10 things to watch in the stock market on Friday, plus more optimism for Apple’s AI plans

1. The stock market is expected to open slightly lower on Friday after both the S&P 500 and Nasdaq Composite Index fell on Thursday. After hitting intraday highs to start the day, the S&P 500 and tech-heavy Nasdaq closed down 0.25% and 0.79%, respectively. The Dow bucked the trend, rising 0.77%.
2. The main cause of Thursday’s reversal was an ugly reversal of club names. NVIDIA This comes as profit-taking in AI stocks has temporarily stalled momentum.Meanwhile, Melius Research has raised its price target for the leading artificial intelligence chip maker to $160 per share from $125.
3. Nike Oppenheimer upgraded the company to a “buy equivalent.” The firm also raised its price forecast for the stock to $120 from $110, implying an upside of more than 25% from Thursday’s closing price. Analysts believe many of the footwear and apparel giant’s challenges and expectations are priced into its stock price, which could see a gradual upside.
4. Bernstein analyst Toni Sacconaghi raised his price target on the club. apple Monetization opportunities from AI could drive the stock to $240 from $195 a share, up more than 14% from Thursday’s closing price. This is another notable prediction from an analyst who had rated the stock at or above market average since 2018, who raised the iPhone maker’s rating to “equivalent to buy” in late April.
5. Northrop Grumman Bernstein downgraded the company to a “hold equivalent” rating, saying a key driver of optimism for defense stocks has lingered longer than expected, forcing analysts to revise their outlook for the stock. The new price target was lowered to $477 per share from $535.
6. DA Davidson begins reporting on the club’s name Palo Alto Networks Recommendation: Buy, price target: $380 per share. The firm added cybersecurity stocks to its “Best of Breed Bison” list. Analysts argued that Palo Alto’s platform strategy is working and leading to bigger deals. The company is focused on cRPO and ARR growth, not revenue, which is consistent with our argument from last month.
7. Morgan Stanley upgraded Freeport McMoRan The firm upgraded its rating to equivalent to buy, saying expectations of higher copper and gold prices would benefit mining companies. Alcoa The company rated aluminum prices as a buy.
8. SnowflakeWells Fargo cut its price target on the stock to $200 from $225, but analysts maintained a buy recommendation on the data-analysis stock, which has had a tough time since then-CEO Frank Slootman announced his retirement in February along with weaker-than-expected earnings guidance.
9. CarMax Shares rose slightly on Friday after the company reported slightly better-than-expected profits despite weaker revenue. CarMax’s quarterly profit fell 33% from a year ago, reflecting the challenges facing used-car sellers.
10. JPMorgan lowered its price target. Kroger The company’s shares fell from $60 to $58 a share, but analysts maintained their overweight rating on the company, citing conservative second-quarter outlook.

Sign up for my Top 10 Morning Thoughts on the Markets Free Email Newsletter

(look here You can see a complete list of Jim Cramer Charitable Trust’s holdings here.

Subscribers to Jim Cramer’s CNBC Investment Club receive trade alerts before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling shares in his charitable trust’s portfolio. If Jim talks about a stock on CNBC television, he waits 72 hours after issuing the trade alert before executing the trade.

The above Investment Club information is subject to our Terms of Use and Privacy Policy, as well as our Disclaimer. Receipt of any information provided in connection with the Investment Club does not create any fiduciary duty or obligation, and no particular results or benefits can be guaranteed.