Oil and natural gas prices are on different paths. Here’s what has been driving the moves

Oil and natural gas prices are on different paths. Here’s what has been driving the moves

Post By Oil and Gas Breaking News: Markets, business news, Coterra Energy Inc, Devon Energy Corp, Diamondback Energy Inc, Energy, Exxon Mobil Corp, ICE Brent Crude (Apr'23), Investment strategy, Jim Cramer, Markets, Natural Gas (Mar'23), Oil and Gas, Pioneer Natural Resources Co, S&P 500 Index, stock takes, United States, WTI Crude (Mar'23)

Oil and natural gas prices traveled divergent paths this week, resulting in a mixed picture for the Club stocks Coterra Energy (CTRA) and Pioneer Natural Resources (PXD). Fresh off robust third-quarter gains, crude has tumbled in recent days, sending the U.S. oil benchmark West Texas Intermediate and global oil standard Brent prices to their lowest levels since late August. Both WTI and Brent are on pace for their worst weeks since March on emergent concerns about demand for oil products. WTI dropped 2% on Thursday to settle at $82.31 a barrel. Brent also fell 2%, settling at $84.07 a barrel. On Friday, they bounced — coming off modest earlier declines after the government released much stronger-than-expected September job growth. WTI vs. nat gas this week @CL.1 @NG.1 mountain 2023-09-29 WTI and nat gas since Sept. 29 settle Meanwhile, the rally in natural gas has picked up steam, pushing the commodity to prices not seen since January, at over $3 per million British thermal units, or MMBtu. In Thursday’s session alone, natural gas prices jumped nearly 7%, as traders reacted to U.S. government data that showed a smaller-than-expected storage build. Traders also continue to monitor weather forecasts in search of clues about future demand heading into the winter months in the Northern Hemisphere. For the week, through Thursday’s settle, natural gas has climbed 8.1%, building on last week’s 11% advance. Natural gas on Friday morning jumped another 1.5%. In the oil market, a switch has seemingly been flipped. WTI and Brent rose more than 28% and 27%, respectively, in the third quarter, as major oil exporters Saudi Arabia and Russia cut production at a time when economic activity — and by extension demand for crude – proved more resilient than expected. Now, the market is grappling with the idea that demand might be waning. Those concerns were amplified by U.S. government data Wednesday that indicated gasoline inventories in the week ended Sept. 29 grew by 6.48 million barrels, a much higher increase than expected. WTI and Brent each plunged by 5.6% in Wednesday’s session. For the week, with one trading day to go, WTI and Brent sank more than 9% and nearly 12%, respectively. “The single biggest element of the global oil market is U.S. gasoline. We consume not far off 1 in 10 barrels just in U.S. cars,” veteran energy analyst Paul Sankey said Thursday on CNBC. “When it’s as weak as it came in [Wednesday] and it already been weak the week before, it becomes a major problem in the global oil market.” The magnitude of the sell-off, Sankey said, is linked to the traders who had been rushing into crude during its summertime ascent that continued into September , raising the specter of $100 per barrel oil . Brent traded as high as $97.69 a barrel on Sept. 28 while WTI reached $95.03 on the same day. Recent data has traders looking to reduce their risk, Sankey said. “The speculative interest before this run was very low,” he said. “Our view was that our shot at $100 was that speculators would pile in. The problem is … risk-off turned into [really} risk-off, and that became the speculators running for the exits again.” Some analysts see the oil swoon as temporary. In a note to clients Thursday, Goldman Sachs said the reasons for the declines — which in addition to gasoline demand concerns also include recession fears in 2024 and technical factors — “will prove to be transitory.” The firm said it still believes Brent crude can reach $100 a barrel by the spring. The recent decline in crude has hurt energy stocks including Pioneer and Coterra. Of the 11 sectors in the S & P 500 , energy has been by far the worst weekly performer through Thursday, falling nearly 6%. The broad S & P 500 index was down 0.7% over the past four sessions. Shares of Pioneer have retreated 6.4% over the same stretch, closing at $214.96 each Thursday. However, Pioneer’s weekly losses will be erased if the stock’s premarket surge of 10% holds. Friday’s spike higher came after The Wall Street Journal reported Exxon Mobil (XOM) was in advanced talks to acquire the Club holding. In April, the newspaper reported Exon held “informal” discussions on Pioneer. Pioneer vs. Coterra this week PXD CTRA mountain 2023-09-29 Pioneer vs. Coterra since Sept. 29 close Coterra held up better this week through Thursday, with the stock falling 3.5%, to $26.11 per share. The stock was little changed in Friday’s premarket. The relative outperformance in Coterra is likely tied to its significant natural gas exposure, compared with Pioneer and exploration-and-production (E & P) peers such as Diamondback Energy (FANG) and former Club holding Devon Energy (DVN). Coterra’s revenues are roughly a 50-50 split between oil and natural gas. On Monday, when we bought 200 more shares of Coterra, we argued its stock did not adequately reflect the appreciation in natural gas prices. Now, the stock has slipped a bit lower than where we bought while natural gas has climbed higher. (Jim Cramer’s Charitable Trust is long PXD and CTRA. 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 eased in Asian as concerns over slow demand from top crude importer China grew after bearish trade and inflation data, outweighing fears over tighter supply arising from output cuts by Saudi Arabia and Russia.

David Mcnew | Getty Images News | Getty Images

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

Post By Oil and Gas Breaking News: Markets, business news, Cadence Design Systems Inc, Central banking, Coterra Energy Inc, ETSY Inc, Ford Motor Co, Investment strategy, Jim Cramer, Markets, NASDAQ Composite, NVIDIA Corp, Oil and Gas, Pioneer Natural Resources Co, S&P 500 Index, SoftBank Group Corp, U.S. 10 Year Treasury, WTI Crude (Mar'23)

My top 10 things to watch Thursday, Sept. 14 1. U.S. equities edge up in premarket trading, with investors largely betting the Federal Reserve won’t raise interest rates further when the central bank convenes next week. The S & P 500 is up 0.33%, while the Nasdaq Composite is 0.24% higher. U.S. government bond yields tick up, with that of the 10-year Treasury hovering just below 4.3%. 2. Oil prices continue to climb higher, with West Texas Intermediate crude, the U.S. oil benchmark, climbing above $90 a barrel for the first time since last November. Club oil holdings Coterra Energy (CTRA) and Pioneer Natural Resources (PXD) are up 1.48% and 0.88%, respectively, in early trading. Here’s the Club’s take on oil’s 10-month highs. 3. U.S. wholesale inflation climbs more than expected in August, according to the Labor Department’s monthly producer price index. At the same time, U.S. retail sales come in higher than predicted for last month, the Commerce Department reports, though the gains are largely driven by higher gasoline prices. 4. The European Central Bank raises interest rates by a quarter percentage point , bringing its deposit rate to a record-high 4%. The increase is the ECB’s 10th-conesecutive rate hike. 5. British chip designer Arm Holdings, owned by SoftBank Group (SFTBF), sets its highly anticipated initial public offering at $51 a share , valuing the company at over $54 billion. At this price, there’s not a lot of room for error. The firm will start trading Thursday on the Nasdaq under the stock symbol ARM. 6. The European Union launches an “anti-subsidy” investigation into China’s electric-vehicle companies, with Beijing calling the move “blatant protectionism.” Will Europe go 27.5% tariffs on Chinese cars? This could be a real issue for China. 7. China’s central bank is cutting the reserve requirement ratio for all banks, except those that have implemented a 5% reserve ratio, by 25 basis points from Sept. 15, in the government’s latest effort to prop up its faltering economy. 8. Jim Farley, the CEO of Club holding Ford Motor (F), rejects allegations by United Auto Workers President Shawn Fain that the automaker is not taking bargaining seriously ahead of a Thursday night strike deadline. Here’s the Club’s take on how a union strike could impact Ford. 9. KeyBank raises its price target on Chip designer Cadence Design Systems (CDNS) to $290 a share, up from $270, while reiterating an overweight rating on the stock. The firm’s call comes after KeyBank analysts met with early users of the company’s new AI-enabled EDA design portfolio. Cadence is a partner of AI chipmaker and Club holding Nvidia ( NVDA). 10. Wolfe Research upgrades ecommerce firm Etsy Inc. (ETSY) to outperform, from peer perform, with a $100-per-share price target. The firm cites “many paths” for Etsy shares to outperform over the next 12-18 months. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free . (See here for a full list of the stocks at 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, Sept. 14

