Analysis: DXC TJX XEC PEP LUV HPE AGN APA CSCO CMCSA DHR EZU FB SNAP GE GOOGL KEY MMP NUE SLB SNA AZO AAP M JWN JCP AMZN AAPL ADBE ARNC C SBUX WBA RAD WFC WDC DD DOW NWL NXPI

Markets trended higher, bouncing back from last week's one-day selloff as investors attempted to juggle several potentially market-moving political and economic events. The major headlines included President Trump's international trip, the FOMC's May policy meeting minutes and OPEC's Vienna summit, where the organization voted for a nine-month extension to oil production cuts (more below).

For this week, Treasury yields remained relatively flat as investors set their sights on next month's FOMC meeting and the dollar remained flat against the euro. Gold trended higher, continuing the climb it started in the middle of May as investors are increasingly skeptical of the Trump administration's ability to pass policies relating to health care, deregulation and tax reform. Lastly, oil traded lower following Thursday's OPEC meeting. Despite the committee agreeing to extend production cuts for nine months, investors were left wanting more as they had hoped for either a longer extension or deeper cuts.

First-quarter earnings are nearly complete and have been relatively positive versus expectations, with 73.2% of companies reporting a positive EPS surprise. In the portfolio, DXC Technology (DXC) reported earnings this week.

DXC reported fiscal-fourth-quarter stand-alone results for CSC (which merged with HP Enterprise Services to create DXC). Revenues of $1.89 billion came in short of consensus estimates of $1.95 billion, while EPS of $1.15 blew away estimates of $0.82. We do not expect the results to have much impact on DXC as investors continue to look ahead toward pro-forma results of the combined entity. Regarding DXC, management reiterated 2018 guidance for revenue of $24 billion to $24.5 billion, adjusted EPS of $6.50 to $7 and free cash flow at 100% or more of adjusted net income. Management also noted that since the merger, the company's board approved a $2 billion repurchase authorization and declared a $0.18-per-share quarterly dividend. The integration continues to go smoothly and there have not been any issues. You can read more about our take on the quarter and management updates in our earnings analysis here.

On the economic front, data were mixed but largely overshadowed by Thursday's OPEC meeting in Vienna.

On Tuesday, the Commerce Department reported that new home sales fell 11.4% to a seasonally adjusted rate of 569,000 in April, coming in well short of estimates of 610,000. April's figures come on the heels of March's 642,000 reading (revised up from the 621,000 previously reported), which marked a very strong month for new home sales and built off a strong existing home sales report for the month. As such, despite the month-over-month decline, new home sales are up 0.5% from the same time last year.

Digging deeper, sales fell in all major regions of the U.S. Leading the decline was the West, where sales fell 26.3%, followed by a 13.1% decline in the Midwest, a 7.5% decline in the Northeast, and a 4% decline in the South. Year over year, sales are down 5.1% in the Northeast and 13.7% in the West. The Midwest and South are up 19.7% and 4.1%, respectively. The median sales price of new homes sold in April was $309,200 and the average price was $368,300.

At the end of April, for-sale inventory sat at a seasonally adjusted 268,000 units, representing about a 5.7-month supply given current sales rates. While a six-month supply is viewed as balanced, April's level is at least an improvement from March's revised supply of 4.9 months. Recall that supply has been a major overhang for the housing market, pushing up home prices and leaving fewer purchasing opportunities for buyers.

Also on Tuesday, the market learned of details in the president's budget proposal. You can read our detailed commentary in this note.

On Wednesday, the National Association of Retailers (NAR) reported that existing home sales fell 2.3% in April to a seasonally adjusted rate of 5.57 million, down from 5.7 million (downwardly revised) in March and missing estimates of a 1% decline to a seasonally adjusted rate of 5.6 million units. Despite the miss, existing sales are up 1.6% year over year. In addition, recall that existing home sales had reached a 10-year high in March, creating a difficult compare for April.

Digging deeper by region on a month-over-month basis, existing home sales fell 2.7% in the Northeast (also down 2.7% year over year), rose 3.8% in the Midwest (down 0.7% year over year), fell 5% in the South (up 3.6% year over year), and declined 3.3% in the West (up 3.5% year over year).

As has been the theme of late, the NAR cited lack of supply as the cause for the decline. With demand remaining strong, a lack of supply has only contributed to rising home prices, which has made for a difficult buyer's environment. The supply shortage has pushed the average existing home price up 6% year over year (exceeding the growth of average income), with April marking the 62nd month in a row of year-over-year price increases.

Sellers, on the other hand, can rejoice: The average time that a home is on the market is down to 29 days (from 34 days in March and 39 days at the same time last year), the lowest reading since the NAR started tracking the metric in 2011. Inventory is up 7.2% from March but remains 9% lower than last year's levels. At the current rate of sales, there was a 4.2-month supply of existing homes at the end of April, well below the six-month supply that most consider balanced. Remember, however, that one month does not make a trend, and with March's numbers so strong, the housing market still appears to have legs.

Also on Wednesday, the Federal Reserve released the minutes from its policy meeting earlier in May. In line with expectations, the minutes confirmed that the Fed continues to expect to raise interest rates gradually over time, with eyes on June for the next potential hike. The consistent commentary is essential as investors have begun to question the true potential for two additional rate hikes this year, with weaker data and internal struggles in the White House both raising doubts regarding the economic outlook.

While we did not receive any new information regarding the outlook for rates moving forward (as expected), the minutes did provide a peek into the Fed's plans for reducing its balance sheet. The May statement did not offer any significant language pertaining to the plan, but the minutes appeared to indicate that officials were moving toward a consensus on how to shrink the $4.5 trillion balance sheet (which contains bonds and other assets).

