Cramer’s things to watch in stock market Wednesday:

My top 10 things to watch Wednesday, April 5 1. It’s a new dawn for embattled Johnson & Johnson (JNJ). The plaintiffs and the defense reached a tentative agreement where JNJ will pay $8.9 billion over the next 25 years to settle allegations the company’s baby powder and other talc products caused cancer. The company announced the proposed settlement in a securities filing, and said it continues to believe the claims lack merit. More than 60,000 claimants have committed to support the proposed resolution, which now awaits approval in bankruptcy court. Wells Fargo says its legal expert sees the odds of this going through at 50/50, but courts are reluctant to overturn agreements. We view this as a major victory for a big Club name, ending an existential crisis. Shares of JNJ rose more than 2% in the premarket. 2. Walmart (WMT) management is humble as always about its outlook, confirms its first-quarter adjusted EPS of $1.25-$1.30 versus consensus $1.30, backs first-quarter revenue growth of 4.5%-5% in constant currency. 3. Meta Platforms (META) price target raised to $250 from $225 at Jeffries. A lot to like here, including easier compares and accelerating revenue growth. Argus upgrades Meta to buy from hold on higher profitability from cost cuts. 4. Federal Reserve’s Loretta Mester, a predictable hawk, says the interest rate target will need to go above 5% . The Bank of Cleveland President shows no sign whatsoever about what’s going on in the economy. The arrogance and hubris is a tad disconcerting. 5. Raymond James takes insurance giants UnitedHealth (UNH) and Cigna (CI) to “strong buy” from “outperform,” says both are well-positioned to have a strong 2023. We vastly prefer club name Humana (HUM), which has a stronger franchise and better earnings-surprise potential. 6. Federal Realty (FRT) price target lowered to $111 from $118 at Piper Sandler. This is a shopping center REIT, which is the strongest segment so I don’t get the cut. Analyst says investors are “waiting for clarity as the much anticipated recession refuses to come and the market battles between higher and lower rates.” 7. Analyst Michael Nathanson with a spirited push of Disney (DIS), says the entertainment giant is a better free-cash-flow story than people realize. 8. Bank of America raises price target for Apple to $168 from $158, keeps a neutral rating on shares. The analyst sees balanced risk-reward with positive catalysts of a potential AR/VR headset introduction and stable iPhone performance offset by a potential slowdown in consumer spending for the second half of 2023. 9. Piper Sandler released the results of its semi-annual survey on Gen-Z teenagers, with bullish implications for a slate of Club holdings . 10. JPMorgan sees upside for Eli Lilly (LLY) and Biogen (BIIB) based on their drugs to treat Alzheimer’s disease. Club holding Lilly has spent decades researching Alzheimer’s disease , and its new experimental treatment, called donanemab, is currently in late-stage trials. Analyst expects shares to be up 10% in its base case. Sign up for my Top 10 morning thoughts on the market email newsletter for free (See here for a full list of the stocks in 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.

Johnson’s baby powder on a supermarket shelf in Alhambra, California.

Frederick J. Brown | AFP | Getty Images

My top 10 things to watch Wednesday, April 5

1. It’s a new dawn for embattled Johnson & Johnson (JNJ). The plaintiffs and the defense reached a tentative agreement where JNJ will pay $8.9 billion over the next 25 years to settle allegations the company’s baby powder and other talc products caused cancer. The company announced the proposed settlement in a securities filing, and said it continues to believe the claims lack merit. More than 60,000 claimants have committed to support the proposed resolution, which now awaits approval in bankruptcy court. Wells Fargo says its legal expert sees the odds of this going through at 50/50, but courts are reluctant to overturn agreements. We view this as a major victory for a big Club name, ending an existential crisis. Shares of JNJ rose more than 2% in the premarket.

2. Walmart (WMT) management is humble as always about its outlook, confirms its first-quarter adjusted EPS of $1.25-$1.30 versus consensus $1.30, backs first-quarter revenue growth of 4.5%-5% in constant currency.

3. Meta Platforms (META) price target raised to $250 from $225 at Jeffries. A lot to like here, including easier compares and accelerating revenue growth. Argus upgrades Meta to buy from hold on higher profitability from cost cuts.

4. Federal Reserve’s Loretta Mester, a predictable hawk, says the interest rate target will need to go above 5%. The Bank of Cleveland President shows no sign whatsoever about what’s going on in the economy. The arrogance and hubris is a tad disconcerting.

5. Raymond James takes insurance giants UnitedHealth (UNH) and Cigna (CI) to “strong buy” from “outperform,” says both are well-positioned to have a strong 2023. We vastly prefer club name Humana (HUM), which has a stronger franchise and better earnings-surprise potential.

6. Federal Realty (FRT) price target lowered to $111 from $118 at Piper Sandler. This is a shopping center REIT, which is the strongest segment so I don’t get the cut. Analyst says investors are “waiting for clarity as the much anticipated recession refuses to come and the market battles between higher and lower rates.”

7. Analyst Michael Nathanson with a spirited push of Disney (DIS), says the entertainment giant is a better free-cash-flow story than people realize.

8. Bank of America raises price target for Apple to $168 from $158, keeps a neutral rating on shares. The analyst sees balanced risk-reward with positive catalysts of a potential AR/VR headset introduction and stable iPhone performance offset by a potential slowdown in consumer spending for the second half of 2023.

9. Piper Sandler released the results of its semi-annual survey on Gen-Z teenagers, with bullish implications for a slate of Club holdings.

10. JPMorgan sees upside for Eli Lilly (LLY) and Biogen (BIIB) based on their drugs to treat Alzheimer’s disease. Club holding Lilly has spent decades researching Alzheimer’s disease, and its new experimental treatment, called donanemab, is currently in late-stage trials. Analyst expects shares to be up 10% in its base case.

(See here for a full list of the stocks in 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.

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