1. U.S. equities edge up in premarket trading, with investors largely betting the Federal Reserve won’t raise interest rates further when the central bank convenes next week. The S&P 500 is up 0.33%, while the Nasdaq Composite is 0.24% higher. U.S. government bond yields tick up, with that of the 10-year Treasury hovering just below 4.3%.

2. Oil prices continue to climb higher, with West Texas Intermediate crude, the U.S. oil benchmark, climbing above $90 a barrel for the first time since last November. Club oil holdings Coterra Energy (CTRA) and Pioneer Natural Resources (PXD) are up 1.48% and 0.88%, respectively, in early trading. Here’s the Club’s take on oil’s 10-month highs.

3. U.S. wholesale inflation climbs more than expected in August, according to the Labor Department’s monthly producer price index. At the same time, U.S. retail sales come in higher than predicted for last month, the Commerce Department reports, though the gains are largely driven by higher gasoline prices.

4. The European Central Bank raises interest rates by a quarter percentage point, bringing its deposit rate to a record-high 4%. The increase is the ECB’s 10th-conesecutive rate hike.

5. British chip designer Arm Holdings, owned by SoftBank Group (SFTBF), sets its highly anticipated initial public offering at $51 a share, valuing the company at over $54 billion. At this price, there’s not a lot of room for error. The firm will start trading Thursday on the Nasdaq under the stock symbol ARM.

6. The European Union launches an “anti-subsidy” investigation into China’s electric-vehicle companies, with Beijing calling the move “blatant protectionism.” Will Europe go 27.5% tariffs on Chinese cars? This could be a real issue for China.

7. China’s central bank is cutting the reserve requirement ratio for all banks, except those that have implemented a 5% reserve ratio, by 25 basis points from Sept. 15, in the government’s latest effort to prop up its faltering economy.

8. Jim Farley, the CEO of Club holding Ford Motor (F), rejects allegations by United Auto Workers President Shawn Fain that the automaker is not taking bargaining seriously ahead of a Thursday night strike deadline. Here’s the Club’s take on how a union strike could impact Ford.

9. KeyBank raises its price target on Chip designer Cadence Design Systems (CDNS) to $290 a share, up from $270, while reiterating an overweight rating on the stock. The firm’s call comes after KeyBank analysts met with early users of the company’s new AI-enabled EDA design portfolio. Cadence is a partner of AI chipmaker and Club holding Nvidia (NVDA).

10. Wolfe Research upgrades ecommerce firm Etsy Inc. (ETSY) to outperform, from peer perform, with a $100-per-share price target. The firm cites “many paths” for Etsy shares to outperform over the next 12-18 months.

Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free.

(See here for a full list of the stocks at 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.

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Oil prices are at 10-month highs. Here’s what Cramer thinks it means for two energy stocks

Post By Oil and Gas Breaking News: Markets, business news, Coterra Energy Inc, Eli Lilly and Co, Energy, Exxon Mobil Corp, Investment strategy, Jim Cramer, Markets, NVIDIA Corp, Oil and Gas, Pioneer Natural Resources Co, stock takes, WTI Crude (Mar'23)

Oil prices are hovering around 10-month highs, as a stout summer rally extends into the fall and delivers additional gains for the Club’s energy stocks, Pioneer Natural Resources (PXD) and Coterra Energy (CTRA). And Jim Cramer believes it’s not too late to buy either of them. West Texas Intermediate crude, the U.S. oil benchmark, has jumped 32% since its lows of the summer on June 12, to nearly $89 a barrel. Meanwhile, global oil standard Brent crude has climbed 28%, to around $92 a barrel. Both WTI and Brent on Tuesday settled at their highest levels since November. Over the same stretch since June 12, Pioneer stock has risen 17.1%, while Coterra gained 16.4%. That makes them the fifth and sixth best-performing Club stocks during that time — ahead of artificial intelligence winner Nvidia (NVDA), but behind pharmaceuticals giant Eli Lilly (LLY). Coterra on Tuesday closed at its highest level of the year, at $28.47 per share. Pioneer is about 3% off its 2023 peak of $243 per share, reached on Sept. 5. “I think that it is not too late to buy either of these,” Jim Cramer noted on Tuesday. The rise in oil prices largely boils down to a mismatch between supply and demand. Production cuts from major oil exporters such as Saudi Arabia and Russia have contributed to tighter supplies at a time when major economies have remained healthier than expected. Indeed, prices took a major leg higher last week after Saudi Arabia and Russia said they’d extend through year-end their voluntary output reductions of a combined 1.3 million barrels per day. This week’s move in crude was helped by a new report from the Organization for Petroleum Exporting Countries , which projected that oil demand will grow by 2.25 million barrels per day in 2024, citing economic resiliency. Saudi Arabia is the de-facto leader of OPEC. Russia is the oil cartel’s largest partner producer in an expanded group known as OPEC+ . The current backdrop may keep oil prices supported through the fall, according to the U.S. Energy Information Administration’s short-term outlook published Tuesday . Citing Saudi Arabia’s production-cut extension and an expected further drawdown of global oil inventories, the government statistics agency forecasted Brent crude will average around $93 a barrel in the fourth quarter, less than 1% above where it settled Tuesday. If higher oil prices – and by extension fuel prices – are sustained in the coming months, the investment implications may be somewhat mixed. On one hand, Pioneer and Coterra would likely generate more free cash flow than in the first half of 2023 , which could lead to increased share repurchases and higher dividend payouts — key reasons investors like us are in the stocks. On the other hand, it may complicate the Federal Reserve’s efforts to squash inflation through higher interest rates. For much of this year, the downward trend in oil prices contributed to lower year-over-year inflation readings . Now, “oil is the wildcard” that might prompt the U.S. central bank to rethink policy and raise interest rates more aggressively than previously thought necessary, according to Jim. In the Labor Department’s monthly consumer price index report for August, released Wednesday, higher gasoline prices were responsible for more than half of the headline 0.6% month-over-month increase. Currently, the Fed is expected leave interest rates unchanged between 5.25% and 5.5% at its meeting next week, according to the CME Group’s FedWatch tool . The Fed had paused raising interest rates in June, before instituting another quarter-percentage-point increase in July — the central bank’s 11th rate hike in 17 months. There was no policy decision in August. Put another way, our energy exposure’s role as an inflation hedge – on display throughout 2022 following the crude-price surge tied to Russia’s invasion of Ukraine in February of that year – may become more apparent. And it adds to the attractiveness of owning Pioneer and Coterra here. Jim sees additional upside for both. Pioneer’s stock is less than 2% higher than where it traded back in April, in the days following a “bogus” report that Exxon Mobil (XOM) held talks to acquire the Club holding, Jim pointed out. Shares of Pioneer “should be much higher,” he said, noting the potential for more robust capital returns due to higher oil prices. Plus, he said, Pioneer’s natural-gas offerings are another potential plus for the stock. “I hadn’t figured it would matter that much, but any increase in nat-gas prices could be an added benefit,” he said. Coterra offers a quality mix between crude and natural-gas exposure. While natural gas prices are dramatically lower than a year go, the commodity has gained in recent months. And it’s currently riding a four-day winning streak, settling Tuesday at $2.743 per million British thermal units. That has helped Coterra shares. But Jim said the stock has still yet to break out in a meaningful way. “There’s more room to run,” he said. “I could see the stock busting through the $30 level.” (Jim Cramer’s Charitable Trust is long PXD and CTRA . 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.