For now, the committee intends to begin, prior to the end of the year, gradually ending its practice of reinvesting proceeds from its maturing portfolio securities. To do this, the FOMC will announce a set of gradually increasing limits on the dollar amounts of securities that would be allowed to "run off" (i.e., mature without reinvestment) each month until the balance sheet approached "some level of normal." Although the central bank stopped buying additional assets more than three years ago, the practice of reinvesting proceeds has kept the balance sheet at a steady level.

By decreasing the balance sheet, the Fed could have a "double" impact on interest rates (along with benchmark rate increases) -- reinvestments have kept demand high in the market for government bonds, holding rates low, while changing the reinvestment policy could impact the supply/demand dynamic and force upward pressure on rates. There is currently no real consensus on how this will play out in real time. As such, the Fed intends to be as passive, predictable and boring as possible when enacting this plan to maintain order in markets. The minutes appear to support this plan.

Moving on to Thursday, the Department of Labor reported that initial jobless claims for the week ending May 20 were 234,000, an increase of 1,000 claims from the prior week's unrevised numbers and 4,000 claims lower than expectations. Importantly, the four-week moving average for claims (used as a gauge to offset volatility in the weekly numbers) dipped to a 44-year low, dropping 5,750 claims to 235,250. The trend for the labor market continues to be strong and suggests, at least in part, that the economy has perhaps picked up momentum in the second quarter.

As a reminder, the government updated jobless claims in the prior report, going back five years, as it does annually, to consider more accurate seasonal adjustments. The updates show layoffs have remained extremely low but were a bit higher than previously reported, mostly when considering data from 2016. Claims have remained below 300,000 -- the threshold typically used to categorize a healthy jobs market -- for an astounding 89 straight weeks (compared with 116 weeks under the older seasonal-adjustment process, according to the updated data), the longest streak since 1970.

On the commodity front, oil prices initially continued their recent uptrend, moving toward five-week highs at the beginning of the week, but prices fell back below $50 as OPEC conducted its meetings in Vienna.

For our commentary on Monday's oil movements, you can read our note here. Our commentary on Wednesday ahead of the OPEC meeting can be read here.

Thursday was the star of the oil story this week as OPEC announced a nine-month extension to its current production cuts. Oil prices held their ground at first, but ultimately dropped below the $50 threshold. As we mentioned in our analysis, investors are disappointed in the reported extension as many were hoping for deeper cuts in addition to the extension.

Adding to the pain, reports also appear to indicate that Nigeria and Libya will continue to be exempt from production cuts -- both countries are expected to continue to ramp output in their efforts to restore supplies hampered by militant conflicts. Other reports have highlighted potential rising tensions with Iran, whose oil minister may have left the meeting on testy terms, creating uncertainty looking ahead as to whether Iran will comply with production limits.

Although prices always tend to be choppy when a meeting of this magnitude is in session, the sharp reversal from the initial upturn on Thursday was clearly significant as prices broke key technical levels. Even though there were no indications prior to the meeting that OPEC could deepen the cuts, investors, unjustifiably, hoped that OPEC leaders would push for such an agreement. Following the cartel's commentary regarding the extension, a "sell the news" mentality took control as there were no upside surprises to fuel further optimism. A nine-month extension was already baked into oil prices at around the $51 level.

Given the breakdown below $50 and investors being increasingly skeptical that an extension will serve its purpose, we would not be surprised to see oil prices drop lower into the mid-$40s in the short term. This is consistent with our view that oil will trade in its established range, oscillating from the low to high ends as different news emerges. Oil promises to be a market-moving story in the coming weeks.

In the portfolio this week, we added to our TJ Maxx (TJX) position after upgrading the name to One last week. We also added to Cimarex (XEC) slightly ahead of the OPEC report as the stock had dipped below the $115 level, which had provided support. On Friday, we trimmed our PepsiCo (PEP) position as the stock has rallied to all-time highs and continues to inch closer to our $120 price target.

Finally, we downgraded Southwest (LUV) to Two on a valuation basis and to reflect the stock's recent rally (up over 12% this quarter and over 20% year to date).

Moving on to the broader market, as we mentioned, first-quarter earnings are winding down and have been relatively positive versus expectations, with 73.2% of companies reporting a positive EPS surprise. Total first-quarter earnings growth is up roughly 14.1% year over year versus expectations for an overall 13.88% increase throughout the season; of the 423 non-financials that reported, earnings growth is 13.5%. Revenues are up 7.3% versus expectations throughout the season for a 7.12% increase; 73.2% of companies beat EPS expectations, 20.7% missed the mark and 6.1% were in line with consensus. On a year-over-year comparison basis, 73.77% beat the prior year's EPS results, 24.39% came up short and 1.84% were virtually in line. Information tech, industrials and health care have had the strongest performance to kick off the year versus estimates, whereas consumer staples and telecom have posted the worst results in the S&P 500.

Next week, roughly six companies in the S&P 500 will report earnings. Within the portfolio, HP Enterprise (HPE) will report. Other key earnings reports for the market include: American Woodmark (AMWD), Bank of Nova Scotia (BNS), Multi-Color (LABL), Danaos (DAC), Quanex (NX), Analog Devices (ADI), Columbus McKinnon (CMCO), CAE (CAE), Michael Kors (KORS), J. Jill (JILL), Daktronic (DAKT), Box (BOX), Ollie's Bargain Outlet (OLLI), Palo Alto Networks (PANW), Semtech (SMTC), Tech Data (TECD), Dollar General (DG), Ciena (CIEN), Donaldson (DCI), Express (EXPR), Mobileye (MBLY), Graham (GHM), Boot Barn Holdings (BOOT), Broadcom (AVGO), VMware (NMW), Cooper (COO), Lululemon Athletica (LULU), Workday (WDAY), Five Below (FIVE), Zumiez (ZUMZ) and Hovnanian (HOV).

