Jim Cramer's Top 10 Market Insights and Wall Street's Analyst Calls for Monday

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

My top 10 things to watch Monday, August 5 1. A global sell-off is underway Monday, with Japan front and center. Too much leverage in Japan? Its Nikkei 225 dropped 12.4% for its worst day since "Black Monday" in 1987 and entered into a bear market. Crypto is not acting like a safe-haven asset, as bitcoin tumbled 13% and at one point dropped below $50,000 each for the first time since February. 2. In the U.S., megacap tech names including Amazon , Alphabet and Microsoft are tracking for steep declines at Monday's open -- as are the major stock indexes. Futures for the tech-heavy Nasdaq 100 were down more than 5%. Questions about return on investment for AI spending are now being paired with fears about the health of the U.S. economy. Still, are these kinds of declines justified? The VIX index, often called Wall Street's fear gauge, more than doubled Monday to over 52, reaching levels last seen during pandemic-related volatility in 2020. That's too high. 3. There are a lot of problems in the market that we still need to work through, as I told Investing Club members in my Sunday column . Even after back-to-back declines Thursday and Friday, stocks did not end last week in oversold territory. But we will be Tuesday if the market stays down like this. We have been building our cash position so we can take advantage of sell-offs like this. 4. Nvidia is down big, likely due to both the broader sell-off and a media report that said the launch of its next-generation Blackwell chip platform could be pushed back by at least three months. Is it really delayed? In a statement to Reuters , a spokesperson for the Club holding and leading AI chipmaker said: "As we've stated before, Hopper demand is very strong, broad Blackwell sampling has started, and production is on track to ramp in the second half." I don't think there's been slippage from the original shipment schedule. 5. If you really think there's a delay to Blackwell, then go buy shares of fellow Club name Advanced Micro Devices . As its earnings report last week made clear, the chipmaker has a ton of business for its AI chips that launched in late 2023, with new iterations on the way, too. Let me be clear, though: I don't believe there is a delay for Nvidia's Blackwell. 6. Apple also is tracking for outsized losses Monday. Compounding the general sell-off pressures: Warren Buffett's Berkshire Hathaway disclosed over the weekend that it sold nearly half its massive stake in the iPhone maker. Given Buffett's reputation, the move is being viewed as a good reason for other investors to sell Apple, a longtime Club name. I won't guess why Berkshire downsized the position, but Buffett's endorsement had always been seat-of-the-pants. 7. Kellanova shares traded up into the sell-off last week, which was very odd. Now, The Wall Street Journal is reporting that privately held candy giant Mars is in advanced talks to buy the snack maker, which was spun out of cereal firm Kellogg in October 2023. The deal could vale Kellanova at roughly $30 billion, the Journal reported. 8. Shares of Eli Lilly are under pressure again Monday and on track to open at levels last seen in May, erasing all of their summer gains. While drug stocks are generally seen as defensive, Eli Lilly is not trading that way. Investors have grown worried about emerging competition in the fast-growing GLP-1 market from the likes of Roche and Viking Therapeutics . But I don't think the dynamics have really changed, given the expensive and complex manufacturing process for these drugs. That acts as a moat for Lilly and Wegovy maker Novo Nordisk . 9. Bernstein lowered its price target on Boeing to $207 a share from $222, but maintained its buy-equivalent rating on the troubled plane maker after its earnings report. Aerospace veteran Kelly Ortberg starts as Boeing's new chief executive Thursday. Amid all Boeing's challenges, the question for me is the cash flow. Is there enough? 10. Club names DuPont and Linde received price-target boosts after reporting earnings last week. RBC upped its PT on DuPont to $102 a share from $87, noting its margins are expanding and it's settling its PFAS liabilities. For Linde, Bank of America went to $516 a share from $495 and said the industrial gas giant's guidance is still conservative. 