Jim Cramer’s top 10 things to watch in the stock market Friday
My top 10 things to watch is Friday, June 12 Day 1 is today. SpaceX. The largest IPO of all time with $75 billion. We want a 25% to 30% increase in the deficit. Anything more than that encourages flip-flopping and leaves the company with a weak shareholder base. I don’t want to see what happens to Figma. I don’t want a repeat of Cerebras. 2. Stock futures are rising on hopes of a peace deal between the United States and Iran that would reopen the Strait of Hormuz. Will we see one before next week’s G7 Summit? Oil is moving that way, with US benchmark WTI falling more than 3% to below $85 a barrel. The 10-year Treasury yield was little changed. This is a good setup for today’s session. 3. Along with its earnings, Adobe also announced the departure of CFO Dan Durn to join Marvell. Software for semiconductors. This is the sign of the market. The search for a successor to Shantanu Narayen, Adobe’s long-time CEO, was already underway. Even though there was an improvement in the top and bottom lines during the quarter, the stock was down 7%. There is never any acknowledgment that things are slowing down. Downgrades from Stifel, Wolfe Research and Evercore ISI. 4. Advanced Micro Devices was upgraded to a hold buy at Citi. While analysts were already optimistic that agency AI was a significant tailwind for AMD’s central processing unit (CPU) business, they now view AMD as a legitimate second source behind Club name Nvidia in the graphics processing unit (GPU) market. Citi expects Meta to buy significantly more AMD chips than the Street is currently modeling. 5. JPMorgan raised its Nokia price target to $21 from $14. This makes perfect sense here. Nokia has reinvented itself as an AI networking play and has a partnership with Nvidia. On “Mad Money” earlier this month, I suggested waiting for a pullback before initiating a small Nokia position. Anyway, we made it through this retreat. 6. Big changes coming for Nasdaq 100: Astera Labs, CoreWeave, Nebius, Rocket Lab and Teradyne will join before the June 22 open. There are a lot of AI infrastructure names out there. Charter Communications, Cognizant Technology Solutions, Insmed, Verisk and Zscaler are among the companies removed from the index. A lot of money follows the Nasdaq 100 through Invesco’s popular QQQ ETF. 7. Wow: Bank of America lowered price targets on its medical device group. Intuitive Surgical, Medtronic, Stryker, Becton Dickinson and Boston Scientific. This was a very strong group, but things have gone south since the fall. Serious price/earnings compression. 8. Williams-Sonoma was reassigned as an acquisition at Bank of America. The price target remains at $250, implying around 15% upside. Analysts said the retailer was at a “demographic advantage” thanks to its more resilient customer base. CEO Laura Alber has done a great job positioning WSM as affordable luxury. Our exclusive retailer for the club is TJX, which plays on the value side of the spectrum with HomeGoods. 9. Barclays lowered its FedEx price target to $425 from $450 to accommodate FedEx Freight spinoff. FedEx remains one of Barclays’ top acquisition ideas in the transportation space. Analysts see further upside in earnings and valuation as the economy improves and FedEx’s network integration progresses. We have both FedEx and FedEx Freight for the club. 10. Alphabet’s Google is a threat to Zillow and other real estate portals because the tech company’s expansion into real estate advertising increases competitive pressure, Keefe Bruyette said. Goldman argued the same and lowered its price target on Zillow to $40 from $53. Sign up for free for my Top 10 Morning Thoughts on the Market email newsletter (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