Economic Data (*all times ET)

U.S.

Monday (5/29) -- Memorial Day

Tuesday (5/30)

Personal Income (8:30): 0.4% expected

Personal Spending (8:30): 0.4% expected

PCE Core MoM (8:30): 0.1% expected

Conf, Board Consumer Confidence (10:00): 119.9 expected

Dallas Fed Manf. Activity (10:30): 15.0 expected

Wednesday (5/31)

MBA Mortgage Applications (7:00)

Chicago Purchasing Manager (9:45): 57.0 expected

Pending Home Sales MoM (10:00): 1.0% expected

Thursday (6/1)

ADP Employment Change (8:15): 180k expected

Initial Jobless Claims (8:30)

Continuing Claims (8:30)

Markit US Manufacturing PMI (9:45)

Bloomberg Consumer Comfort (9:45)

ISM Manufacturing (10:00): 54.8 expected

ISM Prices Paid (10:00): 67.0 expected

Construction Spending MoM (10:00): 0.5% expected

Friday (6/2)

Change in Nonfarm Payrolls (8:30): 177k expected

Trade Balance (8:30): -44.0B expected

Change in Manufacturing Payrolls (8:30): 5k expected

Unemployment Change (8:30): 4.4% expected

International

Monday (5/29)

Eurozone Agg M3 Money Supply YoY (4:00)

Japan Jobless rate (19:30): 2.8% expected

Japan Job-To-Applicant Ratio (19:30): 1.46 expected

Japan Retail Sales MoM (19:50): -0.1% expected

Japan Retail Trade YoY (19:50): 2.2% expected

Tuesday (5/30)

Eurozone Agg Consumer Confidence (5:00)

Germany CPI MoM (8:00)

Germany CPI YoY (8:00)

Germany EU Harmonized MoM (8:00)

Germany EU Harmonized YoY (8:00)

Japan Industrial Production MoM (19:50): 4.3% expected

Japan Industrial Production YoY (19:50): 6.3% expected

China Manufacturing PMI (21:00): 51.0 expected

Wednesday (5/31)

Germany Unemployment Change (000's) (3:55)

Germany Unemployment Claims rate SA (3:55)

Eurozone Agg Unemployment Rate (5:00)

Eurozone Agg CPI Estimate YoY (5:00)

Eurozone Agg CPI Core YoY (5:00)

Japan Housing Starts YoY (1:00): -1.6% expected

UK Mortgage Approvals (4:30): 66.3k expected

Japan Capital Spending YoY (19:50): 3.8% expected

Japan Nikkei Japan PMI Mfg (20:30):

Thursday (6/1)

Germany Markit/BME Germany Manufacturing PMI (3:55)

Eurozone Agg Markit Eurozone Manufacturing PMI (4:00)

Japan Vehicle Sales YoY (1:00)

UK Markit UK PMI Manufacturing SA (4:30): 56.1 expected

Japan Monetary Base YoY (19:50)

China Caixin China PMI Mfg (21:45): 50.2 expected

Friday (6/2)

UK Markit/CIPS UK Construction PMI (4:30): 52.7 expected

New folks, welcome aboard! You're reading the Weekly Roundup of the charitable trust that Jim talks about regularly on Mad Money and in his new bestseller, Get Rich Carefully. Jim put $3 million of his own money into this charitable trust so that you, the subscriber, can learn how he and the Action Alerts PLUS staff make decisions about a diversified portfolio and make money. You'll see every position in every stock, and we'll send you alerts BEFORE every trade. And best of all, all profits go to charity -- we've donated $1.8 million to date.

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We also want to be sure you're not confused about the terminology that Jim uses on his Mad Money television show: When you hear Jim refer to the charitable trust, he is talking about the trust that holds the Action Alerts PLUS portfolio. The gains from Action Alerts PLUS go to charity after the close of each trading year.

Here's the quick guide to the rating system, too: Ones are stocks we would buy right now, Twos are stocks that we'd buy on a pullback, Threes are stocks we would sell on strength and Fours are stocks we want to unload as soon as our trading restrictions allow.

ONES

Allergan (AGN) ; $223.12; 550 shares; 4.44%; Sector: Health care): Shares traded higher this week, outperforming the overall market. As we stated last week, we believe CEO Brent Saunders is making the right moves to grow the company. With the recent acquisition of Zeltiq, AGN added CoolSculpt to its list of aesthetic offerings. With this move, AGN not only dominates the face in terms of medical aesthetics, but now offers a proven solution for those looking to "freeze off" a few pounds as well. In addition to the aesthetics business, the company's six stars (late-stage pipeline drugs) should help to propel the stock higher over time. While the stock saw pressure following its last report (due to cash flow being somewhat weak), it seems to have found support around the $219 level and management expects operating cash flows to normalize (to $1.5 billion to $2 billion) in the second half of the year. At these levels, we view shares as attractive for those who find themselves underexposed and we reiterate our $270 target.

Apache (APA) ; $48.19; 2,200 shares; 3.84%; Sector: Energy): Shares traded sharply lower this week, mostly due to the slide in oil prices on Thursday following OPEC's announcement that the cartel had extended production cuts for nine months (into the first quarter of 2018). As we mentioned multiple times this week, we believe the selloff in these energy names is overdone -- but while these stocks look cheap, we also have to recognize that short-term irrationality can take control in times of uncertainty. When looking at the dynamic in recent weeks, even though oil prices have traded toward the high end of the range before pulling back this week, APA shares (and energy shares overall) had been pressured. We believe APA is not getting the credit it deserves for its most recent quarter, where its update on Alpine High was very encouraging. We understand that the company needs the pipeline infrastructure in place to begin moving product out of the ground, but we continue to like the long-term story. In addition, APA could be a takeover target should shares not recover in the short to medium term. We view shares as attractive here for those who are unexposed, but we have set levels between $46 and $47 for the next purchase for the portfolio given that we already have a 3.8% weighting in the name. We reiterate our $63 target.

