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

My top 10 things to watch Tuesday, Oct. 13

1. The chip stock rout seems to know no end. It started in South Korea again, with the Kospi down 5.5% overnight. Memory names are getting killed. Club holding Micron is down nearly 4%. The tech-heavy Nasdaq is headed for a sharply lower open. There is no way to stick a knife into the circular reasoning gambit. Plus, China memory is making advances. So, the long knives are back out.

2. Broadcom CEO Hock Tan tried to explain why the market swings back and forth so much on the AI trade. At an event in Singapore, Tan said, "A lot of investors have no clue what they are investing in." He added, "[They] set very extreme expectations only to find that it is almost like they are in a casino." It's not demand that is hurting the stocks. It's investor sentiment. Club name Broadcom is down nearly 1.5%.

3. Earnings from Club names Goldman Sachs and Wells Fargo are largely good. Goldman is also a Dow stock, and its more than 3% gain is supporting a strong rally in Dow futures. The fact that oil prices and bond yields are down is not helping as much as it usually does, at least when it comes to the broader market S&P futures, which are basically flat this morning.

4. Huge beat for Goldman Sachs. Revenue blew past the consensus by nearly $2 billion, with equities trading power a large chunk of that beat. Investment banking and asset management were also better than expected. It's been a rough few months for this stock, but numbers like these are why I felt confident enough to recommend buying shares ahead of the quarter. Goldman doing Goldman things.

5. Wells Fargo beat on the bottom line but missed on top-line revenue. The stock is down 2%. Net interest income (NII) was a little light for the quarter, though the Q4 guide was slightly stronger and the full-year guide was maintained. Provisions for credit losses were less than expected, with CEO Charlie Scharf calling out a resilient consumer.

6. It's been a volatile morning for JPMorgan shares after the country's largest bank by assets issued a rare earnings-per-share miss. Fixed income trading revenue and expense growth were blemishes. But the bank did raise its NII outlook for the year. Citigroup stock was in the red after EPS and revenue beats. Full-year NII ex-markets up mid-to-high 6% range versus prior guidance of 5% to 6%.

7. Tale of two cities again for Club name Johnson & Johnson's earnings. The drug business was good, led by Tremfya, but the medical devices and technology unit fell short of expectations. Management took up the full-year earnings guide, but shares are down 2%. Keep in mind this one has a habit of trading poorly on earnings day.

8. Bernstein said that all signs point to continued SpaceX growth in broadband and wireless, citing a recent satellite deployment and Starlink's purchase of low-band spectrum. That's bad for the incumbents. The analysts downgraded AT&T to a hold from buy and trimmed their price target. They also cut their PTs on T-Mobile, Verizon, Charter Communications, and Comcast. They kept their hold ratings on those stocks.

9. Truist hiked its Meta Platforms price target to $1,000 from $763, implying almost 35% upside from yesterday's close. Kept its buy rating. Analysts see strong monetization momentum into Meta earnings and are excited by the reception to Muse, its personal AI agent app. The Club name also released its new flagship Muse Wonder model yesterday to great fanfare. Wells Fargo said the model reaches the "AI frontier." Meta is one to own for the long term, even as AI competition is fierce.

10. Barclays raised its price target on portfolio holding Microsoft to $600 from $512 and maintained its buy rating. The analysts said that Microsoft should see "AI benefits for both Azure and the Office franchise (fueled by Copilot)" during its just-ended quarter. They did note, however, that there may be some noise in the numbers due to the company's new reporting structure.