What Cramer is watching Monday — the 3 things driving the global sell-off in stocks
What I am looking at April 25, 2022 The worldwide sell-off, with China's Shanghai composite dropping more than 5% on Monday, is based on three things: 1) Ukraine-Russia War; 2) Nationwide lockdown coming in China; 3) Inflation and the need for aggressive rate hikes in United States. Secretary of State Antony Blinken and Secretary of Defense Lloyd Austin make "surprise visit" to Kyiv, ratcheting up war as the goal is to contain Russia to old borders. China's capital city of Beijing reported a spike in Covid cases over the weekend, and its business district began three days of mass testing. But China's vaccine doesn't last as long and offers little protection at this point versus the U.S. vaccines and the mix-and-match booster doses. U.S. inflation is now just out of control, period. Company conference calls with investors — other than tech — all show persistent problems and a lack of a desire to build plants to fix them. The U.S. is getting better at supply chain, but economy needs to slow down. Shares of Twitter (TWTR) jumped more than 5% in premarket trading Monday on reports the social media company is nearing a deal with Tesla (TSLA) CEO Elon Musk. Goldman downgrades Verizon (VZ), which really had a poor quarter, and upgrades AT & T (T). I don't understand the latter. Meanwhile, Warner Bros. Discovery (WBD) is down again as public sells stock ... and an easy short. Advanced Micro Devices (AMD) upgraded to a "strong buy" from a buy at Raymond James. Shares of this Club name traded at $161 not that long ago … now around $88. Getting attractive to buy back shares the Club sold. Marvell Technology (MRVL) upgraded to buy from hold. This chipmaker is the least impacted by global trends, but it has meant nothing. Deere (DE) cut to hold from buy at Bank of America. Odd given that the agricultural cycle is so powerful. Not top of cycle, but cautious due to slowdown in fertilizer orders. Bank of America reinstates Azek at neutral and starts Trex with a sell, sees "challenging outlook" after surge in 2021. Is this the beginning of the end of the housing cycle? Stephens takes Huntington Bancshares (HBAN) to buy from hold. We had CEO Steve Steinour on last week and the company is doing fabulously — 4.5% yield. One of the best banks to own. Reminds me of First Horizon (FHN). Renaissance in the heartland? Starbucks (SBUX) price target cut to $108 from $125 at Barclays, but analyst maintains its buy rating. I think numbers are too high as denominator of share count grows. Credit Suisse says stick with Microsoft (MSFT) despite headwinds. The Club is doing so. Itching to buy back stock we sold not that long ago to avoid the sell-off. Shares topped out in November with all the growth stocks. Recent Club addition Coterra Energy (CTRA) downgraded to hold at Susquehanna. Crucial company for liquefied natural gas. We will take the other side of the trade. But price targets raised for Devon Energy (DVN), EOG Resources (EOG), Pioneer Natural (PXD), Occidental Petroleum (OXY), and Diamondback Energy (FANG). Raymond James raises price target for APA Corp. to $75 from $59. Bernstein analyst Toni Sacconaghi with odd call saying there could be an upside surprise to sales and earnings when Apple (AAPL) reports later this week? Is this a set up for disappointment? It would make sense. Visa (V) reports this week. Citis lowers price target to $265 from $285 — a "chase down." So many of these. MasterCard (MA) cut to $435 from $445. There is nothing wrong with these, but a belief that the world must be slowing. Citi likes the catalyst-rich notion of owning Fortinet (FTNT) here. One of the strongest secular trends is to fight the cyber attackers. Our favorites remain Palo Alto Networks (PANW) and CrowdStrike (CRWD). PPG price target lowered to $180 from $200 at Baird, $155 from $180 at Deutsche Bank. Coca-Cola (KO) beat analysts' expectations on sales and earnings in recent quarter. I like but we know it is a snapshot in time. Citi likes HCA Healthcare (HCA) here and is now pricing in downside. The risk reward does seem good here after earnings debacle last week. Staffing shortages caused shortfall (unusual). Stanley Black & Decker (SWK) price target lowered to $180 from $230 at Barclays. Activision Blizzard (ATVI) misses — collapse in gaming? Bank of America lowers estimates for homebuilders. Homebuilder valuation attractive though …demand should moderate … earnings and margins peak-high mortgage .. Lennar (LEN), Pultegroup (PHM), Toll Brothers (TOL), KB Home (KBH). Semiconductor equipment supply worsens, but still early for demand cracks in most markets. Autos — lower production and higher commodity. Rentals best positioned. Second time estimates cut. Gap (GPS) upgraded to buy on compelling risk reward — Guggenheim. Shares are 70% off highs. Retailer could sell or spin off Athleta. Real estate value. E-commerce value. Snowflake (SNOW) initiated with a buy at Wolfe Research, says the software maker has potential "to become the 4 th hyperscaler." Otis Worldwide (OTIS) on tonight. Reports first-quarter adjusted EPS 77 cents, versus consensus 74 cents. Full year tightened range, sees organic sales up 3%-4% for fiscal year 2022. Shopify (SHOP) price target slashed to $1,000 from $1,300 at RBC Capital. Stifel cuts to $800 from $1,000. (Jim Cramer's Charitable Trust is long AAPL, AMD, CTRA, DVN, MRVL. 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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In this handout photo from the Ukrainian Presidential Press Office, U.S. Secretary of State Antony Blinken (2nd from left) and U.S. Defense Secretary Lloyd Austin (left) attend a meeting with Ukrainian President Volodymyr Zelensky on April 24, 2022 in Kyiv, Ukraine. Ukraine Presidential Press Service | Getty Images

What I am looking at April 25, 2022