Energy (CTRA) and Pioneer Natural Resources (PXD) as well as oilfield services giant Halliburton (HAL).
  7. An analyst at Fitch tells CNBC the credit agency may be forced to downgrade dozens of banks, including Club names Wells Fargo (WFC) and Morgan Stanley (MS). Both stocks are lower. Last week, Moody’s downgraded 10 regional banks and warned more could come. Wells Fargo research analysts says that disinflation could be catalyst for bank stocks.
  8. Evercore put Discover Financial Services (DFS) on its tactical underperform (sell) list after the sudden departure of CEO Roger Hochschild. FDIC investigation into consumer compliance may have caused this change. Board member John Owen was made interim CEO. He’s a 38-year banking veteran.
  9. Baird, Wells Fargo and UBS raise price targets on Club name Nvidia (NVDA). Baird is the highest of the three, going to $570 per share from $475. Nvidia, which has been in a slump recently, looks for back-to-back advances. Monday saw a 7% jump in NVDA.
  10. Tesla (TSLA) launches lower range Model X and Model S that are $10,000 cheaper. Really horrible for all other EVs. Check your email later today for commentary on Ford’s (F) electric vehicle push as well as its embrace of new technologies and the risk of a union strike.

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Source: CNBC

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