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

1. The S&P 500 is set for a muted open after the April wholesale inflation report came in hotter than expected. The producer price index rose 0.5% month over month, compared with the Dow Jones estimate of 0.3%. Bonds aren’t moving too much on the report, probably because the March PPI was revised to a 0.1% decline after a 0.2% gain was initially reported. The consumer price index report on Wednesday morning is the main event of the week.

2. The meme stocks are back: Shares of video game retailer GameStop surged 130% higher in the premarket while movie theater chain AMC rose 110%. Both are coming off big gains Monday following a post on X from “Roaring Kitty,” who is credited with leading the stock’s dramatic short squeeze in 2021. I was thinking the CEOs of GameStop and AMC should just risk the wrath of the SEC and sell a billion dollars worth of shares right now. Turns out, AMC acted on the move, raising $250 million on Monday.

3. Home Depot on Tuesday reported a miss on sales as many customers put off home projects due to higher interest rates. But is it really a miss or did everyone know it would be a miss given home turnover has been so low? Coiled spring if rates go down? Maybe that’s why the stock hasn’t taken a hit. The home improvement retailer did reaffirm its full-year guidance.

4. JPMorgan upgraded Planet Fitness to buy from hold and expressed confidence in long-term growth, driven in part by higher pricing for new members to the gym chain. I wish I could be so positive on it. 

5. Roblox was downgraded to a hold from buy at Roth MKM, noting the company’s miss on first-quarter bookings and cut to its 2024 guidance were disappointing. The firm said it needs more confidence in management’s ability to return and maintain 20% annual sales growth. I was surprised by Roblox’s results last week.

6. Jefferies tweaks its price target on Club name Constellation Brands to $311 a share from $314, implying about 20% upside from Monday’s close. Despite the change, analysts say the Modelo and Corona parent is doing great and they like the strategy. In the same note, based on a biannual distributors survey, the firm upgrades Sam Adams parent Boston Beer to a buy.

7. Wells Fargo takes its Nvidia price target to $1,150 a share from $970. There’s been a number of PT bumps for the leading AI chipmaker lately, but they haven’t really been working due to fear of its May 22 earnings report. Shares are basically flat over the past week.

8. Games Global, which develops and distributes online casino-style games, filed to withdraw its initial public offering. Tougher time for IPOs? How is that possible with the market so high?

9. Stifel cuts its price target on Ulta Beauty to $475 a share from $565 and reduced its same-store sales estimates, citing weakening beauty trends for mass beauty products. I still think this is the Kohl’s-Sephora partnership taking share.

10. Cowen lifts its price target on Gap $24 to $21, implying nearly 8% upside from where the stock closed Monday. Analysts have a hold rating on the stock. I think the Old Navy and Banana Republic parent is doing really well, and the stock is worth buying.

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