What Cramer is watching Monday — October’s stock pop, tech reign over, China’s zero Covid

What I am looking at Monday, Oct. 31, 2022 Best month for the Dow Jones Industrial Average since 1976? The end of tech tyranny is allowing others to gain aplenty, particularly lean industrials primed for infrastructure or travel or climate change. Worst: Pain at bloated big cap industrials and semiconductors could continue. Morgan Stanley’s Mike Wilson says inflation has peaked; S & P 500 could go to 4,150 (more than 6% upside from Friday’s close). Wilson adds bonds and stocks may be pricing in too much hawkishness from the Federal Reserve, which gathers Tuesday and Wednesday. A 75-basis-point interest rate hike is expected for the fourth straight meeting. Goldman Sachs’ Jan Hatzius on Fed meetings: 75 in November, 50 in December, 25 in February 2023, and 25 in March; fed funds rate peaking at 4.75% to 5%. Will Club names Meta Platforms (META) and Alphabet (GOOGL) begin to cut back hiring and start laying people off? It’s in play after last week’s rough quarterly results. Larry Williams, one of our best Off the Charts columnists, called this entire market move. What will he have for us on “Mad Money” on Monday evening. Hint: It will be a treat on this Halloween. Club holding Wynn Resorts (WYNN) jumps 5% in the premarket after a 4.5% pop Friday. Billionaire restaurant and casino owner Tilman Fertitta has taken a 6.1% stake in Wynn, according to a SEC filing. Fertitta also owns the NBA’s Houston Rockets. From Reuters : Macao authorities reinstated tough Covid curbs, even as China announced a loosening of visa rules for visitors to the world’s biggest gambling hub starting Nov 1. China’s zero-Covid: Small outbreak and mitigation slows down production at the world’s biggest assembly plan for iPhones: Foxconn’s factory in Zhengzhou. Apple (AAPL) could be hurt. But it’s important to know that Apple has multiple suppliers for iPhone. Shanghai Disney shuts over Covid. Visitors unable to leave. Shares of Club holding Disney (DIS) down less than 1% in the premarket. Baird boosts Club holding Honeywell (HON) price target to $225 per share from $202. Emerson Electric (EMR) sells 55% of non-core climate/HVAC business to Blackstone (BX) private equity firm for $14 billion, which is syndicating it itself because banks are more cautious. Important takeaway, private equity gets less scrutiny from FTC and Justice Department. Think Kroger’s (KR) pending buyout of Safeway owner Albertsons (ACI). UBS downgrades Caterpillar (CAT) to neutral (hold) from buy; cuts price target by $5-per-share to $230, which is silly. UBS is talking about underappreciated earnings. I think from my interview with CEO Jim Umpleby on “Mad Money” on Friday this is dead wrong. Risk reward balanced. Nonsense. Wells Fargo starts Doximity (DOCS), an inventive advertising model site for doctors, with an overweight (buy) rating. It’s been a disaster: down 47% year to date. Barclays raises Magellan Midstream (MMP) price target to $55 per share from $49. This crude distribution and storage group is starting to run. Energy Transfer (ET)raised dividend. Kinder Morgan (KMI) downgraded and didn’t go down. RBN Energy’s Rusty Braziel: Europe now at 100% natural gas readiness for tough winter. Russians have lost leverage here, so winter will not bring about capitulation. Does make it so Lockheed (LMT), a weapons maker that supplies Ukraine, will do better? Barclays lowers carpet company Mohawk Industries (MHK) price target $90 per share from $127. Can’t own anything home. Outback Steakhouse owner Bloomin’ Brands (BLMN): two price target boosts, Citi and Barclays. Travel and entertainment remains biggest spending elements. Barclays: LyondellBasell (LYB) downgraded to equal weight from overweight (hold from buy), cut price target to $82 per share from $95. Citi keeps neutral (hold) rating but raises PT by $1-per-share to $80. Chemicals and plastic keep going down. Barclays shockingly takes Amgen (AMGN) to underweight from equal weight (sell from hold). Overvalued with pipeline not as good. This will be ignored. Stakes too high. (Jim Cramer’s Charitable Trust is long META, GOOGL, WYNN, AAPL and HON. See here for a full list of the stocks.) 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.

Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2022 in New York City. Stocks continued their upward gains Thursday with the Dow rising nearly 400 points following a new GDP report that beat expectations. 

Spencer Platt | Getty Images News | Getty Images

Best month for the Dow Jones Industrial Average since 1976? The end of tech tyranny is allowing others to gain aplenty, particularly lean industrials primed for infrastructure or travel or climate change. Worst: Pain at bloated big cap industrials and semiconductors could continue.