Jim Cramer’s top 10 things to watch in the stock market Friday
Top 10 things to watch on Friday, November 21 1. The S&P 500 is headed for a higher open this morning after New York Federal Reserve President John Williams suggested the central bank could cut interest rates again next month. Expectations for a 25 basis point rate cut at the December meeting jumped to 70% immediately after his comments, a big jump from around 39% on Thursday, according to the CME FedWatch tool. The stock market is experiencing a sharp reversal in yesterday’s session. The S&P 500 is still on track for a big weekly loss. 2. Bitcoin prices fell more than 3% this morning, further exacerbating the cryptocurrency’s recent poor performance. In fact, Bitcoin has reached its lowest levels since Thursday, April. The decline in crypto markets is hurting data center plays as it is important to align with hot money ideas. 3. Jacobs Solutions delivered a good quarterly earnings report that met all expectations. Still, the stock crashed. Jacobs is at the intersection of artificial intelligence, semiconductors and infrastructure themes, to which the market is more sensitive. Baird downgraded the stock from buy to hold and lowered its price target to $146 from $161. Analysts said artificial intelligence could create additional revenue headwinds going forward. 4. Headroom rose more than 6% premarket after the apparel retailer reported outstanding third-quarter results last night. Gap beat expectations on comparable sales companywide, but sportswear brand Athleta was an eyesore. But CEO Richard Dickson is a hard-working genius. Bank of America raised its price target for Gap to $27 from $23. 5. UBS raised its price target on Corning to $109 from $100 and maintained its hold rating on the stock. The company said data center spending won’t decrease anytime soon, which is good news for the fiber optic cable maker. The club purchased more Corning on Thursday amid a sell-off in the market. After all, our discipline has always been to look for high-quality names to buy when the market is oversold. 6. HSBC downgraded Club holding Palo Alto Networks to sell after the cybersecurity company’s quarterly earnings report yesterday. Analysts who kept their $157 price target unchanged pointed to Palo Alto’s slowing revenue growth. I thought it was a great quarter, especially all the deal announcements. For Club, we have a buy rating and a $225 price target on the shares. 7. Bernstein raised its price target on Ross Stores to $159 from $147. Analysts holding the stock steady believe sales are rising due to a new digital marketing campaign targeting younger consumers. We still like rival TJX, parent of Marshalls, better. 8. Bath & Body Works shares fell again this morning after the company reported disappointing third-quarter earnings yesterday and management lowered its full-year outlook. This quarter was a complete disaster. Telsey lowered its price target to $17 from $38. 9. Oppenheimer started coverage of IBM with a buy and a $360 price target. Analysts noted the company’s strong software business, sustained double-digit revenue growth, and consulting showing low-single-digit growth. Oppenheimer said the shares should score higher again once investors better appreciate the company’s push into software. 10. Is commercial real estate in trouble? Starwood Property, the best of the best, continues to decline. The stock currently yields 10.95%. 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 would wait 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.
