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

1. Wall Street is looking at a higher open after Monday’s mixed session, which saw the Dow touch a new all-time high but not close that high. The Fed begins its two-day September meeting Tuesday. A quarter-point interest rate cut versus a half-point cut is what’s being debated in the market. Eighty-four percent of the respondents to the CNBC Fed Survey predict a quarter-point move.

2. Perhaps more evidence for the smaller cut, retail sales for August were stronger than expected. Industrial production and capacity utilization, which is a reflection on U.S. manufacturing health, were also stronger.

3. Club name Microsoft announced a 10% increase in its quarterly dividend and approved a new $60 billion stock buyback program. Morgan Stanley research analysts said the dividend boost is in-line with increases over the past nine years. Deutsche Bank said the plan signals that management is “committed to profitable growth.”

4. Embattled Intel shares jumped 7% after the chipmaker late Monday announced plans to turn its manufacturing foundry business into an independent unit. It will have its own board and the potential to raise outside capital. Intel said, separately, that it entered a deal with cloud computing giant Amazon Web Services to produce custom AI semiconductors. Amazon is a big customer of Intel chips to power its AWS servers.

5. Deutsche Bank sees Club name Amazon as a big winner should a White House trade proposal targeting Chinese discount retailers Shein and Temu, and others, go through. The plan would restrict the use of a U.S. trade loophole.

6. Amazon’s booming everyday essentials business requires investor patience. Amazon is taking a short-term financial hit to grow its business for these products, with a plan to improve profitability down the road.

7. In other Amazon developments, Prime’s Big Deal Days is coming back and set for Oct. 8-9; and CEO Andy Jassy told employees in a memo the company is returning to pre-Covid, five days a week in the office.

8. Citi cut its Micron price target to $150 per share from $175 but kept its buy rating. The analysts expect below consensus numbers when Micron reports quarterly earnings next week. They cite weakness in DRAM, dynamic random access memory, which is a type of semiconductor memory.

9. JPMorgan cut its Qualcomm price target to $210 per share from $230 but kept its buy rating. The analysts said, however, that Qualcomm is about to lose modem revenue as Club name Apple continues efforts to make and source mobile components in-house.

10. Bank of America upgraded Hewlett Packard Enterprise to a buy rating with a $24 price target. Analysts touted a slew of catalysts ahead, including cost synergies from its upcoming Juniper Networks acquisition. Also in the server market, Mizuho Securities started coverage of Dell with an outperform.

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