Jim Cramer's top 10 things to watch in the stock market Tuesday
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CNBC Finance
5 min read
My top 10 things to watch Tuesday, May 19 1. Stock futures are lower this morning. Higher bond yields are presenting a challenge to stocks, something I've warned about for weeks. Lower rates are the oxygen for stock rallies. President Donald Trump said last night he was calling off a plan to attack Iran at the request of some regional leaders in the Middle East. 2. The problem with oil these days: It goes down less when Trump says there's a hint of peace, and it goes up much more when there's a rumor of war. All of this truce-carrot-with-no-stick leads to ever-higher prices. Without a peace deal soon, oil may climb back to the $119 levels from $108 today . And if so, could the inflation-sensitive 10-year Treasury yield get to 5.5%? It's at 4.62% this morning. 3. Club name Home Depot reported mostly in line first-quarter results this morning. Full-year guidance reiterated. Nothing good, nothing bad. The stock has been terrible because mortgage rates haven't cooperated, keeping the housing market sluggish. This one needs lower rates to move higher. Period. We will have a full analysis of the quarter after management's conference call with investors. 4. Intel CEO Lip-Bu Tan told me on "Mad Money" last night that its foundry business is gaining momentum . Tan wouldn't comment directly on reports Intel inked a manufacturing deal with Apple , but he did say its production quality has improved to the point that external customers are seriously interested. Key to both its turnaround and U.S. national security. Tan's progress at Intel in 14 months is nothing short of remarkable. 5. HSBC upped its price target on Nvidia to $325 from $295 ahead of tomorrow night's earnings report. Kept buy rating. HSBC believes earnings momentum and a stellar product roadmap are less meaningful narratives now. Analysts argued that further diversifying revenue away from its cloud service provider customer base could help unlock shares. 6. Broadcom's price target was lifted to $582 from $490 at Evercore, with analysts saying it is a frontrunner for bringing optical networking technology closer to the chip (co-packaged optics). We own Broadcom primarily for its custom-chip business, but networking is also an important driver. Corning is our main play on optics for the Club. Evercore also boosted its PT on Broadcom rival Marvell to $155 from $133. 7. Fascinating headline here: Private equity giant Blackstone and Club name Google are teaming up to create a new AI cloud company running on Google's Tensor Processing Units (TPUs), The Wall Street Journal reported . Broadcom co-designs the TPUs. Blackstone and Google's stocks aren't moving much, but so-called neoclouds like CoreWeave and Nebius are down. This is a move onto their turf. 8. Mizuho increased Micron's PT to $800 from $740, citing pricing tailwinds as memory supply remains tight into 2027 thanks to AI. I'll say it again: Micron is the one to buy on a pullback. Shares are down more than 2% this morning and shed nearly 6% yesterday after comments from Seagate's CEO on the pace of new capacity expansion. 9. Goldman Sachs boosted its price target on senior housing owner Ventas to $110 from $100, implying about 25% upside from yesterday's close. Kept buy rating. The aging U.S. population is a structural driver here. CEO Debra Cafaro joined me on "Mad Money" last month, where she explained how Ventas uses its financial strength to act as a consolidator. She said senior housing starts are at historic lows, too. 10. Bank of America bumped up its price target on railroad operator CSX to $51 from $49. Analysts see more upside after the board authorized a $5 billion share buyback for roughly 6% of outstanding shares. That matches the largest in company history. CSX is the kind of stock that wins when the economy picks up steam. 4 more things on my radar 11. Here's a loser that might turn into a winner: StubHub . Guggenheim upgraded the ticket marketplace from hold to buy and raised its price target to $12.50 from $8.50. Analysts pointed to tailwinds such as the World Cup this summer and easy fourth-quarter comps as the basis for their call. Shares are up nearly 5% premarket, but it's been tough sledding since its September IPO. Ended yesterday down 31% year to date. 12. We added a new company to the Club portfolio yesterday afternoon, calling it up from our Bullpen watchlist. You can read our initiation story here , where we make the case for ownership. We like to start our new positions small and scale in over time. 13. A couple of other Club stories were published yesterday for Club members: We explained our rationale behind our "own it, don't trade" mantra for Nvidia and why it's still not too late to start a position in the leading AI chipmaker. We also hiked our price targets on our cybersecurity stocks. Barclays increased its PT on CrowdStrike to $650 from $550 this morning. 14. Elon Musk's SpaceX is preparing to test launch a new version of its reusable Starship rocket this week, less than a month from its expected initial public offering. While Club name Linde is poised to be a winner from the deal as one of SpaceX's key gas suppliers, I'm worried all these mega IPOs could be a problem for the broader market. 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. 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