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

Pedestrians walk past the American multinational skincare, and beauty products brand, Estée Lauder (Estee Lauder) logo seen in Hong Kong.

Budrul Chukrut | Lightrocket | Getty Images

My top 10 things to watch Monday, Feb. 5

1. Federal Reserve Chair Jerome Powell said in an interview that aired Sunday on “60 Minutes” that the central bank is not cutting rates any time soon, and would likely move at a slower pace than the market is expecting. This end of the soft landing discussion. We no longer need a landing. “We want to see more evidence that inflation is moving sustainably down to 2%,” Powell added. “Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.”

2. Stock futures were down slightly Monday following Powell’s comments, which followed the Fed’s decision to keep rate unchanged last week. The three major averages are coming off their fourth consecutive week of gains.

3. It’s another busy week of earnings, with eight stocks from the portfolio reporting, starting with Estee Lauder on Monday before the bell. The luxury cosmetics company leaped 15% after beating earnings and sales expectations. EL is “at an inflection point” so it is up. CEO Fabrizio Freda calls the bottom. If you look at the trajectory of the company, implies worst is behind. Sales better than expected — margins not cut. We’ll send our full analysis of the release after we hear from the management team.

4. Chinese policymakers have pledged to get stocks up and to get a plan to bring in foreign investment. Money has been pulled out relentlessly, even as the goods are still wanted and still cheap. The value of stocks in China and Hong Kong have lost about $7 trillion in value since peaking in early 2021, according to Bloomberg.

5. In my Sunday column, I talked about Apple stock and why it’s still worth holding. I share some of my insight from talking to CEO Tim Cook last week before the post-earnings conference call. Hint: He’s very focused on a lot of things to keep customers loyal to Apple.

6. Caterpillar inventories clean beat. Will crush the shorts today, unless they can make up something real fast. Shares of the heavy machinery maker rose more than 4% in the premarket after reporting EPS of $5.23 for the fourth quarter.

7. McDonald’s looks good, except revenue took a hit due to the conflict in the Middle East. The fast food chain posted earnings of $2.95 per share, excluding items, on $6.41 billion in revenue. Analysts had expected $2.82 per share on $6.45 billion in revenue, according to data from LSEG.

8. Meta Platforms stock is on fire, soaring 20% on Friday to a new all-time high after the social media giant reported strong quarterly results. How much of that gain was the company declaring its first-ever dividend? How much was the realization that the metaverse is no longer as big a loss?

9. Did The Wall Street Journal get Elon Musk? Is the Tesla CEO finished? They really got him. An investigative report published over the weekend claims board members have done drugs with Musk, reaped hundreds of millions of dollars from stock awards and other investments.

10. MoffettNathanson hits “pause” on Take-Two, downgrades to neutral from buy. The analyst says the next two years will be exciting with new releases, but most of this is well understood and priced into the stock.

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