Jim Cramer's top 10 things to watch in the stock market Wednesday

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My top 10 things to watch Wednesday, May 24

1. No debt ceiling deal with eight days to the earliest default deadline. The Dow, S&P 500 and Nasdaq are set for a lower open. Hot tech stocks taking a breather. But their incredible run in 2023 has us considering some trimming. Here’s how we’re considering going about it.

2. Mark Zuckerberg’s “year of efficiency” continues. Club name Meta Platforms (META) begins a third round of layoffs. I’ve been expecting more job cuts and continue to be impressed with Zuckerberg’s tech industry-leading shift to getting leaner.

3. Palo Alto Networks (PANW) blows away quarterly numbers and boosts guidance. It’s taking share from smaller companies while getting more efficient. Shares of the cybersecurity leader jump 5%. Balancing profits with growth allowed Palo Alto Networks to protect margins and excel despite macro headwinds.

4. Club fave Eli Lilly (LLY) has been getting clubbed by bogus stories of competition for weight loss. On Wednesday, Bank of America boosts LLY price target to $500 per share from $450. Keeps buy rating.

5. Abercrombie & Fitch (ANF) reports earnings-per-share of 39 cents versus expected 5-cent loss. Revenue beats and the company raises guidance. The stock surges 16%.

6. Similar story at Kohl’s (KSS): EPS of 13 cents versus expected 42-cent loss and a revenue beat. The company reiterates outlook. CEO Tom Kingsbury is starting to turn Kohl’s. Shares soar 13%. These specialty store earnings show a stronger consumer than the big chains. Either way, we like our retailers that provide great value.

7. Urban Outfitters (URBN) confident about second-quarter after good Q1 numbers. Free People and Anthropologie brands really strong. URBN is a real trend-bucker. The stock jumps 13%.

8. VF Corp (VFC) has its first positive quarter in a year. Benno Dorer is still temporary CEO. But I think that we have seen the bottom with the problems. Vans brand can turn in the fall. Shares up 3.5%.

9. Toll Brothers (TOL): Incredible strength in the million-dollar home segment. Much stronger and not deterred by higher rates. Quarterly good gross margins, too. Housing inflation remains sticky. Barclays raises price targets on other homebuilders.

10. Goldman Sachs calls Club holding Coterra Energy (CTRA) a buy with a $29-per-share price target. The analysts like strong financials and attractive valuation.

(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)

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