An oil pump jack in Great Plains, southeastern Wyoming.

Marli Miller | Universal Images Group | Getty Images

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

Post By Oil and Gas Amgen Inc, Biotech and Pharmaceuticals, Breaking News: Business, Breaking News: Markets, business news, Cleveland-Cliffs Inc, Coterra Energy Inc, Hang Seng Index, Investment strategy, Jim Cramer, Markets, Marriott International Inc, NVIDIA Corp, Oddity Tech Ltd, Oil and Gas, Retail industry, Target Corp, TJX Companies Inc, Toast Inc, United States Steel Corp, Urban Outfitters Inc, Walmart Inc

My top 10 things to watch Monday, August 14 1. It’s a big week of retail earnings. Is Target (TGT) undervalued? Is Walmart (WMT) overvalued? Is Club name TJX Companies (TJX) going to start with its usual up two points and then cascade down two? That’s what you need to be ready for. TJX and Target report second-quarter results on Wednesday, while Walmart reports on Thursday. 2. Morgan Stanly on Monday names Club holding Nvidia (NVDA) a top pick, while predicting a beat and raise when the company reports second-quarter results on Aug. 23. But I really want to warn people that I don’t think it’s ready to be bought . 3. Mizuho on Monday raises its price target on Amgen (AMGN), a very low-risk pharmaceuticals company, to $223 a share from $214, while maintaining a neutral rating on the stock. Elsewhere, Jefferies raises its price target on Amgen to $310 a share, up from $275, and reiterates a buy rating. 4. U.S. Steel (X) rejects an unsolicited takeover bid from rival Cleveland-Cliffs (CLF) that would have valued the former at roughly $7 billion. Cliffs is willing to buy anything. But why would the Federal Trade Commission ever allow this? U.S. Steel said Sunday it’s reviewing its strategic options. 5. Citigroup on Monday downgrades Urban Outfitters (URBN) to neutral from buy ahead of the clothing retailer’s second-quarter earnings on Aug. 22, while raising its price target to $40 a share, up from $36. The firm expects URBN to deliver an earnings beat, but thinks market expectations are too high going into the print. I like this company and find this downgrade disturbing. 6. Following a red-hot initial public offering last month, Morgan Stanley on Monday initiates coverage on beauty-and-wellness company Oddity Tech (ODD) with the equivalent of a hold rating and $57-a-share price target. The bank cites “strong long-term revenue growth prospects” for Oddity, but thinks the positives are already priced into the stock’s valuation. 7. Bernstein on Monday downgrades hotel chain Marriott International (MAR) to market perform, or neutral, from outperform, arguing the stock’s short-term upside is limited by its increased valuation this year and a slowdown in the U.S. luxury space. But the firm increases its price target on Marriott to $218 a share, up from $204. 8. Mizuho on Monday raises its price target on restaurant-management-software firm Toast (TOST) to $30 a share, up from $27, while maintaining a buy rating on the stock, following its “very strong” second-quarter results. Baird, conversely, designated Toast a “bearish fresh pick” following its big run of late. The firm has a neutral rating on the stock, with a price target of $25 a share. 9. China’s Country Garden, the country’s largest private real-estate developer, suspends trading of its onshore bonds on Monday, in a sign it could soon move to restructure its debt. Shares are down roughly 17%, weighing heavily on Hong Kong’s Hang Seng Index . The news is the latest sign Beijing will likely need to step in to shore up China’s beleaguered real-estate sector. 10. Piper Sandler on Monday raises its price target on Club name Coterra Energy (CTRA) to overweight, or buy, from neutral, on expectations for “strong execution across the portfolio.” The bank increases its price target on the oil-and-gas firm to $35 a share, up from $30. And remember to tune into the Club’s Monthly Meeting on Thursday at 12:00 p.m. ET. (See here for a full list of the stocks at 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 Monday, August 14

1. It’s a big week of retail earnings. Is Target (TGT) undervalued? Is Walmart (WMT) overvalued? Is Club name TJX Companies (TJX) going to start with its usual up two points and then cascade down two? That’s what you need to be ready for. TJX and Target report second-quarter results on Wednesday, while Walmart reports on Thursday.

2. Morgan Stanly on Monday names Club holding Nvidia (NVDA) a top pick, while predicting a beat and raise when the company reports second-quarter results on Aug. 23. But I really want to warn people that I don’t think it’s ready to be bought.

3. Mizuho on Monday raises its price target on Amgen (AMGN), a very low-risk pharmaceuticals company, to $223 a share from $214, while maintaining a neutral rating on the stock. Elsewhere, Jefferies raises its price target on Amgen to $310 a share, up from $275, and reiterates a buy rating.

4. U.S. Steel (X) rejects an unsolicited takeover bid from rival Cleveland-Cliffs (CLF) that would have valued the former at roughly $7 billion. Cliffs is willing to buy anything. But why would the Federal Trade Commission ever allow this? U.S. Steel said Sunday it’s reviewing its strategic options.

5. Citigroup on Monday downgrades Urban Outfitters (URBN) to neutral from buy ahead of the clothing retailer’s second-quarter earnings on Aug. 22, while raising its price target to $40 a share, up from $36. The firm expects URBN to deliver an earnings beat, but thinks market expectations are too high going into the print. I like this company and find this downgrade disturbing.

6. Following a red-hot initial public offering last month, Morgan Stanley on Monday initiates coverage on beauty-and-wellness company Oddity Tech (ODD) with the equivalent of a hold rating and $57-a-share price target. The bank cites “strong long-term revenue growth prospects” for Oddity, but thinks the positives are already priced into the stock’s valuation.

7. Bernstein on Monday downgrades hotel chain Marriott International (MAR) to market perform, or neutral, from outperform, arguing the stock’s short-term upside is limited by its increased valuation this year and a slowdown in the U.S. luxury space. But the firm increases its price target on Marriott to $218 a share, up from $204.

8. Mizuho on Monday raises its price target on restaurant-management-software firm Toast (TOST) to $30 a share, up from $27, while maintaining a buy rating on the stock, following its “very strong” second-quarter results. Baird, conversely, designated Toast a “bearish fresh pick” following its big run of late. The firm has a neutral rating on the stock, with a price target of $25 a share.

9. China’s Country Garden, the country’s largest private real-estate developer, suspends trading of its onshore bonds on Monday, in a sign it could soon move to restructure its debt. Shares are down roughly 17%, weighing heavily on Hong Kong’s Hang Seng Index. The news is the latest sign Beijing will likely need to step in to shore up China’s beleaguered real-estate sector.

