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

1. Bond yields shot higher Tuesday to roughly 4.28% on the 10-year Treasury after bigger-than-expected consumer price index increases for January. Stocks accelerated their declines. The data was more evidence the Federal Reserve should not cut interest rates anything soon. I think a May rate cut is off the table. We want the Fed to hold off because the economy is just too strong.
2. Hot, hot, hot: Headline CPI month over month in January was up 0.3% versus 0.2% expected, and up 3.1% year over year versus up 2.9% expected. Core rate, excluding food and gas prices, was up 0.4% month over month versus up 0.3% expected, and up 3.9% year over year in line with estimates.
3. Coca-Cola beat on revenue and matched estimates on earnings per share in the fourth quarter. Higher prices helped offset lower volume in North America. PepsiCo saw similar soft demand in North America. We’ve been saying for a while now that the new GLP-1 injectable weight loss and diabetes drugs from Novo Nordisk and Club name Eli Lilly could eventually hurt soda and snack food companies.
4. Biogen’s quarterly earnings and revenue missed. Guidance was a little conservative. The big issues: falling multiple sclerosis drug sales and costs associated with its problematic Alzheimer’s drug Aduhelm. Instead, Biogen is pushing Leqembi for Alzheimer’s. Eli Lilly’s similar drug, donanemab, is awaiting FDA approval.
5. Jefferies raises Eli Lilly price target to $853 per share from $814 and keeps its buy rating. Orforglipron is “vital to Lilly’s GLP-1 strategy, and one of the few meaningful ways LLY’s obesity portfolio differentiates” from Novo Nordisk. Orforglipron is a weight-loss pill still going through clinical trials.
6. Stifel hikes Palo Alto Networks price target to $410 per share from $280, a catch-up call for sure as the stock keeps hitting records. Palo Alto shares closed Monday at around $372, pretty close to Friday’s all-time high of nearly $381. Stifel sees an “in-line to modestly above print and at least a reaffirmed guide.” Palo Alto reports earnings next week.
7. UBS raised Club name Nvidia price target to $850 per share from $580 and keeps buy rating. The analysts said they’re bullish heading into earnings next week.
8. Morgan Stanley said Club name Disney‘s participation in a sports streaming bundle is a “low-risk” proposition.
9. Bernstein reiterates hold-equivalent rating on Club name Apple. The analysts said Apple Services, like Apple Music and Apple TV+, have pricing power.
10. Morgan Stanley stands by its decision to make Club name Ford a top pick. The analysts said, “The continued slowdown of EV demand may cause legacy [original equipment manufacturers] to look for new ways to spend less and/or spread similar spending levels over higher combined volumes.”

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