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Top 10 things to watch in the stock market Friday: Market slide, optimism on Club stocks

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Top 10 things to watch Friday, Feb. 17

1. Thursday’s late-day market selloff on hawkish Fed talk extends into Friday with the Dow, the S&P 500 and the Nasdaq set to open lower. Oil prices pull back 3%. The 10-year Treasury yield, at roughly 3.9%, hasn’t been this high since November.

2. Deere (DE) posts a big earnings beat: $6.55 per share for fiscal 2023 first quarter, beating estimates of $5.53. Production & Precision Agriculture fiscal Q1 operating profit soars 308% year over year. Raises its full-year net income forecast to $8.75 billion to $9.25 billion. Previously it was $8 billion to $8.5 billion. The Club owns Caterpillar (CAT).

3. Citi initiates coverage on the U.S. Beverage and Household Products & Personal Care industry. Puts buy ratings on Club names Constellation Brands (STZ), Estee Lauder (EL) and Procter & Gamble (PG). Analysts there favor high-quality names that have fallen on temporary concerns with gross margin expansion opportunities as commodity prices decline and real pricing power. They also like Colgate -Palmolive (CL), Coca-Cola (KO), and Monster Beverage (MNST); sells on Kimberly Clark (KMB) and Brown-Forman (BF.b).

4. Citi is tactically cautious on Club holding Salesforce (CRM) into March 1 earnings. Their partner checks suggest demand continues to slow, limiting upside in the quarter and fiscal year 2024 outlook. Analysts think margin upside at CRM may already be priced in.

5. DraftKings shares (DKNG) up 11% early Friday after higher-than-expected revenue and a much smaller than-expected adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss: $49.9 million versus an expected loss of $112.3 million. Also raises its full-year revenue forecast and sees a smaller adjusted EBITDA loss than expected. Expects to be adjusted EBITDA positive in fiscal year 2024.

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6. Roku (ROKU) double upgraded at Bank of America to buy, price target to $85 per share. BofA says ROKU outperforming the broader advertising market, sees ad spending across several verticals finally bottoming out.

7. Evercore puts Walmart (WMT) on its tactical outperform list ahead of earnings this coming Tuesday, but puts a negative tactical call on Home Depot (HD) and Target (TGT).

8. CH Robinson (CHRW) downgraded at JPMorgan to underweight (sell); says it’s tough to own a freight and logistics broker when margins are compressing.

9. GE Healthcare (GEHC) started with a buy at Mizuho, price target of $90 per share.

10. UBS says to expect a soft fiscal year 2023 guide from Nordstrom (JWN) to pressure the stock. UBS Evidence Lab data shows decelerating traffic trends at its stores.

(Jim Cramer’s Charitable Trust is long CAT, STZ, EL, PG, CRM. 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.

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Source: CNBC

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