10. Piper Sandler on Monday raises its price target on Club name Coterra Energy (CTRA) to overweight, or buy, from neutral, on expectations for “strong execution across the portfolio.” The bank increases its price target on the oil-and-gas firm to $35 a share, up from $30.

And remember to tune into the Club’s Monthly Meeting on Thursday at 12:00 p.m. ET.

(See here for a full list of the stocks at Jim Cramer’s Charitable Trust.)

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Oil prices are finally rallying. Here’s what it means for three key energy stocks

Post By Oil and Gas Breaking News: Markets, business news, Coterra Energy Inc, Energy, Halliburton Co, Investment strategy, Jim Cramer, Markets, Oil and Gas, Pioneer Natural Resources Co, stock takes

A long-awaited rally in crude oil prices has helped the Club’s three oil-and-gas companies become some of our top-performing stocks over the past month. And with new signs the commodity could continue to rally this year, we’re sitting tight on our energy holdings. Brent crude, the global oil benchmark, and West Texas Intermediate crude, the U.S. oil standard, have both climbed by more than 10% since late June. Brent was up roughly 1% Thursday, at nearly $80 a barrel. WTI was trading up 0.72%, at more than $83 a barrel. Energy stocks linked to crude — including Club names Halliburton (HAL), Coterra Energy (CTRA) and Pioneer Natural Resources (PXD) — have risen on oil’s fortunes. Shares of Halliburton have climbed roughly 18%, while Coterra and Pioneer have advanced about 12% and 10%, respectively, since crude’s most-recent bottom in late June. Troubled pharmaceutical firm Bausch Health (BHC) has been the top-performing Club stock during that same stretch, advancing nearly 28%. “This was a move that many have expected to occur all year,” TD Cowen energy analyst Jason Gabelman said of crude’s recent rise. “A lot of investors, I think, have been … somewhat disappointed on oil being rangebound for the past few months in the low-to-mid $70s,” Gabelman told CNBC. Among the biggest drivers of the momentum has been signs that previously pledged production cuts from Saudi Arabia and Russia are finally taking hold, analysts widely said, helping address concerns investors had about excessive supply in the market. Russian production, in particular, has exceeded expectations throughout the year. But last week, nationwide crude shipments in Russia stood at 2.73 million barrels a day, down 1.48 million barrels per day from their late-April peak, according to data compiled by Bloomberg . Economic data also suggests oil demand is proving more resilient than investors initially expected, said Truist’s Neal Dingmann. “Not to say we’re certainly out of the woods on inflation or a recession,” Dingmann told CNBC, “but the picture is much better for some type of growth, even very minimal.” Mizuho analyst Nitin Kumar – who covers Coterra and Pioneer and has a buy rating on both stocks – said he believes the setup for crude prices remains solid throughout the second half of 2023. While the potential for a demand-destroying recession remains a big wildcard, Kumar said there’s a lot to be encouraged by on the supply side. The Organization of Petroleum Exporting Countries and its oil-producing allies, collectively known as OPEC+, has shown discipline on production and been willing to take action designed to shore up prices , Kumar said, even if the market has, at times, shrugged off such decisions . Saudi Arabia is the de-facto head of the OPEC cartel and Russia is the group’s largest partner producer. Saudi Arabia, Russia and the U.S. are the world’s three-largest oil producers. U.S. producers also have shown restraint, Kumar told CNBC, with domestic crude production hovering around 12.3 million barrels per day all year . Moreover, a year-over-year drop in U.S. rig counts points to “a bit of a decline in oil production” down the road, Kumar said. As of July 21, the number of active U.S. oil rigs stood at 530, according to Baker Hughes, down 11.5% from the same period in 2022. Taken together, Kumar said, “globally, except for a recession, you should be in an undersupplied scenario for the second half.” Others on Wall Street, including analysts at Goldman Sachs , also expect demand to outpace supply in the third and fourth quarters, supporting higher prices. In theory, when commodity prices are higher, our energy holdings can generate more free cash flow. And that money can be used to pay dividends and repurchase stock, a key reason we’re invested in the sector. That dynamic was on display last week, when Halliburton – our largest oil-and-gas holding, carrying a 2.1% weighting in the portfolio, as of Wednesday – reported better-than-expected free cash flow in the second quarter. While we locked in a small profit on Halliburton in mid-July , the company’s execution in the second quarter certainly pleased us. As an oilfield-services firm, Halliburton is a play on drilling activity. Pioneer and Coterra are set to report their second-quarter results on Aug. 1 and Aug. 7, respectively. On metrics such as revenue, earnings and cash flow, exploration-and-production (E & P) companies face difficult year-over-year comparisons. For most of the second quarter in 2022, crude prices were north of $100 per barrel amid shocks from geopolitical risks like Russia’s invasion of Ukraine — and subsequent Western sanctions on Russia oil sales — in February of that year. Against this backdrop, energy investors will be closely watching how companies’ well productivity stacks up versus last year, according to Truist’s Dingmann, who maintains hold ratings on Pioneer and Coterra. Management commentary on service-cost inflation is another area of focus, Dingmann said. If those costs continue to moderate, E & P firms should eventually see relief on their capital expenditures, assuming production plans are held constant. The Club’s take Our investment thesis in Pioneer has been rooted in its low production costs and high-quality acreage in the Permian Basin in western Texas and southeastern New Mexico. For Coterra, we continue to like its mix of oil-and-natural gas revenues — split roughly 50-50. Coterra’s exposure to natural gas bodes well long term, despite prices being down sharply from their 2022 peaks, because the U.S. is adding export capacity for liquified natural gas. Coterra is well-positioned to benefit as additional LNG facilities come online in 2024 and beyond . The bottom line is the oil rally may just be getting started — and, if that’s the case, our stocks linked to the commodity could see additional gains ahead. (Jim Cramer’s Charitable Trust is long CTRA, HAL and PXD. 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 rig and pump of H&P Rig 488 in Stanton, Texas, on June 8, 2023.

Suzanne Cordeiro | AFP | Getty Images

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#Oil #prices #finally #rallying #Heres #means #key #energy #stocks

These non-tech stocks are ‘back from the dead.’ Here’s where we stand

Post By Oil and Gas Apple Inc, Banks, Breaking News: Markets, business news, Caterpillar Inc, Constellation Brands Inc, Coterra Energy Inc, Emerson Electric Co, Energy, Financials, Food and drink, Halliburton Co, Investment strategy, Jim Cramer, Markets, Morgan Stanley, NVIDIA Corp, S&P 500 Index, stock takes, TJX Companies Inc, Wells Fargo & Co