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. 1. A global sell-off is underway Monday, with Japan front and center. Too much leverage in Japan? Its Nikkei 225 dropped 12.4% for its worst day since "Black Monday" in 1987 and entered into a bear market. Crypto is not acting like a safe-haven asset, as bitcoin tumbled 13% and at one point dropped below $50,000 each for the first time since February. 2. In the U.S., megacap tech names including Amazon, Alphabet and Microsoft are tracking for steep declines at Monday's open -- as are the major stock indexes. Futures for the tech-heavy Nasdaq 100 were down more than 5%. Questions about return on investment for AI spending are now being paired with fears about the health of the U.S. economy. Still, are these kinds of declines justified? The VIX index, often called Wall Street's fear gauge, more than doubled Monday to over 52, reaching levels last seen during pandemic-related volatility in 2020. That's too high. 3. There are a lot of problems in the market that we still need to work through, as I told Investing Club members in my Sunday column. Even after back-to-back declines Thursday and Friday, stocks did not end last week in oversold territory. But we will be Tuesday if the market stays down like this. We have been building our cash position so we can take advantage of sell-offs like this. 4. Nvidia is down big, likely due to both the broader sell-off and a media report that said the launch of its next-generation Blackwell chip platform could be pushed back by at least three months. Is it really delayed? In a statement to Reuters, a spokesperson for the Club holding and leading AI chipmaker said: "As we've stated before, Hopper demand is very strong, broad Blackwell sampling has started, and production is on track to ramp in the second half." I don't think there's been slippage from the original shipment schedule. 5. If you really think there's a delay to Blackwell, then go buy shares of fellow Club name Advanced Micro Devices. As its earnings report last week made clear, the chipmaker has a ton of business for its AI chips that launched in late 2023, with new iterations on the way, too. Let me be clear, though: I don't believe there is a delay for Nvidia's Blackwell. 6. Apple also is tracking for outsized losses Monday. Compounding the general sell-off pressures: Warren Buffett's Berkshire Hathaway disclosed over the weekend that it sold nearly half its massive stake in the iPhone maker. Given Buffett's reputation, the move is being viewed as a good reason for other investors to sell Apple, a longtime Club name. I won't guess why Berkshire downsized the position, but Buffett's endorsement had always been seat-of-the-pants. 7. Kellanova shares traded up into the sell-off last week, which was very odd. Now, The Wall Street Journal is reporting that privately held candy giant Mars is in advanced talks to buy the snack maker, which was spun out of cereal firm Kellogg in October 2023. The deal could vale Kellanova at roughly $30 billion, the Journal reported. 8. Shares of Eli Lilly are under pressure again Monday and on track to open at levels last seen in May, erasing all of their summer gains. While drug stocks are generally seen as defensive, Eli Lilly is not trading that way. Investors have grown worried about emerging competition in the fast-growing GLP-1 market from the likes of Roche and Viking Therapeutics. But I don't think the dynamics have really changed, given the expensive and complex manufacturing process for these drugs. That acts as a moat for Lilly and Wegovy maker Novo Nordisk. 9. Bernstein lowered its price target on Boeing to $207 a share from $222, but maintained its buy-equivalent rating on the troubled plane maker after its earnings report. Aerospace veteran Kelly Ortberg starts as Boeing's new chief executive Thursday. Amid all Boeing's challenges, the question for me is the cash flow. Is there enough? 10. Club names DuPont and Linde received price-target boosts after reporting earnings last week. RBC upped its PT on DuPont to $102 a share from $87, noting its margins are expanding and it's settling its PFAS liabilities. For Linde, Bank of America went to $516 a share from $495 and said the industrial gas giant's guidance is still conservative.

