Jim Cramer's Top 10 Things to Watch in the Stock Market on Wednesday

On Wednesday, January 22, Wall Street is set for a higher open thanks to strong earnings reports, with the S&P 500 and the Dow both having gained ground for five consecutive sessions. The Nasdaq is also showing positive momentum with back-to-back gains. Investors are closely watching how new initiatives from President Donald Trump may influence the stocks in our portfolio.

1. Strong Earnings Fuel Optimism

Wall Street is upbeat as strong earnings continue to roll in, which has set the stage for a higher opening. The S&P 500 has seen a rise for five straight days, and analysts are optimistic about continued gains.

2. Netflix Reports Impressive Numbers

Netflix has reported stellar quarterly results, beating estimates for both revenue and earnings. The company added a record 19 million new customers, sending its stock soaring by 15%.

3. United Airlines Surprises with Earnings

United Airlines also reported exceptional quarterly earnings, surpassing analysts' expectations in both earnings per share and revenue. The airline showcased significant pricing power by raising prices while still improving its earnings.

4. GE Vernova Gains Ground

GE Vernova has received major orders, indicating a strong return to nuclear energy. The company is also ramping up hiring to meet rising demand, particularly in natural gas and electrification sectors.

5. Abbott Laboratories Matches Estimates

Abbott Laboratories reported earnings that matched estimates but fell short on revenue. The company's full-year earnings per share guidance was conservative, missing the midpoint by just a penny.

6. Johnson & Johnson Exceeds Expectations

Dow component Johnson & Johnson declared better-than-expected quarterly earnings, driven by growth in its cancer drug portfolio, particularly with Stelara for Crohn's disease and Darzalex for multiple myeloma.

7. Procter & Gamble Shows Strength

Procter & Gamble, another blue-chip Dow stock, reported stronger-than-anticipated quarterly earnings and revenue, supported by solid organic sales growth and a reiteration of its fiscal 2025 guidance.

8. Medical Advancements in Cardiovascular Health

The latest issue of the medical journal Lancet highlights that elevated blood pressure is the primary risk factor for cardiovascular disease. Initial findings suggest that GLP-1 medications can help reduce blood pressure, which is a significant development for companies like Eli Lilly and Novo Nordisk that specialize in GLP-1s.

9. Microsoft Price Target Adjusted

Morgan Stanley has adjusted its price target for Microsoft, lowering it to $540 per share from $548. Despite this, there is a positive outlook ahead of next week's earnings report due to relatively low expectations.

10. Apple Price Target Reduction

Barclays has also lowered its price target for Apple to $183, a $1 reduction, while maintaining a sell-equivalent rating. There has been consistent discussion about the profits made from Apple stock over the years.

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(For a complete list of stocks in Jim Cramer's Charitable Trust, please refer to our resources.)

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