A number of Club stocks that were unloved on Wall Street earlier in the year have seen their fortunes rebound in recent months, including oilfield-services firm Halliburton (HAL) and industrial Caterpillar (CAT) — creating potential opportunities to lock in gains. It’s been the year of technology on Wall Street. But, as Jim Cramer said Wednesday stocks in other parts of the market have started to come “back from the dead.” But how should investors navigate their positions in these resurrected stocks? In that vein, we screened our 35-stock portfolio to isolate the companies that have underperformed the S & P 500 so far in 2023 — meaning that, as of Wednesday’s close, they had gained less than 18.9% year-to-date. This allowed us to focus on a universe of stocks that haven’t necessarily been red hot like technology names such as Nvidia (NVDA), which has more than tripled in value this year. From there, we calculated each stocks’ lowest closing price since May 1 — roughly a month before this year’s rally started to broaden beyond tech — and how much each has climbed since that low to determine which have had the strongest momentum. We found eight stocks with double-digit percentage gains off their recent lows: Halliburton, Caterpillar, Wells Fargo (WFC), Constellation Brands (STZ), Emerson Electric (EMR), Coterra Energy (CTRA), Morgan Stanley (MS) and TJX Companies (TJX). Between May 1 and Wednesday’s close, the S & P 500 advanced 9.6%. Here’s a look at where we stand on these eight Club stocks, starting with the biggest gainer, Halliburton, and concluding with the eighth-best performer, TJX Companies. HAL 3M mountain Halliburton’s stock performance over the past three months. Recognizing Halliburton’s recent strength, we trimmed our position in the oilfield-services firm last week , locking in a small profit. Its second-quarter earnings report Wednesday underscored the company’s cash-generation abilities, and drilling activity may pickup further if oil prices climb. Plus, the stock remains cheap on a historical basis. Taken together, we’re comfortable holding onto our Halliburton position. CAT 3M mountain Caterpillar’s stock performance over the past three months. Similar to Halliburton, we made a disciplined, 30-share Caterpillar sale on July 10 because the stock’s strong momentum allowed it to break above our cost basis. We wanted to make sure we didn’t give back any of that move higher in what’s proven to be a battleground stock. Still, our multiyear thesis around CAT as an infrastructure spending winner remains intact, and we’re willing to let the position ride here. WFC 3M mountain Wells Fargo’s stock performance over the past three months. Wells Fargo is finally getting the respect it deserves, after issuing better-than-expected second-quarter results and raising its 2023 net-interest income guidance. The stock remains attractively valued — trading at 9.6 times forward earnings versus its five-year average of 11.4, per FactSet — and carries a respectable dividend yield around 2.5%. Those are reasons to feel comfortable owning it. But from a portfolio management perspective, Wells Fargo now carries a nearly 5% weighting, making it our second-largest holding behind only Apple (AAPL). For that reason, we may look to trim some WFC if its rally continues. STZ 3M mountain Constellation Brand’s stock performance over the past 3 months. Our outlook on Constellation Brands is even brighter knowing activist investor Elliott Management is involved and sees “meaningful growth potential” for the Corona and Modelo beer maker. We booked some profits Monday in Constellation, taking advantage of its recent momentum, and now feel comfortable to let the position run as we wait for Elliott’s influence to lead to improved financial discipline at the company. “If you get frustrated, you end up selling too low,” Jim said earlier this week. On Thursday, he suggested STZ shares could reach $300 per share . EMR 3M mountain Emerson Electric’s stock performance over the past three months. Following the bounce off its May 31 low, Emerson Electric has broken above our cost basis — a very welcome development for this hot-and-cold position. If Emerson is able to mount another run higher, we may look to sell some stock because of our uncertainties around management’s execution. It’s no secret that the way Emerson’s National Instruments acquisition played out left us frustrated. CTRA 3M mountain Coterra Energy’s stock performance over the past three months. Coterra Energy is another stock on this list that we’re willing to just hold here. If its recent momentum fades and a meaningful pullback ensues, we may look to add to our fairly small position, at a roughly 1% weighting. Energy prices have increased, and we know that the oil-and-gas producer can break even with relatively low oil prices, which should bode well for free cash flow and capital returns to shareholders. MS 3M mountain Morgan Stanley’s stock performance over the past three months. Morgan Stanley’s stronger-than-expected quarterly results , released Tuesday, demonstrated that the bank’s once-struggling stock price didn’t reflect its underlying fundamentals. But, similar to Wells Fargo, portfolio management may eventually win the day. “Discipline always trumps conviction,” Jim said earlier this week . “My conviction is that Morgan Stanley’s stock goes higher. It doesn’t matter. My discipline says you already have too much of it.” As of Thursday, Morgan Stanley had the third-largest weighting in our portfolio, at approximately 4.5%. TJX 3M mountain TJX Companies’ stock performance over the past three months. The parent of TJ Maxx and Home Goods closed out Thursday just shy of Wednesday’s all-time high, validating our selective approach to the retail sector. While we’re always cautious about adding to a position near a peak, the story at TJX continues to look solid. Jim said last week he could see TJX ascending to $95 per share, representing more than 10% upside from Thursday’s close, at $85.44 apiece. The off-price retailer has an opportunity to gain market share not only due to Bed Bath & Beyond’s bankruptcy, but from consumers who are increasingly seeking out value. (Jim Cramer’s Charitable Trust is long HAL, CAT, WFC, STZ, EMR, CTRA, MS and TJX. 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.

Workers walk towards Halliburton Co. “sand castles” at an Anadarko Petroleum Corp. hydraulic fracturing (fracking) site north of Dacono, Colorado, U.S., on Tuesday, Aug. 12, 2014.

Jamie Schwaberow | Bloomberg | Getty Images

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Here are our top 4 stocks and worst 4 stocks to start the second half of 2023

Post By Business Apple Inc, Breaking News: Business, Breaking News: Markets, Breaking News: Technology, business news, Coterra Energy Inc, Eli Lilly and Co, Energy, Foot Locker Inc, Halliburton Co, Investment strategy, Jim Cramer, Johnson & Johnson, Markets, Meta Platforms Inc, Microsoft Corp, NASDAQ Composite, Novo Nordisk A/S, NVIDIA Corp, Palo Alto, Palo Alto Networks Inc, pharmaceuticals, Pioneer Natural Resources Co, Retail industry, Salesforce Inc, stock takes, Technology, Ulta Beauty Inc