Cimarex (XEC) ; $110.95; 875 shares; 3.52%; Sector: Energy): Shares traded sharply lower this week as the energy sector was under increased pressure. Following the announcement that OPEC had agreed to a nine-month production-cut extension on Thursday, oil-related names fell as investors had been hoping for either deeper cuts (i.e., requiring countries to slash output by a larger magnitude) or a longer extension. We view the selloff as shortsighted and feel it provides a buying opportunity for those who find themselves underweight in the sector. Regarding Cimarex, we note that on the last earnings call, management increased its full-year production guidance, bringing 25 (16 net) additional wells online in the Permian and another 45 (10 net) at its Mid-Continent site. XEC is a high-quality, low-cost operator that we believe is setting itself up to make a comeback once the oil market rebalances. We also want to note, the last time XEC traded in the low $100s, oil was trading around $40 a barrel -- we believe there is little downside from here as the selloff in this name is way overextended compared to the movements in oil prices. We reiterate our $150 target.

Cisco Systems (CSCO) ; $31.50; 3,000 shares; 3.42%; Sector: Technology): Shares traded relatively flat this week on little news, underperforming the overall market. Last week, the stock sold off because of lower-than-expected forward guidance from management on the company's earnings call. Despite the down move, we continue to like CSCO as we feel the longer-term transformation to software and security (higher margin, higher growth and recurring revenues) remains intact. Ultimately, we see the stock re-rate higher as the transformation proceeds and we are happy to collect the 3.7% dividend as we wait.

Comcast (CMCSA) ; $40.91; 2,000 shares; 2.96%; Sector: Consumer Discretionary): Shares traded higher this week, outperforming the overall market. On Monday, CMCSA confirmed that it had attained the rights to Nintendo for theme parks. With this, the company is one step closer to eventually opening its Super Nintendo World attraction (expected to launch Universal Studios in Japan in 2020). While this announcement is nothing new, we are always happy to see the companies in our portfolio executing on previously announced plans. You can see our original note on the deal here and read the original announcement by Nintendo here. Also on Tuesday, while discussing the prospects of new parks at an investor conference, CFO Michael Cavanagh stated that "maybe five years down the road, we'll be opening in Beijing." Moves like this cause us to keep CMCSA at One despite it being at all-time highs. The company continues to innovate, always looking for ways to improve upon existing business, while at the same time looking to capitalize on new opportunities, such as Xfinity Wireless, which officially launched last week. Among CMCSA's movie studio, internet, home phone and cable offerings (including OTT and the cutting-edge X1 service), theme parks and now wireless service, we believe the company's diversification offers several runways for growth and also protection from weakness in any one sector. We reiterate our $45 target.

Danaher (DHR) ; $84.40; 1,150 shares; 3.51%; Sector: Life Sciences): Shares bounced back this week to outperform the overall market. On Monday, the company officially announced it would be increasing its synergy target for cost savings due to the Pall acquisition to $350 million over five years (from $300 million). In year one, DHR blew past its $60 million cost-saving goal, achieving synergies of $125 million. This year, the company is on track to save $75 million due to the acquisition, with expectations of $50 million in savings for years three to five. We are pleased to see the synergies are not only ahead of schedule but also better than expected. In addition to the guide up, we expect shares to further benefit as the company realizes revenue growth from its Cepheid and Phenomenex integrations, and increased cost-cutting efforts regarding the company's dental unit help improve margins. We reiterate our $94 target.

DXC Technology (DXC) ; $78.66; 1,000 shares; 2.85%; Sector: Tech Services): Shares underperformed the market this week, rebounding at first from a weaker period over the past week but struggling toward the end of the week. There was a mixed reaction to the company's quarterly announcement, where management reiterated their forward-looking guidance, previously delivered at the company's investor day at the end of March. Although the quarter was only in line, investors are much more focused on the pro-forma results of the combined entity. DXC's story is all about the back half of the year and into the coming years as the integration of HP Enterprise Services brings on cost and revenue synergy upside along with significant margin expansion. We believe shares will close the valuation gap on peers as the company proves it can execute on the transformation -- and management from both sides have a strong record in cost cutting and restructuring efforts from the past. We reiterate our $89 target.

iShares MSCI Eurozone ETF (EZU) ; $41.17; 500 shares; 0.75%; Sector: Europe): Shares traded flat this week, underperforming the S&P 500. We remind investors, when we initiated this position last week it was for two reasons: to gain exposure to the European markets (with minimal exposure to the U.K. given post-Brexit uncertainties), and gain exposure to the euro. You can read our initiation Alert here. We believe Europe is beginning to turn and feel that rather than choose a specific country or company, an ETF would be the best way to achieve our overall goals (market exposure and currency exposure). As we noted previously, we will not have a price target for EZU given the nature of the ETF (encompassing several companies), and our intent is to buy and hold for exposure to the broader themes.