Here are Monday's biggest analyst calls: Nvidia, Netflix, Apple, Walmart, Disney, Boeing, Robinhood, Berkshire Hathaway & more

Here are Monday's biggest calls on Wall Street: Bank of America reiterates Nvidia as buy Bank of America said shares are "compelling" at current levels. "However, we see any selloff as enhanced buying opportunity as challenges are not in demand, but in (solvable) supply that will not fundamentally derail NVDA's longer-term momentum." Mizuho reiterates Grab and Trip.com as top picks Mizuho said the two stocks are silver linings amid a bumpy China macro. "Despite the uncertain environment, we remain positive on the pent-up demand of outbound travel, and TCOM is a top pick. ... .From that perspective, GRAB is also a top pick into the quarter. Please see below for our company summaries." Morgan Stanley reiterates Disney as overweight Morgan Stanley lowered its price target on the stock to $110 per share from $130 but said it's sticking with Disney shares. "There are enough data points at this point to take a more cautious view of Disney's parks business in FY25. With shares off 23% since F2Q earnings in May, much of this appears priced." KeyBanc upgrades Gulfport Energy to overweight from sector weight KeyBanc said investors should buy the dip in shares of the nat gas company. "Our outlook for natural gas has not changed since then. Nor has our positive fundamental outlook for Gulfport (the Company)." RBC upgrades Lockheed Martin to outperform from sector perform RBC said the stock's valuation is attractive. "We are upgrading our rating on Lockheed Martin (LMT) from Sector Perform to Outperform and raising our price target to $600 (previously $500)." Morgan Stanley upgrades Prosperity Bancshares to overweight from equal weight Morgan Stanley said the regional bank has "best in class capital and growing liquidity." The firm also upgraded the midcap bank sector to attractive. "Rating changes: Upgrading PB to Overweight from Equal-weight given strong NIM [net interest margin] expansion story coupled with best in class capital and growing liquidity." Morgan Stanley initiates MKS Instruments as overweight Morgan Stanley said the controlling and measuring device manufacturing company is well positioned. "As MKSI's semi and E & P businesses enter a cyclical recovery the company should return to its post-acquisition deleverage playbook and see outsized EPS growth. UBS reiterates Berkshire Hathaway as buy UBS said it's sticking with shares of Berkshire Hathaway following earnings on Saturday. "Raising estimates on higher Insurance underwriting and investment income." Citi upgrades Robinhood to neutral from sell Citi sees fundamentals getting better for the online trading company. "We are upgrading HOOD to Neutral/High Risk. HOOD finished down 12% on Friday given the potential impact from lower rates. The fundamental story has been improving in recent periods with healthy growth in deposits, margin balances, options/equities trading." RBC downgrades Moderna to sector perform from outperform RBC said it sees too many headwinds for Moderna shares. "Overall, with a top line that we expect is likely to stay at $3-4b for the foreseeable future and the company hesitating in aggressively reducing their costs the balance sheet no longer looks strong even at $10.8b in cash and a guide that implies $6-7b ending cash balance in 2025." Morgan Stanley reiterates Apple as overweight Morgan Stanley said it's sticking with the stock following its quarterly 10-Q report. " Apple's operating margin reached a near June quarter record at 29.6%, all the more impressive given Greater China operating margins fell to a 4 year low." Morgan Stanley reiterates Walmart as overweight Morgan Stanley said it's sticking with its overweight rating on the stock following Walmart+ membership hitting a record high according to its survey checks. "Latest survey implies ~21.5m Walmart+ members, a record high (~14m adjusting for survey overcounting)." Bank of America upgrades Five9 to buy from underperform Bank of America double upgraded the cloud contact center company and said shares are "compelling." "We upgrade Five9 to Buy (from Underperform) while leaving our $63 PO unchanged (54% upside potential). Our bullish view is underpinned by 1) a compelling risk/reward profile; 2) AI as a tailwind in the near and medium-term." Jefferies reiterates Netflix as buy Jefferies says investors should buy the dip in Netflix shares. "We are increasingly bullish on the recent 10%+ pullback in the stock, as we believe a Q4 US price hike is possible on the back of an impressive content slate." RBC upgrades Kellanova to outperform from sector perform RBC upgraded the food products company following reports of Mars interest in acquiring the company. "Reuters recently reported that Mars might have interest in acquiring Kellanova (neither company has commented). Usually where there is smoke there is fire, but the track record of the press anticipating M & A has not always been accurate." Bernstein reiterates Boeing as outperform Bernstein lowered its price target on Boeing to $207 per share from $222 but says it's sticking with the stock. "In assessing where Boeing currently stands, there are two competing factors. First is the deepening hole of cash, with more defense charges, rising inventories, slowing advances, and higher debt. On the other side is an outlook for improving deliveries, including the 737 production ramp, 787 production recovery, 777X certification progress, and restart of deliveries to China."