Jim Cramer’s top 10 things to watch Thursday: Inflation, Salesforce

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My top 10 things to watch Thursday, Dec. 1, 2022 1. New, seasonably bullish month starts higher after Wall Street closed out a strong November with a powerful Federal Reserve-driven rally Wednesday. Fed Chairman Jerome Powell says smaller interest rate hikes ahead are likely after four straight 75-basis-point increases. That’s despite Powell also adding he wants to see more progress on inflation. 2. The Fed’s favorite inflation gauge in October was cooler than estimates Thursday morning. Much better than the prior month. The government’s monthly employment report is out Friday. 3. Club holding Salesforce (CRM) saw the departure of co-CEO Bret Taylor, leaving co-founder Marc Benioff as sole CEO, again. The real reason for Taylor’s exit really has to do with the massive opportunity he has from his experience as Twitter chairman. Salesforce shares sink 7% in the premarket. But I think t his is an overreaction and overlooks solid quarterly results. 4. Wedbush says Microsoft (MSFT)- Activision Blizzard (ATVI) deal is going to work. Analysts there put about a six-month clock on to completion. That means ATVI shareholders would Lock in $95 per share, a 28% premium to Wednesday’s close. 5. Snowflake (SNOW): I think CEO Frank Slootman is being very conservative, with light guidance after better-than-expected earnings and revenue. The stock falls 2% in the premarket. Slootman was on “Mad Money” on Wednesday evening. The media and retail companies are using this data lake mining as best place to learn how to compete with the FAANGs. I know people think it is bad for CRM but I question whether it isn’t bad for Microsoft. Better analytics here though. Multiple price target cuts on Wall Street. 6. Club holding Costco (COST) is out with November sales figures: $19.17 billion, up 5.7% year over year. E-commerce sales fell 10.1% during the period. Shares drop in premarket. Costco will report its quarterly results this coming Tuesday after the closing bell. Shares of Costco drop nearly 3% in the prremarket. On those softer sales, we locked in a big profit on our favorite retail stock. 7. Five Below (FIVE) blowout quarter and stock jumps more than 9% in the premarket; in keeping with the discounter retailers. But not Dollar General (DG). Mixed third quarter. Current quarter outlook implies earnings-per-share of 7% to 8% compared to prior guidance of 12% to 14%. Big decline in growth rate. The stock drops 6%. 8. PVH Corporation (PVH) issues better than expected quarter. Why? Real buyers? The stock of the company behind the Tommy Hilfiger, Calvin Klein and Van Heusen brands jumps 10% in the premarket. 9. Barclay’s raises price target on Club holding Honeywel l (HON) to $229 per share from $212 and keeps overnight (buy) rating. Analysts there say HON’s “catalyst and technology business, represents ~7% of total revenues and has long been considered one of the company’s crown jewels.” 10. Okta (OKTA) shares surge 17% in the premarket after the identity cloud company reports a breakeven quarter when a 24-cent loss was expected. Revenue in Q3 of $481 million was also better than expected. Current quarter and full-year guidance raises. Wall Street analysts are divided, with some price target increases and some PT decreases. (Jim Cramer’s Charitable Trust is long CRM, MSFT, COST and HON. 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.My top 10 things to watch Thursday, Dec. 1, 2022

1. New, seasonably bullish month starts higher after Wall Street closed out a strong November with a powerful Federal Reserve-driven rally Wednesday. Fed Chairman Jerome Powell says smaller interest rate hikes ahead are likely after four straight 75-basis-point increases. That’s despite Powell also adding he wants to see more progress on inflation.

2. The Fed’s favorite inflation gauge in October was cooler than estimates Thursday morning. Much better than the prior month. The government’s monthly employment report is out Friday.

3. Club holding Salesforce (CRM) saw the departure of co-CEO Bret Taylor, leaving co-founder Marc Benioff as sole CEO, again. The real reason for Taylor’s exit really has to do with the massive opportunity he has from his experience as Twitter chairman. Salesforce shares sink 7% in the premarket. But I think this is an overreaction and overlooks solid quarterly results.

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