Two weeks into the second half of the year, we put together a quick look at the top four performers and the bottom four in Jim Cramer’s Charitable Trust, the stock portfolio we use for the Investing Club. The first full trading week of July saw Wall Street under some pressure Friday after a multisession winning streak. Gains month-to-date of roughly 2.4% for the Nasdaq add to the tech-heavy index’s best first half (up nearly 32%) in four decades. There are some new names on both the July leaders and July laggards list since we did this exercise looking at our January to June portfolio performance. July leaders HAL mountain 2023-06-30 Halliburton stock performance since June 30 close Oilfield services giant Halliburton (HAL) flips from a first-half loser (down 16%) to top our second-half winner. Month-to-date, HAL gained nearly 12%, a recent rally that we took advantage of Friday morning by booking in some profits. During our Monthly Meeting on Wednesday, we told members we were thinking about a HAL trim. We downgraded the stock in anticipation to a 2 rating . The recent HAL rally can be attributed to a feeling that oil and natural gas producers, like Club names, Pioneer Natural Resources (PXD) and Coterra Energy (CTRA), might need to boost production and that means they’d need the help of a Halliburton. We’ll look for more color around production trends in North America when the company reports its second-quarter earnings this coming Wednesday before the opening bell. CRM 1M mountain Salesforce stock performance month-to-date. Salesforce (CRM) advanced 8.6% in July after a 59% first-half advance. The enterprise software giant announced it will be increasing list prices for some of its top-selling products for new and existing customers by an average of 9%. This is the first time the company has raised prices in seven years. The changes will go into effect next month. The company’s latest move should help top-line growth, expand margins, and boost cash flow. So far this year, CRM stock has also benefitted from getting costs down through personnel cuts and reducing office space. It also bought back stock. It looks like CRM’s quarter will come in the latter part of August. META 1M mountain Meta stock performance month-to-date. Meta Platforms (META) remains a top performer in the portfolio to start the second half, rising 7.6% for the first two weeks of July after more than doubling in the first half. The Facebook and Instagram parent made another 52-week high intraday high of $316.24 on Thursday following the launch of its Twitter rival. Meta’s Threads platform surpassed 100 million signups since last week’s debut. However, there are recent signs suggesting activity has cooled off a bit. More broadly, investors have been sticking with Meta for its leadership in generative AI to attract and keep users on its platforms while offering advertisers AI-powered tools to improve monetization. Jim predicts Meta will deliver a strong second quarter on Jul 26. NVDA mountain 2023-06-30 Nvidia stock performance since June 30 close Nvidia (NVDA), one of our leading tech holdings in the portfolio, has continued its momentum to start the second half of the year. Shares of the semi-king are up 7.5% over the last two weeks of July. (Nvidia and Apple (AAPL) are our only own-it, don’t-trade-it stocks.) To start out the first half of 2023, Nvidia was our top-performing stock in the portfolio with nearly a triple. Nvidia, whose market cap now surpasses $1 trillion, has led the tech sector and the broader market rally, convincing investors like us that its infrastructure and technology needed to fuel the market’s artificial intelligence demand is and will be essential to bring the nascent technology to the mainstream. Nvidia is set to release earnings on Aug. 23. July laggards FL mountain 2023-06-30 Foot Locker stock performance since June 30 close Foot Locker (FL) dropped about 6.5% to start the month, and it was our worst first-half loser (down more than 28%). This week, Baird cut its price target on the footwear and athletic apparel retail to $24 per share from $32 and kept its neutral rating. The analysts warned that FL’s high exposure to lower-income consumers could pressure the second half of the year. A tough macro backdrop is an overhang for CEO Mary Dillon as she tries to resurrect poor financials. She did it with Ulta Beauty (ULTA) back in 2013, and we believe she can do it a second time with Foot Locker. When initiating our position in the shoe retailer in March, we knew about the obstacles. However, the turnaround may take longer than initially expected. The difficulties surrounding Foot Locker are why we have not added to our position since its disappointing first quarter, but we still have faith in Dillon’s leadership and want to be in the stock to catch the potential wave when the tide turns. Second quarter results are due mid-August. PANW mountain 2023-06-30 Palo Alto Networks stock performance since June 30 close Palo Alto Networks (PANW) dropped more than 5.5% month-to-date, moving it to the July laggards list after its 83% first-half advance that had landed the leaders list. Earlier this week, Microsoft (MSFT) announced an expansion of its cybersecurity offerings. It’s a space dominated by PANW, so it’s no wonder why the stock sank 7% on Wednesday. It did, however, claw back some of those losses. Palo Alto CEO Nikesh Arora told Jim in a “Mad Money” interview that he wasn’t concerned about Microsoft products because they’re for an area of the cybersecurity market that his company has been in for years. Jim said he was not worried about Wednesday’s sell-off and still sees PANW as the best way to play cybersecurity. PANW is expected to issue earnings late next month. LLY mountain 2023-06-30 Eli Lilly stock performance since June 30 close Eli Lilly (LLY) shares fell 4% in the first two weeks of July. Shares of the pharmaceutical company have recently been pressured after a Reuters report that cited a study that found most patients using weight loss drugs like Novo Nordisk ‘s (NOVO) Ozempic, stop within a year. Another article last week reported that several patients using Ozempic had thoughts of suicide or self-harm. These headlines were negative read-throughs to Club holding Lilly, which makes the diabetes drug Mounjaro that’s being reviewed for obesity by regulators. Although we cannot fault anyone who wants to take profits in Eli Lilly after another stretch of significant outperformance (up 28% in the first half of 2023), we think the selloffs from both stories will prove to be overreactions. Lilly started to claw back some of its recent losses in a good session Friday. Jim maintains that Lilly’s Mounjaro will be the best-selling drug in history and that investors should not sell LLY stock. He also likes the company’s pipeline which includes a potential Alzheimer’s treatment, which would be a huge win for the company long term. Lilly is due to report its quarter Aug. 8. JNJ mountain 2023-06-30 Johnson & Johnson stock performance since June 30 close Johnson & Johnson was under pressure to kick off the second half, falling nearly 3.5% month to date and there are a couple of reasons for that. Health care is an out-of-favor defensive sector in a market attracting high-growth tech names. The other headwind : The company is awaiting the outcome of a pivotal talc trial. The verdict, which is expected any day now, could determine whether the many plaintiffs suing the company elsewhere will accept or reject J & J’s settlement offer of $8.9 billion. The ongoing legal disputes have been an overhang on J & J all year as the stock fell more than 6% in the first half. Given the uncertainty, we have held off on buying more of the drug maker. The talc trials have someone dimmed the light on the separation of its consumer products division from its pharmaceutical and medical technology units, which we viewed as a positive for shareholders. J & J reports earnings this coming Thursday. (Jim Cramer’s Charitable Trust is long HAL, META, CRM, LLY, PANW, FL, PXD, CTRA, MSFT, NVDA, JNJ, AAPL. 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.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 12, 2023.

Brendan McDermid | Reuters

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

Post By Oil and Gas Advanced Micro Devices Inc, Apple Inc, Bausch Health Companies Inc, Breaking News: Markets, Breaking News: Technology, business news, Coterra Energy Inc, DoorDash Inc, Investment strategy, Kellogg Co, Markets, Microsoft Corp, Oil and Gas, Parker-Hannifin Corp, Peloton Interactive Inc, Royal Caribbean Cruises Ltd, Technology

My top 10 things to watch Friday, May 5 1. Club holding Apple (AAPL) delivered better-than-expected quarterly results Thursday, with its installed base of active devices expanding to more than 2 billion. Apple’s board authorized a program to repurchase up to $90 billion worth of stock, while raising its quarterly dividend to 24 cents a share. 2. A slate of banks increased their price targets on Apple on Friday. These included Morgan Stanley, which raised its target to $185 per share, from $180, and Deutsche Bank which lifted its target to $180, from $170. Both firms reiterated the equivalent of buy ratings. Piper Sandler, meanwhile, was an outlier — lowering its price target on Apple to $180, from $195, even as it maintained an overweight rating on shares. 3. Shares of Club name Advanced Micro Devices (AMD) closed up more than 6% Thursday on a Bloomberg report that Microsoft (MSFT), another Club stock, is helping the chipmaker expand into artificial intelligence processors. 4. Club holding Coterra Energy ( CTRA) delivered a first-quarter earnings beat Thursday, while reaffirming its commitment to regularly return at least half of its free cash to shareholders. Currently, Coterra said it plans to return a total of $420 million to shareholders, representing about 76% of its free cash flow in the first quarter. 5. Barclays raised its price target on Bausch + Lomb (BLCO) to $18 a share, from $17, citing its “attractive growth profile.” The firm maintained an equal weight rating on BLCO shares. The eye-health products company holds the key to saving Club holding Bausch Health (BHC), which is in the process of unravelling its majority stake . 6. JPMorgan raised its price target on Kellogg (K) to $72 a share, from $68, while upgrading its rating to neutral, from underweight. The firm cited improved fundamentals at the food manufacturing giant. 7. DoorDash (DASH) received three price target raises following strong first-quarter earnings. Barclays increased its target to $75 a share, from $70, and maintained an equal weight rating. UBS lifted to $70 a share, from $68, maintaining a neutral rating. Oppenheimer raised to $85 a share, from $80, and reiterated an outperform rating. 8. Shares of Peloton Interactive (PTON) closed down more than 13% Thursday after the company reported a greater-than-expected loss for its fiscal third quarter — though, the reason why remains impenetrable. 9. Manufacturing firm Parker-Hannifin (PH) delivered a quarterly earnings beat Thursday, and there is no sign of a slowdown. Baird on Friday raised its price target on PH to to $415 a share, from $411, while maintaining an outperform rating on the stock. 10. Wells Fargo raised its price target on Royal Caribbean Cruises (RCL) to $88 a share, from $78, and kept its overweight rating on the stock. The firm cited “robust” cruise demand and RCL management’s solid execution following the company’s first-quarter results. (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 Friday, May 5

1. Club holding Apple (AAPL) delivered better-than-expected quarterly results Thursday, with its installed base of active devices expanding to more than 2 billion. Apple’s board authorized a program to repurchase up to $90 billion worth of stock, while raising its quarterly dividend to 24 cents a share.

