Jim Cramer’s top 10 things to watch in the stock market Friday
Top 10 things to watch on Friday, October 10 1. The gold rally has been one of the biggest market stories of the week, and gold miners’ stocks are soaring, too. Some profit taking was likely on the back of yesterday’s decline in both bullion and miners. Raymond James this morning raised its price targets on two of my favorites, Newmont ($84 to $96) and Agnico Eagle ($155 to $182). Gold futures also rose above $4,000 per ounce. 2. Cisco Systems and Arista Networks, both data center networking plays, achieved price target increases at Morgan Stanley. Demand is strong. Analysts maintained their buy rating on Cisco, which we own in the Club name as a low-beta play in the data center, from $73 to $77 per share. Buy points rose from $140 to $171 on Arista. 3. Chinese antitrust regulators have launched an investigation into American chipmaker Qualcomm over its acquisition of vehicle technology supplier Autotalks. The stock is down more than 1% from its morning lows. This isn’t the first time we’ve seen Beijing target US tech firms ahead of trade talks with Washington. 4. Marvell Technology gets its due. Oppenheimer liked it and raised his buy rating target on the stock from $95 to $115 after a meeting with management. Marvell has a deep and broad portfolio of AI data center products, from custom chips to networking and optics. Meanwhile, Susquehanna increased its PT on chipmaker TSMC to $400 from $300. 5. We are heading towards a slightly higher opening this morning, which is the last day of a mixed week in the market. The Dow is down about 0.9% year to date, while the Nasdaq is up about 1%. The S&P 500 gained a more modest 0.3%. The federal government shutdown is still in effect. Third quarter earnings season begins next week. 6. Levi Strauss shares fell more than 7% this morning after the denim maker warned of higher tariff costs weighing on its current quarter margins. Investors were beyond optimistic guidance and a better-than-expected third quarter. Levi is mitigating the tariff impact through targeted price increases and a shift away from wholesalers. 7. Bernstein raises Delta Air Lines price target to $74 from $71 after yesterday’s solid quarter and strong guidance; That pushed the stock up more than 4%. Shares rose modestly this morning. Bernstein analysts also maintained their buy rating. Most other Wall Street research firms increased their Delta PTs and maintained their buy ratings. 8. Wells Fargo lowered price targets for paint and coatings companies Sherwin-Williams ($395 from $400) and PPG ($132 from $135) but maintained buy ratings on both stocks. Analysts think the U.S. housing market will continue to face headwinds, but industrial demand may stabilize or even improve. 9. Bank of America lowered price targets for homebuilders: DR Horton ($165 from $175), KB Home ($62 from $67), Lennar ($125 from $133), PulteGroup ($140 from $145), Toll Brothers ($150 from $155). Analysts noted that Washington is focusing on housing affordability because “housing demand is stagnant and incentives remain high.” 10. Barclays raised its General Motors price target to $77 from $73 and maintained a buy rating above earnings. Analysts expect much of the auto industry to lag behind but worry about soft guidance to manage expectations. Barclays maintained its Ford price target at $11 and its hold rating. 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 GUARANTEE IS MADE.