Facebook (FB) ; $152.13; 1,000 shares; 5.51%; Sector: Technology): Shares traded up this week, outperforming the overall market. On Tuesday, the company announced a number of updates to the Facebook and Instagram platforms, Live Chat With Friends for Facebook, and location and hashtag stories for Instagram. The Live Chat With Friends update allows users hosting a Facebook Live session to invite friends to join them. Last year, the feature was released (on a limited basis) to "public figures," and as of Tuesday it became available to all users. Essentially, the update allows for multiple users to be featured in the same live broadcast regardless of their physical location. Location stories on Instagram allows users to view stories that are happening near them (based on location), or search for stories based on location. The new hashtag feature allows users to tag and search for stories based on their interests. The announcement came hours after competitor Snapchat (SNAP) released new features allowing users to further customize their stories, including location-based videos and the ability to allow friends to add to user stories. On Wednesday, the company announced it had closed deals with content creators including Vox Media, BuzzFeed, ATTN, Group Nine Media and others to produce shows for the company's upcoming video service. The announcement follows last week's statement that FB has signed a deal with Major League Baseball to air 20 games, and the e-sports organization ESL would be increasing the amount of content aired on the platform. With constant updates to its platforms and the increasing push to draw in more users via content-related plays, we remain bullish on the company's prospects for growth moving forward and reiterate our $175 target.

General Electric (GE) ; $27.45; 2,350; 2.34%; Sector: Industrials): Shares traded lower this week, underperforming the overall market as the company failed to impress investors during its presentation at the Electrical Products Group (EPG) conference on Wednesday. Last weekend, it was announced that the company had taken steps to help Saudi Arabia in achieving its Saudi Vision 2030 goals. In doing so, GE announced "a range of memorandums of understandings" and projects worth up to $15 billion (nearly $7 billion in GE technologies and solutions). Among other things, the goal of Saudi Vision 2030 is to reduce the country's reliance on oil in an effort to diversify its economy. On Wednesday, the company announced it had signed a $256 million agreement with Saudi Arabian, state-backed company Dussur to build gas turbines in the city of Dammam. While we are pleased the company is making deals and benefiting from President Trump's arrangements with Saudi Arabia, the bigger issue remains the company's ability to generate free cash flow. On Wednesday, CEO Jeff Immelt spoke at the EPG conference, during which he reiterated 2017 EPS guidance of $1.60 to $1.70, edging out consensus estimates of $1.63 at the midpoint. Immelt also stated the company is on track for $1 billion in cost reductions by the end of the year and sees over $1 billion in reductions achievable in 2018. While he sees 2018 as being "in line" with the goal of achieving 3% to 5% organic growth, his statement that $2 EPS for 2018 "would be at the high end of the range" (requiring increased cost reductions) is somewhat disappointing as the $2 fiscal 2018 target has been a key point of contention in the bull/bear debate. Management has set lofty goals (3% to 5% organic growth, 100-basis-point margin improvement and higher-quality earnings) for the company, but as Jim put it on Tuesday's Mad Money, this quarter is "do or die" for GE; it's all going to come down to cash flow. Should it fail to execute, we expect there to be increased pressure from activist investor Nelson Peltz's Trian Fund Management. While we remain patient (for now), thanks largely to the 3.45% dividend, we will be keeping an extra-close eye on this battleground name. We are maintaining our One rating, given that the stock appears to have found a floor just over $27 and is a steady income producer. We also view any potential shakeup in management (similar to the one at Arconic) as positive. We reiterate our $35 target.

Alphabet (GOOGL) ; $993.27; 150 shares; 5.40%; Sector: Technology): Shares traded higher, outperforming the overall market. On Tuesday, GOOGL hosted its Google Marketing Next conference, focusing on the company's latest advertising and marketing campaign innovations. During the conference, the company introduced Google Attribution, which integrates with existing marketing tools (AdWords, Google Analytics and DoubleClick) and allows marketers to see the path a customer takes from first being introduced to the product to finally buying it (as opposed to only seeing the last ad clicked before buying). The company also announced that it will soon be rolling out "store sales measurement," allowing businesses to track how online ads impact in-store revenue. With these announcements, Google continues to demonstrate why it deserves its reputation as the go-to company for online marketing campaigns. Also on Tuesday, a note was published by Morgan Stanley regarding the company's Waymo division. In it, the analyst made the case that Waymo (thanks in part to its partnership with ride-sharing service Lyft) could be worth as much as $70 billion. Going into the valuation, the analyst assumed that Waymo grows to 3 million cars, each averaging 65,000 miles a year and generating $1.25 per mile. This focus on the Waymo division is a major point that has propelled our investment thesis in Google, part of which focuses on the company's underappreciated efforts to move the company away from a sole reliance on Search advertising by building an ecosystem of products and services for consumers. Waymo is a long-term contributor to this vision, which also includes hardware, Google Cloud, YouTube and other bets whose potential has yet to be realized. For additional information on the new advertising products and Waymo (including Jim's commentary from Real Money on the Waymo topic), you can read our post from earlier in the week here. We reiterate our $1,100 target.

Hewlett Packard Enterprise (HPE) ; $18.83; 2,000 shares; 1.36%; Sector: Tech hardware): Shares traded higher this week, outperforming the overall market. We remind members that HPE will be reporting second-quarter earnings Wednesday after the close. We look forward to hearing how the company has been executing on its goal of creating a more focused, nimble company following the spinoff of its Enterprise Services segment (which was combined with CSC to form DXC Technology). In addition to this quarter's execution, we will be focusing on the progress of HPE's Micro Focus merger and be looking for any clues as to how the company may plan to spend its growing cash reserves. We expect shares to move higher as the company delivers on its transformation and makes use of its cash. We reiterate our $21 target.

KeyCorp (KEY) ; $17.99; 2,000 shares; 1.30%; Sector: Financials): Shares traded higher this week, outperforming the overall market. While we believe the company-specific factors are strong enough to propel shares higher over the long term (the investment banking division had a record first quarter and the First Niagara integration remains on track), we cannot discount the fact that bank stocks are closely tied to investor sentiment regarding the probability of an interest rate hike. Shares sold off sharply last week when investors feared we may not see two additional hikes this year. However, with the release of the Fed's FOMC meeting minutes this week (read our analysis here), it appears investors have regained confidence that the Fed will raise rates at June's meeting. Following the release, the probability for a June rate hike remained above 80% as opposed to being closer to 70% last week. We reiterate our $21 target.