2. A slate of banks increased their price targets on Apple on Friday. These included Morgan Stanley, which raised its target to $185 per share, from $180, and Deutsche Bank which lifted its target to $180, from $170. Both firms reiterated the equivalent of buy ratings. Piper Sandler, meanwhile, was an outlier — lowering its price target on Apple to $180, from $195, even as it maintained an overweight rating on shares.

3. Shares of Club name Advanced Micro Devices (AMD) closed up more than 6% Thursday on a Bloomberg report that Microsoft (MSFT), another Club stock, is helping the chipmaker expand into artificial intelligence processors.

4. Club holding Coterra Energy (CTRA) delivered a first-quarter earnings beat Thursday, while reaffirming its commitment to regularly return at least half of its free cash to shareholders. Currently, Coterra said it plans to return a total of $420 million to shareholders, representing about 76% of its free cash flow in the first quarter.

5. Barclays raised its price target on Bausch + Lomb (BLCO) to $18 a share, from $17, citing its “attractive growth profile.” The firm maintained an equal weight rating on BLCO shares. The eye-health products company holds the key to saving Club holding Bausch Health (BHC), which is in the process of unravelling its majority stake.

6. JPMorgan raised its price target on Kellogg (K) to $72 a share, from $68, while upgrading its rating to neutral, from underweight. The firm cited improved fundamentals at the food manufacturing giant.

7. DoorDash (DASH) received three price target raises following strong first-quarter earnings. Barclays increased its target to $75 a share, from $70, and maintained an equal weight rating. UBS lifted to $70 a share, from $68, maintaining a neutral rating. Oppenheimer raised to $85 a share, from $80, and reiterated an outperform rating.

8. Shares of Peloton Interactive (PTON) closed down more than 13% Thursday after the company reported a greater-than-expected loss for its fiscal third quarter — though, the reason why remains impenetrable.

9. Manufacturing firm Parker-Hannifin (PH) delivered a quarterly earnings beat Thursday, and there is no sign of a slowdown. Baird on Friday raised its price target on PH to to $415 a share, from $411, while maintaining an outperform rating on the stock.

10. Wells Fargo raised its price target on Royal Caribbean Cruises (RCL) to $88 a share, from $78, and kept its overweight rating on the stock. The firm cited “robust” cruise demand and RCL management’s solid execution following the company’s first-quarter results.

(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)

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

Post By Oil and Gas Advanced Micro Devices Inc, Breaking News: Markets, business news, Cigna Corp, Constellation Brands Inc, Coterra Energy Inc, EQT Corp, Humana Inc, Intel Corp, Investment strategy, Lincoln National Corp, Markets, Microsoft Corp, Netflix Inc, NVIDIA Corp, Oil and Gas, Range Resources Corp, Southwestern Energy Co, Technology, Tesla Inc, UnitedHealth Group Inc, Walt Disney Co

My top 10 things to watch Tuesday, April 11 1. Truist Bank downgraded natural gas producer EQT Corporation (EQT) to hold from buy, while lowering its price target to $28 per share, from $41, on “potentially lower volumes.” Meanwhile, the bank raised its price target on Club holding Coterra Energy (CTRA) to $29 per share, from $26, on the expectation the oil-and-gas producer will “significantly outperform” the broader market in the second half of the year and in 2024. Truist maintained a hold rating on Coterra. 2. Barclays cut its price target on Club holding Constellation Brands (STZ) to $277 per share, from $279, while maintaining an overweight rating. The move is somewhat meaningless given how far the target is from where the stock is, with shares of STZ closing at $224.60 apiece on Monday. The bank also lowered its price target on Lincoln National (LNC) to $20 per-share, from $29, while maintaining an equal weight rating. 3. JPMorgan is positive on Netflix (NFLX) going into its first-quarter earnings, but sees a risk to the second quarter due to its new paid-sharing policy. The bank maintained a price target of $390 per share, along with an overweight rating. 4. Wells Fargo upgraded natural gas exploration-and-production group Range Resources (RRC) to overweight from equal weight, while raising its price target to $31 per share, from $30. The bank expects RRC to “relatively outperform” other gas players in a weak gas price environment. Meanwhile, the bank downgraded Southwestern Energy (SWN) to underweight, or sell, from equal weight, while lowering its price target to $5 per share, from $6 — largely a result of limited capital returns and weak cash flow generation. 5. Guggenheim lowered its price target on Club holding Walt Disney (DIS) to $130 a share, from $140, on the back of moderating growth at its parks and resorts — a target that is very far off. Shares of Disney closed at $100.81 apiece on Monday. 6. Citi reiterated neutral ratings on chipmakers Intel (INTC) and Club holding Advanced Micro Devices (AMD), a result of ongoing weak cloud demand. Still, computer notebook shipments were up 41% in March, month-over-month, 18% above Citi’s estimate. 7. KeyBanc raised its price target on Club holding Nvidia (NVDA) to $320 per share, from $280, citing strengthening demand for artificial intelligence (AI).The semiconductor firm’s graphics processing units (GPUs) have proven central to the proliferation of AI , which reached a tipping point late last year with the launch of OpenAI’s viral chatbot, ChatGPT. 8. Morgan Stanley raised its price target on Club holding Humana (HUM) to $637 per share, from $620, saying the health insurer has “the strongest earnings growth story in managed care through 2025.” The bank maintained an overweight, or buy, rating on the stock. But Morgan Stanley chose UnitedHealth (UNH) as its top pick in the sector, replacing Cigna (CI). 9. UBS lowered its growth estimates on Club holding Microsoft ‘s (MSFT) Azure cloud business, suggesting customers will continue to cut back on cloud spending amid slower economic growth. The bank maintained a neutral rating and price target of $275 per share. 10. Despite recent price cuts, electric vehicle maker Tesla (TSLA) should be able to maintain “industry leading” operating margins and is better positioned than competitors to navigate economic headwinds, Baird argued. The firm maintained an outperform, or buy, rating and price target of $252 per share. (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 Tuesday, April 11

1. Truist Bank downgraded natural gas producer EQT Corporation (EQT) to hold from buy, while lowering its price target to $28 per share, from $41, on “potentially lower volumes.” Meanwhile, the bank raised its price target on Club holding Coterra Energy (CTRA) to $29 per share, from $26, on the expectation the oil-and-gas producer will “significantly outperform” the broader market in the second half of the year and in 2024. Truist maintained a hold rating on Coterra.

