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

1. The Nasdaq was looking to bounce at Tuesday’s open after having its worst session since April. The market flipped and tech fell out of favor. The Dow, which had been lagging the S&P 500 and Nasdaq, had a banner Monday and was heading into the new trading day on a five-session winning streak.
2. Whither Nvidia? A technical analysis read of the AI chip powerhouse’s stock chart shows support at $110 per share. Shares of the Club name bounced Tuesday after a three-session slide of 13% from its brief peak as the most valuable U.S. company to $118. Bank of America, however, added Nvidia to its beat ideas list.
3. The European Union accused Microsoft of breaching antitrust rules with the way it bundled Teams and Office products. Microsoft unbundled last year. The EU said it wasn’t enough. The Microsoft allegations came one day after EU regulators called out Apple over App Store rules. Both Apple and Microsoft are Club holdings.
4. Goldman Sachs starts both Club name Disney and CNBC parent company Comcast with buys. The analysts like the companies for their deep competitive moats on the media side of their businesses. The two companies are also the giants of the theme parks business. We recently looked at their expansion plans on both coasts.
5. Oppenheimer downgraded sleep apnea company Resmed to a hold rating from a buy. The analysts cited GLP-1 risk after Club name Eli Lilly late Friday delivered positive study data on the active ingredient in its new weight loss and diabetes drugs to treat sleep apnea. The analysts see a structural shift in patient preferences.
6. Is the CDK Global hack worse than we think? The company provides software to auto retailers and dealers, which are still experiencing disruptions and delays in the U.S. and Canada. Car companies, including Club name Ford, are trying to quantify exposure after last week’s cyberattack of CDK. Meanwhile, inventory is building.
7. Guggenheim starts electric automaker Rivian with a buy. The analysts see a “credible path” to profitable gross margins. They also believe an inflection point in the financials should support the stock.
8. Wells Fargo said to buy Capri (Versace, Jimmy Choo, and Michael Kors) with or without the buyout by Tapestry (Coach, Kate Spade, and Stuart Weitzman). The FTC is challenging the planned transaction. Capri shares are 45% below the $57-per-share deal price.
9. TD Cowen raises its Gap price target but keeps its hold rating. The analysts said its “early innings” of a turnaround orchestrated by CEO Richard Dickson. Cowen sees a good back-to-school assortment at Gap’s Old Navy brand. The company also owns the Athleta and Banana Republic chains.
10. Chipotle Mexican Grill stock splits 50-for-1 after Tuesday’s close and begins trading Wednesday on a post-split basis.

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