Magellan Midstream Partners (MMP) ; $73.55; 1,150 shares; 3.06%; Sector: Energy): Shares traded flat to lower, underperforming the overall market as the stock gave up midweek gains following OPEC's meeting in Vienna on Thursday. Despite oil staging a small comeback over the last two weeks, shares remain range-bound. As we noted last week, while the stock is somewhat correlated to moves in oil, only about 15% of the company's business is exposed to the commodity, the other 85% being fee based. As we get into the second half of the year, with production continuing to climb (further pressuring the supply of capacity), we believe investors will begin to appreciate MMP as it is a crucial player in transporting oil out of the Permian (the hot spot for U.S. shale production). Recall that the company has also been investing in a third pipeline in the region in anticipation of the increased production. We view shares as undervalued at these levels. While the stock may remain range-bound in the near term, we continue to be patient as the company's over-4.7% yield is more than twice that of current 10-year U.S. Treasury yields. We reiterate our $89 target.

Nucor (NUE) ; $58.15; 1,500 shares; 3.16%; Sector: Industrials): Shares traded higher this week, outperforming the overall market. On Tuesday, NUE rallied over 3% on news of President Trump's budget proposal, which included $200 billion for infrastructure-related spending (read our take on the budget proposal here). On Wednesday, the company received an upgrade to Outperform from Credit Suisse, which also upgraded their view on the steel sector, stating their belief that prices for hot rolled crude (HRC) steel should bottom out this summer and begin to recover late in the third quarter. The bank noted while pressures from the auto industry may linger, increased demand from energy and construction should help in the recovery, along with any trade support helping to prevent domestic producers from being undercut by foreign competitors. We reiterate our $75 target.

Schlumberger (SLB) ; $70.09; 1,250 shares; 3.17%; Sector: Energy): Shares were pressured this week along with the entire energy sector, although the stock did appear to find support at around the $69 level, rebounding slightly on Friday. We are buyers at these depressed levels, especially for those who are underexposed. We preferred to wait until we see a steady turnaround in the name (especially at our current weighting) and did not want to be too quick to purchase on Friday when the stocks may have just been getting some relief, especially ahead of a holiday weekend. We want to remind investors that catching a bottom is virtually impossible, unless a little luck is involved. From a holistic view (not just in this situation), we would rather see a sign of a positive turn before buying back into the names as opposed to trying to perfectly time a bottom. We would prefer to buy a stock slightly up from the bottom, with confidence that the near-term consolidation has evaporated, rather than buy the name at (or around) that same level but prior to the bottom, where we have not yet confirmed a turnaround. SLB is trading below where it was when oil was in the $30s, a decline that we view as significantly underappreciating SLB's best-in-class cash generation, technological leadership, advancing domestic presence and international position for the longer-term recovery. We reiterate our $93 target.

Snap-On (SNA) ; $160.71; 625 shares; 3.64%; Sector: Industrials): Shares traded lower this week as investors took a negative read-through from Autozone's (AZO) and Advance Auto Parts' (AAP) rough quarter. We view the read-throughs as exaggerated, but we recognize that shares also remain pressured by the bear story, which is focused on the quality of franchise relationships -- you can read an explanation of that discussion here. Even though the recent quarter and management's commentary have seemingly refuted this issue, the bears come out strong when there are other potential reasons to find weakness, such as this week with the sluggish quarters of AZO and AAP. We view shares as attractive here for those who are unexposed as the company continues to post strong organic growth numbers, and we view the valuation as cheap, especially versus higher-valued peers (the stock is down 7% in the last three months). We believe the company's ability to innovate on the product front and to expand internationally is being significantly undervalued by the market. We reiterate our $200 target, and we will look to buy when we see evidence of a turnaround in near-term sentiment.

T.J. Maxx (TJX) ; $75.53; 1,400 shares; 3.83%; Sector: Consumer Discretionary): Shares trended higher this week, in line with the broader market. Last week, we upgraded TJX to One, believing the post-earnings selloff to have been overblown. As we stated previously, despite the retail sector being under pressure, thanks largely to Amazon (AMZN) , we believe TJ Maxx's off-price business model will allow it to thrive in the distraught bricks-and-mortar environment. While other stores, such as Macy's (M) , Nordstrom (JWN) and J.C. Penney (JCP) are closing locations, TJX is expanding existing brands and even launching a new home concept to complement its Home Goods segment. With the downsizing of these full-price retail competitors comes the inherent need for them to liquidate existing inventory. TJX can benefit by buying this excess, high-quality inventory at discounted prices. Given the tough sector backdrop, it is important to choose companies that, for one reason or another, have an edge over the competition. We believe the mix of TJX's off-price business model and its efforts to further diversify its home concepts will allow it not only to survive the current retail atmosphere but benefit from the distress of its full-priced competitors. We reiterate our $85 target.

TWOS

Apple (AAPL) ; $153.61; 820 shares; 4.56%; Sector: Technology): Shares traded lower this week, underperforming the overall market. On Monday, AAPL received an upgrade from RBC Capital Markets, expressing their belief that the company could reach a $1 trillion market cap within the next 12-18 months. As this is 25% above AAPL' s current market cap of about $800 billion, we don't view the call as unreasonable. In addition to expectations for margin expansion, the upgrade was largely based on the belief (shared by most analysts covering the company) that the next iteration of the iPhone will come at a significantly higher average selling price (ASP). While we agree, we maintain that beyond the next iPhone, the real growth story will be the company's ability to continue growing its services business. On Tuesday, Apple and Nokia settled all disputes regarding intellectual property and agreed to a multiyear patent license. Apple will make an upfront payment and follow-up payments during the term of the agreement (we do not expect this to materially impact earnings)., Nokia will also provide Apple with select network infrastructure products and services and AAPL will resume the sale of digital health products designed by Nokia in its retail stores and online. On Wednesday, AAPL launched a new, one-year curriculum designed around building apps using the company's Swift programming language. It is available for free on the company's iBooks Store. We continue to expect shares to climb as we approach the release of the next iPhone; however, we maintain our Two rating given that the stock is up over 30% year to date and the next iPhone is still a few months away. We reiterate our $165 target.

