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

Published Thu, Apr 25 20249:14 AM EDT

My top 10 things to watch Thursday, April 25 Wall Street is looking lower , especially the Nasdaq on Meta Platforms ' earnings-driven 15% slide. The government on Thursday delivers slower-than-expected economic growth in the first quarter. But, the inflation component of the report was much stronger than expected. U.S. stocks leg down after the data. The 10-year Treasury yield tops 4.7%, the highest level in over five months . The Nasdaq and S & P 500 on Wednesday were able to eke out a third straight day higher. The Dow Jones Industrial Average fell modestly and broke its four-session winning streak. After the bell Thursday, Microsoft and Alphabet are out with earnings. During our Club monthly meeting Wednesday, we looked at all 33 stocks in our portfolio. Why trust Mark Zuckerberg? How about because he has proven time and again it is worth doing so? Yes, the co-founder and CEO of Club name Meta is spending much more on artificial intelligence. Yes, the year of efficiency is over. But let's never forget that he has a business that is actually levered to generative AI. Still losing a ton of money in Reality Labs unit. Ford crushes it, delivering a quarterly earnings beat, a rosy 2024 outlook and cost discipline. Surprised that Ford Blue, the gas-powered and hybrid unit, isn't better but the year is on track. Brought down by delay in production of the new 2024 F-150 pickup, which is now being delivered to customers and dealers. The Club stock is up more than 1.5%. Southwest Airlines cuts growth plans, blames Boeing aircraft delays. Southwest shares are down 8%. American Airlines , meanwhile, swings to a loss but boosts outlook. The stock is up roughly 3.5%. Club name Honeywell beat on quarterly earnings and revenue but no guidance raise. Aerospace was up 18%. Levered to automation; future of aviation; and energy transition. Industrial automation down 13%; building automation down 3%; energy and sustainable up 5%. Shares are up more than 2.5%. Chemical giant Dow once again does the number but where's the upside? Where is the leverage? In the materials sector, we own DuPont . Caterpillar shares are down nearly 5%. Quarter earnings beat but light on revenue. Pace of sales growth slows. Expects current quarter sales to be lower than a year ago. Higher price realization. IBM 's consulting business ticks down but makes HashiCorp acquisition in $6.4 billion deal. Whatever happened to the days of double-digit growth from RedHat? IBM shares sink 9%. ServiceNow does great quarter but not great outlook. This has been a common theme with this company. This was not a quarter of outsized predictions. It is the cautious quarter. The enterprise software company's stock is down 4%. GE Vernova is about natural gas and the grid and not about wind right now. Onshore wind is profitable but not big. The demand for electricity is very strong, and the hyperscalers are in need of as much power right now to run AI as they can get and will accept nat gas as bridge fuel. Hot IPO. Way oversubscribed? Microsoft-backed Rubrik is set to begin trading on the New York Stock Exchange on Thursday. The data-management software company priced its initial public offering of 23.5 million shares at $32 each. That was above the expected range. 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.

My top 10 things to watch Thursday, April 25

Wall Street is looking lower, especially the Nasdaq on Meta Platforms' earnings-driven 15% slide. The government on Thursday delivers slower-than-expected economic growth in the first quarter. But, the inflation component of the report was much stronger than expected. U.S. stocks leg down after the data. The 10-year Treasury yield tops 4.7%, the highest level in over five months.
The Nasdaq and S&P 500 on Wednesday were able to eke out a third straight day higher. The Dow Jones Industrial Average fell modestly and broke its four-session winning streak. After the bell Thursday, Microsoft and Alphabet are out with earnings. During our Club monthly meeting Wednesday, we looked at all 33 stocks in our portfolio.
Why trust Mark Zuckerberg? How about because he has proven time and again it is worth doing so? Yes, the co-founder and CEO of Club name Meta is spending much more on artificial intelligence. Yes, the year of efficiency is over. But let's never forget that he has a business that is actually levered to generative AI. Still losing a ton of money in Reality Labs unit.
Ford crushes it, delivering a quarterly earnings beat, a rosy 2024 outlook and cost discipline. Surprised that Ford Blue, the gas-powered and hybrid unit, isn't better but the year is on track. Brought down by delay in production of the new 2024 F-150 pickup, which is now being delivered to customers and dealers. The Club stock is up more than 1.5%.
Southwest Airlines cuts growth plans, blames Boeing aircraft delays. Southwest shares are down 8%. American Airlines, meanwhile, swings to a loss but boosts outlook. The stock is up roughly 3.5%.
Club name Honeywell beat on quarterly earnings and revenue but no guidance raise. Aerospace was up 18%. Levered to automation; future of aviation; and energy transition. Industrial automation down 13%; building automation down 3%; energy and sustainable up 5%. Shares are up more than 2.5%.
Chemical giant Dow once again does the number but where's the upside? Where is the leverage? In the materials sector, we own DuPont. Caterpillar shares are down nearly 5%. Quarter earnings beat but light on revenue. Pace of sales growth slows. Expects current quarter sales to be lower than a year ago. Higher price realization.
IBM's consulting business ticks down but makes HashiCorp acquisition in $6.4 billion deal. Whatever happened to the days of double-digit growth from RedHat? IBM shares sink 9%. ServiceNow does great quarter but not great outlook. This has been a common theme with this company. This was not a quarter of outsized predictions. It is the cautious quarter. The enterprise software company's stock is down 4%.
GE Vernova is about natural gas and the grid and not about wind right now. Onshore wind is profitable but not big. The demand for electricity is very strong, and the hyperscalers are in need of as much power right now to run AI as they can get and will accept nat gas as bridge fuel.
Hot IPO. Way oversubscribed? Microsoft-backed Rubrik is set to begin trading on the New York Stock Exchange on Thursday. The data-management software company priced its initial public offering of 23.5 million shares at $32 each. That was above the expected range.

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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.