Jim Cramer's top 10 things to watch in the stock market Thursday
My top 10 things to watch Thursday, May 21 1. Stock futures are lower this morning. Why? Look no further than oil prices and Treasury
My top 10 things to watch Thursday, May 21 1. Stock futures are lower this morning. Why? Look no further than oil prices and Treasury yields. Both are higher after a reprieve yesterday. U.S. benchmark WTI crude is back above $100 a barrel. The 10-year yield is around 4.6%. Oil is back in control. Real thinking person's market. 2. Nvidia blew away the numbers again, and we raised our price target on the Club stock. Yet shares are flat this morning. I'm not buying the idea that Nvidia's gross margins are unsustainable. They could charge more because their chips are the best. Custom chips from fellow Club names Amazon and Alphabet don't hold their value like Nvidia's do. Might not matter tomorrow or next week. It will matter over the long haul. 3. Nvidia added $80 billion to its buyback authorization, on top of an existing $39 billion. It also upped its annual dividend payout to $1, up from 4 cents previously. A good start but Nvidia may need to do even more on shareholder returns like Apple did years before it. I know it sounds boring, but it worked for Apple and Nvidia will have lots of cash on hand. 4. SpaceX's IPO prospectus reads like StarTrek meets Star Wars. I love it. There's so much commercial business to do. I don't care about the losses. Club name Goldman Sachs will be leading the record-breaking deal with help from other big banks. Massive windfall for Goldman's investment banking business, the main reason we're in the stock.
5. OpenAI might be the next blockbuster debut. The ChatGPT creator is preparing to confidentially file for an IPO as soon as Friday. Goldman is working on that one too, CNBC reported. That positions OpenAI to beat main rival Anthropic to the public markets. The Wall Street Journal reported yesterday Anthropic is on track to turn its first ever operating profit this quarter thanks to its torrid growth. 6. How about one more for Goldman? The bank is serving as the lead financial advisor to AvalonBay in its all-stock merger with fellow apartment owner Equity Residential. The combined market cap of the two REITs would be $52 billion, with more than 180,000 units under their umbrella. Even more fees for Goldman yet shares trade at a ridiculously low 16 times earnings. Time for a market multiple. 7. Eli Lilly's next-generation weight-loss injectable retatrutide helped obesity patients lose 28% of their body weight on average in a late-stage trial. This more powerful drug may not be for everybody, but it helps Lilly build out a broader GLP-1 portfolio alongside injectable Zepbound and pill Foundayo. It's about options. Clear leader over Novo Nordisk. 8. Walmart is feeling the pinch of high gas prices. It delivered an outlook miss, blaming pain at the pump for making consumers more cautious. Walmart earnings matched and revenue beat in the first quarter. Shoppers sought out value. Shares are down roughly 2.5% his morning. 9. Inflation rollback: Kroger CEO Greg Foran tells Bloomberg he's going to cut prices, the biggest in years.
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