Adobe (ADBE) ; $141.89; 350 shares; 1.80%; Sector: Technology): Shares traded higher and outperformed the broader market this week as the Nasdaq surged to new all-time highs again. Adobe shares are up more than 36% year to date, powering to record high after record high as the Nasdaq has been the best performer of the major indices thus far in 2017. In particular, ADBE has benefited from the rotation into anything related to cloud computing -- ADBE being the market leader in creative cloud marketing. We note that the company does not report earnings until the end of June, when the high expectations baked into shares will be put to the ultimate test. Throughout this push higher, we have periodically taken profits on our position (the stock is more than 36% above our cost basis) in order to build cash and create room to buy shares on any pullback (read about our trade from last week here). Our decision to trim is not and was not reflective of any dismissal of Adobe's long-term prospects, but rather we have been wary of the virtually unimpeded surge higher. We could use ADBE as a source of funds should we need the cash in the near term. That being said, we continue to like the long-term story and would look to get back into the name/rebuild our position should there be any intermittent weakness. We reiterate our $150 target.

Arconic (ARNC) ; $27.42; 2,200 shares; 2.18%; Sector: Industrials): Shares traded lower this week, underperforming the overall market. On Monday, the company announced it had come to an agreement with activist investor Elliott Management. You can read our more detailed take on the decision here. In short, ARNC management confirmed that Elliott would nominate Christopher L. Ayers, Elmer L. Doty and Patrice E. Merrin for election (held on Thursday) as directors without opposition from the board of directors. In addition, ARNC nominated David P. Hess (current interim CEO) and Ulrich R. Schmidt. Recall that ISS recommended that shareholders vote for Schmidt (see our note here). On Thursday, Monday's news came to fruition when shareholders voted in Ayers, Doty, Hess, Merrin and Schmidt to the board of directors. With the proxy battle behind us, we can focus on the company's search for its permanent CEO. The search will be conducted by a committee of six directors and input from Elliott Management. Among others, potential CEO nominees include Larry Lawson (Elliott Management's nominee) and Hess. We will continue to monitor the management situation as it progresses and reiterate our $31 target.

Citigroup (C) ; $62.07; 1,500 shares; 3.37%; Sector: Financials): Shares traded higher this week, in line with the overall market. Last week, we lowered Citi to Two as share prices closed in on tangible book value. As we look to the back half of the year, we expect Citi to start seeing its investments into branded cards and the Costco portfolio acquisition begin to pay off. Near term, the upcoming June FOMC meeting remains at the top of investors' minds. Recall that bank stocks have largely been trading on expectations for two more hikes this year. While there was some worry last week that we may not see a hike in June (due to concerns that political turmoil would spill over into monetary policy), this week's release of the FOMC's May meeting minutes seem to have alleviated at least some of those fears. In line with expectations, the minutes confirmed that the Fed continues to expect to raise interest rates gradually over time, with eyes on June for the next potential hike. See our Alert on the meeting here. We reiterate our $66 target.

Dow Chemical (DOW) ; $61.06; 1,475 shares; 3.26%; Sector: Chemicals): Shares traded lower as investors await updates regarding the company's merger with DuPont (DD) . Last Friday, during President Trump's international trip, Dow Chemical signed two agreements in Saudi Arabia with the goal being to "advance the company's strategic, innovation agenda" and help support Saudi Arabia in achieving its "Vision 2030 economic diversification and advanced manufacturing plan." Per the agreement, Dow will construct a cutting-edge manufacturing facility for the purposes of producing an assortment of polymers. We are pleased to see the company continue to make deals as we await completion of its merger with DuPont. As we stated previously, the real value in this holding will be unlocked when the combined DOWDuPont entity is broken up into three companies (expected to happen within 18 months following the Dow/DuPont merger at the end of August). We reiterate our $70 target.

Southwest Airlines (LUV) ; $60.67; 1,000 shares; 2.20%; Sector: Transportation): Shares continued to power higher this week as the entire airline industry got some love. LUV stock has been creeping toward all-time highs for several weeks as shares continue to recover from the post-earnings pullback. You can read our earnings analysis here. Recall that we recommended members be buyers on that weakness (reiterating at the bottom of our trade here). The airlines especially performed well this week as the industry appears poised to continue to raise prices, a sign of solid demand and improving fundamentals. Even so, we are downgrading the stock to Two from One this week, merely as a reflection of valuation and the recent rally. We believe the stock can continue to move higher over the long term, but would rather be buyers in the high $50s.

Newell Brands (NWL) ; $53.19; 1,300 shares; 2.50%; Sector: Consumer Discretionary): Shares traded higher this week but they underperformed the overall market. On Friday, NWL announced it would be selling its winter sports unit for an estimated $240 million (just under 10x the unit's 2016 EBITDA of $25 million). The sale comes as the company seeks to accelerate growth by narrowing its focus and strengthening its remaining brands. We continue to like NWL as we approach the back half of the year. In its last quarter, the company beat estimates, facing its toughest comps of the year. While the consumer discretionary sector has been under pressure, as buyers increasingly choose to stay at home and shop online, we are encouraged by the estimated $1 billion in synergies that is expected to result from the Jarden integration and the fact that NWL is targeting $1 billion in e-commerce growth over the next four years. From a broader perspective, we like what NWL does for the portfolio overall. While the company may not be as exciting as a GOOGL or FB, it is a highly diversified company, sporting 2.5% core sales growth and operating in numerous segments (see the company's various brands here). Adding to its solid fundamentals, the company's management team is best-in-class. We maintain our Two rating, reflecting the over 14% move the stock has had since reporting its last quarter. We reiterate our $60 target. 

