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

1. Shares of Club name Disney are falling nearly 8% after reporting Tuesday morning a slight revenue miss for its fiscal 2024 second quarter. The company’s guidance is not as bad as the stock sell-off seems to suggest.
2. Disney+ and Hulu together turned a profit in the quarter for the first time. Together with ESPN+, the streaming loss was much narrower: $18 million versus a $659 million loss in the year-ago period. All of streaming is expected to be profitable in the fiscal fourth quarter.
3. Our only other Club name reporting this week is Wynn Resorts, which releases its quarter after Tuesday’s closing bell. Analysts expect Wynn’s earnings per share of $1.27 versus 29 cents a year ago when China was not fully back from Covid. Revenue is seen increasing by about 26% to $1.79 billion.
4. U.S. stocks are little changed Tuesday, with the Dow Jones Industrial Average being held back by the post-earnings drop in Disney. Another Club name, Apple, is higher, bouncing back from Monday’s dip.
5. Apple stock soared last week after earnings but is still trying to shake off a rough 2024. Berkshire Hathaway‘s earnings release Saturday revealed that Warren Buffett trimmed Apple. But like the Club, he still loves it. Buffett’s Apple move exemplifies one of my rules to investing.
6. Apple has been developing chips to run artificial intelligence software in data centers, according to The Wall Street Journal. Tuesday’s report said the chips are for AI inference, not training AI models. This sheds some light on the tech giant’s AI plans, which are expected to be revealed next month at the company’s annual Worldwide Developers Conference.
7. Goldman Sachs hikes its Nvidia price target to $1,100 per share from $1,000. That’s a 19% premium to Monday’s close of $921. The analysts keep their buy rating on favorable risk-reward for the Club name.
8. Palantir shares sank 11% early Tuesday on weaker-than-expected full-year revenue guidance. However, artificial intelligence was strong. Quarterly revenue growth accelerated. The company’s customer count was up. Providing boot camps to let potential customers try their platforms. Incongruous to the stock reaction, several Wall Street shops boosted their price targets.
9. Federal regulators gave Tesla a deadline of July 1 to respond to their inquiries about the EV maker’s remedy to address a massive recall of its assisted-driver feature marketed as Autopilot. The National Highway Traffic Safety Administration has expressed concerns about whether the software fix that went out in December worked because Tesla has reported 20 more crashes since then.
10. Simon Property Group reports a blowout quarter, plus huge gains on selling its remaining investment in Authentic Brands Group. Sold ABG business for “gross proceeds of $1.45 billion,” Simon Property said in its press release.

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