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

1. The divergence on Wall Street continued Tuesday, with the Dow under pressure and the tech-heavy Nasdaq looking higher. For all of last week, the Dow lost 2.3%. The Nasdaq saw a weekly gain of 1.4% on Nvidia-driven gains. Ahead in this holiday-shortened week: We get earnings from Club names Salesforce, Best Buy, Foot Locker, and Costco. The Fed’s favorite inflation gauge is out Friday.
2. The Nvidia reassessment begins, with much higher price targets on Wall Street for the artificial intelligence chip giant. Shares were up another 3% after last week’s blowout quarter and surge above $1,000 each. Melius Research has been exceptional on this. The analysts pointed out that there’s still a “lotta value” in the Club name’s stock. They cited “robust margins” and “high earnings quality.” Melius said, “Nvidia’s next 12-month (NTM) PEG ratio stands at about 1.1 on conservative figures.” PEG is price to earnings divided by growth. Can Nvidia still be bought?
3. Along with Nvidia, the Club’s other “own it, don’t trade it” stock is Apple. Why did you sell Apple shares? China? UBS said, “iPhone shipments into China increased 52% in the month of April.” The analysts, however, said April is a seasonally slow month and the year-over-year increase only represents 1 million more units.
4. Citi upgraded DuPont to buy from neutral and raised its price target to $95 per share from $85. Barclays also hiked its price target on the Club stock to $85 per share from $81. Analysts at both firms are re-evaluating DuPont after last week’s announcement of its planned split into three companies.
5. GameStop shares rose more than 20% early Tuesday after the video game retailer announced Friday it made $933 million from a stock sale. Will GameStop start buying back stock? Is there anything this company won’t do?
6. Elon Musk’s artificial intelligence startup xAI raised $6 billion in funding at a $24 billion valuation.
7. Morgan Stanley sees CrowdStrike going to $100 billion in market value. It’s currently at nearly $85 billion. The analysts raised their price target to $422 per share from $372. They expect a strong quarter when numbers are released next week. In cybersecurity, the Club owns Palo Alto Networks, which has rebounded from a so-called bad quarter.
8. Elanco Animal Health is out with a new medicine that reduces methane emissions from cows.
9. Bank of America cut McDonald’s price target to $288 per share from $302. The analysts said sluggish trends have continued into the next quarter.
10. Truist upgraded Deckers Outdoor, home to UGGs and running shoe brand Hoka, to buy from hold and raised its price target to $1,200 per share from $1,011. The analysts cited “best-in-class momentum.” Better late than never? Truist also upgraded and raised PT on On Holding, saying the athletic shoe company is taking share from Nike.

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