NXP Semiconductors (NXPI) ; $108.00; 550 shares; 2.15%; Sector: Information Technology): Shares traded flat this week as investors await news on the company's acquisition by Qualcomm QCOM. On Tuesday, it was announced that Slovenia recently released a new "multilateral passenger transport ticket" as part of its goal to simplify public transportation. View the full report here. On Thursday, NXPI announced, "the Ecuadorean government has again chosen NXP's SmartMX2 secure microcontroller for the country's new multipurpose contactless citizen ID card." View the official release here. The announcements give a glimpse into the ways NXPI chips influence our lives, often without us even realizing it. For now, we will be keeping our eyes open for any news related to the QCOM takeover bid. Additionally, despite shares edging closer to the deal price (and our price target), we will be holding on unless we are in desperate need of cash as we want to see how things play out. We reiterate our $110 target.

PepsiCo (PEP) ; $117.89; 700 shares; 2.99%; Sector: Consumer Staples): Shares moved higher this week, outperforming the overall market. We continue to believe the company can beat guidance by the end of the year. As we've mentioned, PEP is an important holding that generates solid organic revenue growth while allowing us to increase the diversification of the overall portfolio. The importance of diversification is even clearer after last week's one-day selloff, this week's oil volatility and as next month's FOMC meeting approaches (it is largely expected that the Fed will raise rates, but nothing is set in stone). We reiterate our $120 target.

Starbucks (SBUX) ; $63.30; 1,300 shares; 2.98%; Sector: Consumer Discretionary): Shares traded higher, outperforming the overall market. The stock's move up this week, after last Friday's over 2% move, is indicative of a shifting sentiment in the name. With investors setting their sights on the back half of the year, expectations for an acceleration of comps are rising thanks to easier compares and hopes that the mobile ordering through-put issue that plagued the company in the first half of the year has been resolved. We have faith that management will be able to correct the problem and we would be looking to add to the name in the mid-$50s as long as the back-half story remains intact. We reiterate our $65 target.

Walgreens Boots Alliance (WBA) ; $81.25; 500 shares; 1.47%; Sector: Health Care): Shares trended higher this week but failed to perform in line with the overall market. On Tuesday, CEO Stefano Pessina said the company has begun experimenting with new storefront layouts, claiming the company needs something "radically different." Regarding the Rite-Aid (RAD) merger, we remain unenthused and are hoping for a decision either way (approval or rejection) so the company can move forward. In the meantime, shares remain range-bound, vacillating in the low to mid-$80s. This has become somewhat of a predictable pattern as the merger uncertainty puts a ceiling on the stock, but the potential also provides a floor. While we are not traders, we have always viewed levels near $80-$81 as buying opportunities for WBA and are incremental sellers on strength into the high $80s. We are more sensitive to the retail pressures that face WBA now, however, so we will likely wait for a resolution on the Rite Aid merger before buying back shares (unless there is a severe, irrational move lower). We reiterate our $90 target.

Wells Fargo (WFC) ; $52.41; 1,900 shares; 3.61%; Sector: Financials): Shares traded lower this week, underperforming the overall market. On Wednesday, Moody's reaffirmed WFC's credit rating, stating the bank's outlook "remains stable." As we've stated, WFC is a high-quality bank coming off a recent scandal. While it will take time for the company to put the scandal behind it, we believe those who are willing to be patient will be rewarded in the long term. Eventually, investors will forgive the bank for its transgressions. In the meantime, the depressed share prices have pushed the company's yield up to around 2.88%, paying investors as they wait for the turnaround to take hold. We are more buyers than sellers at these levels, but want to see the stock gain some momentum before making any moves. We reiterate our $60 target.

Western Digital (WDC) ; $90.01; 550 shares; 1.79%; Sector: Technology Hardware): Shares trended higher this week, in line with the overall market, as local Japanese reports indicated that WDC has proposed nearly an $18 billion bid for the Toshiba memory business. The development comes as a positive surprise given that prior reports had called out WDC as the low bidder involved in the process. Recently, the two sides had engaged in a back-and-forth arbitration debate, with WDC management claiming any sale would need to go through Western Digital due to its current interest in its joint venture with Toshiba. While Toshiba may prefer to accept higher bids, the failing company also does not appear capable of stringing out this process as it searches for funding. Further, the reports highlight the Innovation Network Corp. of Japan and the Development Bank of Japan as partners in the bid, aiding WDC in its efforts to keep leverage at manageable levels. Although the two companies have not commented on the reports, the markets are viewing the news as a win for WDC, which would gain controlling interest over the memory business and further expand its exposure to NAND, an industry that continues to show strong demand and fundamentals. Risks surrounding the bid still exist (e.g., reports have not been fully confirmed, the two sides remain at odds and an eventual deal could be met with antitrust hurdles), explaining why we have kept our exposure low, but bets skew toward positive for now. We reiterate our $108 target.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, AGN, APA, XEC, CMCSA, DHR, DXC, FB, GE, GOOGL, HPE, LUV, KEY, MMG, NUE, NWL, SNA, WDC, ADBE, ARNC, C, CSCO, DOW, PEP, NXPI, SLB, SBUX, TJX, WBA, WFC and EZU.