The top 10 things to watch in the stock market Thursday

Our top 10 things to watch Thursday, Oct. 19 1. Stock futures are muted this morning following Wednesday’s 1.34% decline in the S & P 500 as the 10-year Treasury yield continues its march to 5%. Oil is dipping today. All eyes on Federal Reserve Chair Jerome Powell’s talk at noon ET. 2. Netflix (NFLX) is the easy earnings winner this week after reporting an increase of 8.76 million million subscribers in the third quarter. Clearly the company’s password crackdown and launch of an ad-supported tier are working. Truist upgrades shares to buy from hold, JPM raises its price target to $480 from $455, and Goldman stays neutral but increases PT to $400 from $390. 3. Tesla (TSLA) with a rare double miss on revenues and earnings. Morgan Stanley’s Adam Jonas says the earnings call “was one of the most cautious Tesla conference calls we’ve heard in years” due to the difficult macroenvironment and ramp of the Cybertruck. Morgan Stanley lowers its PT to $380 from $400. 4. Strong numbers from Las Vegas Sands (LVS), beating expectations in both Macao and Singapore. The company announced a $2 billion stock repurchase program. Good read-through for Wynn Resorts (WYNN). These stocks have been crushed recently but the fundamentals have stayed positive. 5. Disney (DIS) filed an 8-K last night to show its new segment reporting structure of Entertainment, Sports, and Experiences. The main takeaway is that ESPN is doing much better than what most anticipated, supporting the view that Disney has a lot of options on what it can do with this part of the business. 6. More consolidation in oil on the way? Bloomberg says Devon Energy (DVN) has held preliminary talks about a combination with Marathon Oil (MRO). 7. Congratulations to Costco CEO Crag Jelinek for a successful run at the top of the company. He’ll be stepping down next January with COO Ron Vachris succeeding him. The news doesn’t change a thing about Costco (COST). 8. What the heck happened to Morgan Stanley shares on Wednesday after beating on earnings? Oppenheimer says the stock overreacted to a miss in wealth management, which represents 15% of total revenues. Says buy the dip. We did just that shortly after the earnings call. 9. Jefferies shakes up some of its cybersecurity ratings, upgrading Zscaler (ZS) and CrowdStrike (CRWD) to buys but downgrades Fortinet (FTNT) to hold. 10. Deutsche Bank starts coverage on U.S. restaurant stocks: Top picks are Chipotle (CMG), Starbucks (SBUX), and Domino’s (DPZ). Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

The Netflix logo is shown on one of their Hollywood buildings in Los Angeles, California, July 12, 2023.

Mike Blake | Reuters

1. Stock futures are muted this morning following Wednesday’s 1.34% decline in the S&P 500 as the 10-year Treasury yield continues its march to 5%. Oil is dipping today. All eyes on Federal Reserve Chair Jerome Powell’s talk at noon ET.  

2. Netflix (NFLX) is the easy earnings winner this week after reporting an increase of 8.76 million million subscribers in the third quarter. Clearly the company’s password crackdown and launch of an ad-supported tier are working. Truist upgrades shares to buy from hold, JPM raises its price target to $480 from $455, and Goldman stays neutral but increases PT to $400 from $390. 

3. Tesla (TSLA) with a rare double miss on revenues and earnings. Morgan Stanley’s Adam Jonas says the earnings call “was one of the most cautious Tesla conference calls we’ve heard in years” due to the difficult macroenvironment and ramp of the Cybertruck. Morgan Stanley lowers its PT to $380 from $400. 

4. Strong numbers from Las Vegas Sands (LVS), beating expectations in both Macao and Singapore. The company announced a $2 billion stock repurchase program. Good read-through for Wynn Resorts (WYNN). These stocks have been crushed recently but the fundamentals have stayed positive. 

5. Disney (DIS) filed an 8-K last night to show its new segment reporting structure of Entertainment, Sports, and Experiences. The main takeaway is that ESPN is doing much better than what most anticipated, supporting the view that Disney has a lot of options on what it can do with this part of the business. 

6. More consolidation in oil on the way? Bloomberg says Devon Energy (DVN) has held preliminary talks about a combination with Marathon Oil (MRO). 

7. Congratulations to Costco CEO Crag Jelinek for a successful run at the top of the company. He’ll be stepping down next January with COO Ron Vachris succeeding him. The news doesn’t change a thing about Costco (COST).

8. What the heck happened to Morgan Stanley shares on Wednesday after beating on earnings? Oppenheimer says the stock overreacted to a miss in wealth management, which represents 15% of total revenues. Says buy the dip. We did just that shortly after the earnings call.

9. Jefferies shakes up some of its cybersecurity ratings, upgrading Zscaler (ZS) and CrowdStrike (CRWD) to buys but downgrades Fortinet (FTNT) to hold.

10. Deutsche Bank starts coverage on U.S. restaurant stocks: Top picks are Chipotle (CMG), Starbucks (SBUX), and Domino’s (DPZ). 

 Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free

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

As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER.  NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.  NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.