2. Barclays cut its price target on Club holding Constellation Brands (STZ) to $277 per share, from $279, while maintaining an overweight rating. The move is somewhat meaningless given how far the target is from where the stock is, with shares of STZ closing at $224.60 apiece on Monday. The bank also lowered its price target on Lincoln National (LNC) to $20 per-share, from $29, while maintaining an equal weight rating.

3. JPMorgan is positive on Netflix (NFLX) going into its first-quarter earnings, but sees a risk to the second quarter due to its new paid-sharing policy. The bank maintained a price target of $390 per share, along with an overweight rating.

4. Wells Fargo upgraded natural gas exploration-and-production group Range Resources (RRC) to overweight from equal weight, while raising its price target to $31 per share, from $30. The bank expects RRC to “relatively outperform” other gas players in a weak gas price environment. Meanwhile, the bank downgraded Southwestern Energy (SWN) to underweight, or sell, from equal weight, while lowering its price target to $5 per share, from $6 — largely a result of limited capital returns and weak cash flow generation.

5. Guggenheim lowered its price target on Club holding Walt Disney (DIS) to $130 a share, from $140, on the back of moderating growth at its parks and resorts — a target that is very far off. Shares of Disney closed at $100.81 apiece on Monday.

6. Citi reiterated neutral ratings on chipmakers Intel (INTC) and Club holding Advanced Micro Devices (AMD), a result of ongoing weak cloud demand. Still, computer notebook shipments were up 41% in March, month-over-month, 18% above Citi’s estimate.

7. KeyBanc raised its price target on Club holding Nvidia (NVDA) to $320 per share, from $280, citing strengthening demand for artificial intelligence (AI).The semiconductor firm’s graphics processing units (GPUs) have proven central to the proliferation of AI, which reached a tipping point late last year with the launch of OpenAI’s viral chatbot, ChatGPT.

8. Morgan Stanley raised its price target on Club holding Humana (HUM) to $637 per share, from $620, saying the health insurer has “the strongest earnings growth story in managed care through 2025.” The bank maintained an overweight, or buy, rating on the stock. But Morgan Stanley chose UnitedHealth (UNH) as its top pick in the sector, replacing Cigna (CI).

9. UBS lowered its growth estimates on Club holding Microsoft‘s (MSFT) Azure cloud business, suggesting customers will continue to cut back on cloud spending amid slower economic growth. The bank maintained a neutral rating and price target of $275 per share.

10. Despite recent price cuts, electric vehicle maker Tesla (TSLA) should be able to maintain “industry leading” operating margins and is better positioned than competitors to navigate economic headwinds, Baird argued. The firm maintained an outperform, or buy, rating and price target of $252 per share.

(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)

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Why we still like Coterra Energy despite the recent fall in natural gas prices

Post By Oil and Gas Breaking News: Markets, business news, Coterra Energy Inc, Devon Energy Corp, Energy, Halliburton Co, Investment strategy, Jim Cramer, Markets, Natural Gas (Feb'23), Pioneer Natural Resources Co

Natural gas prices jumped Thursday following a multiweek swoon, providing a lift to shares of Club holding Coterra Energy (CTRA), which lately has relied on the commodity for more than half its operating revenues. U.S. natural gas prices rose nearly 4% Thursday to roughly $3.81 per million British thermal units (MMBtu). Coterra shares climbed nearly 3% to over $25 apiece. Thursday’s natural gas gains — on top of a 0.88% jump on Wednesday — reverse some of its recent losses. But only partially. As recently as Dec. 15, U.S. natural gas prices settled at nearly $7 per million British thermal units. So far in 2023, natural gas remains down around 12%. Unusually warm winter weather across the U.S. and Europe is a major culprit for the falling prices. Demand for natural gas fell in response, with less of it is needed to heat homes. Proof is in the data. The amount of working gas in storage actually rose 11 billion cubic feet in the week ended Jan. 6, the U.S. Energy Information Administration said Thursday. That’s the first weekly inventory build in January on record, according to FactSet. Of course, the price of natural gas matters to consumers and their energy bills. It also matters greatly to investors in Houston-based Coterra, the product of a 2021 merger between Cabot Oil & Gas and Cimarex Energy. Coterra has the most natural gas exposure of the three exploration and production (E & P) firms in the Club portfolio, with the commodity accounting for nearly 58% of its operating revenue through the first three quarters of 2022; fourth-quarter results aren’t out yet. Pioneer Natural Resources (PXD), by contrast, has generated 11% of its operating revenue from natural gas over the same span. That figure is roughly 14% for Devon Energy (DVN). Oil and natural gas liquids are the other major products all three E & P companies sell. In a very basic sense, the higher the price of natural gas, the more money Coterra can make from its operations — which ultimately influences the company’s free cash flow and, by extension, its dividend payment. But the company’s realized price in a quarter can be different than the average market prices over that same timeframe. This is because companies like Coterra will enter into agreements to sell natural gas or oil at a predetermined price at a future date. Sometimes, that agreed-upon price will be higher than the market price on that day. Other times, it will be lower. This is what determines the difference between a company’s realized price and the spot price of the commodity in question. Coterra investors still pay attention to the swings in natural gas prices. The company’s sales are not fully hedged, so what happens to market prices does impact the amount of revenue it generates. In an interview with Jim Cramer earlier this week, Coterra CEO Tom Jorden sought to downplay worries about natural gas price declines. “Prices are constructive on both oil and gas, and our returns are really extraordinary at current conditions,” he said Tuesday night. The Club and other shareholders care a great deal about those returns. Coterra employs a fixed-plus-variable dividend, so the payout changes quarterly based on the company’s free cash flow in the trailing three months. The company has committed to returning at least 50% of its free cash flow each quarter to shareholders. Including dividends and stock buybacks, Coterra returned 74% of free cash flow in the third quarter and 80% in the second quarter. At Wednesday’s closing price of $24.69 per share, Coterra’s dividend yield stood at roughly 11%, based on its most recent payout of 68 cents on Nov. 30 . “We can never predict the price going forward, but we can control being good at the business, being disciplined in our investments and managing a prudent, healthy balance sheet,” Jorden told Jim. No doubt, predicting the price of volatile commodities is a tough task. But agencies and research firms still do so. In its short-term outlook issued Tuesday, the U.S. EIA forecasted natural gas prices to average $4.90 per MMBtu this year, down nearly 10% from its prior projection of $5.43. Through the first nine months of 2022, Coterra’s realized natural gas price was $4.79 per MMBtu. This is notable because even though natural gas soared to over $9 per MMBtu at times in the spring and summer of last year, Coterra’s realized sale price wasn’t nearly as high as market prices. This helps explain why the Club hasn’t run for the hills as natural gas prices fell in recent weeks. Volatility is to be expected, and we know Coterra is able to maintain a very attractive dividend even if commodity prices are a bit lower than where they were in 2022. In a very uncertain market environment, being invested in companies that return significant capital to shareholders is a good place to be. Jim said Wednesday morning he believed Coterra was worth buying at current levels, due in part to reassurances Jorden provided on recent reserve write-downs at the company. Elsewhere in energy, the Club trimmed its position in oilfield services Halliburton (HAL) on Thursday. While we still like the stock overall, we wanted to be disciplined due to its recent strength and book some profits. (Jim Cramer’s Charitable Trust is long CTRA, DVN, PXD and HAL . 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.

Pipes at the landfall facilities of the ‘Nord Stream 1’ gas pipeline are pictured in Lubmin, Germany, March 8, 2022.

Hannibal Hanschke | Reuters

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