10 key things to watch in the stock market Friday, including two AI gainers

1. U.S. stock futures rose Friday after the PCE price index, the Fed’s favorite inflation gauge, came in exactly as expected, rising 0.2% month over month and 2.5% year over year.

2. Dell‘s stock is up more than 4% in extended trading after the company’s beat and-raise quarterly earnings release Thursday. Dell reported $25 billion in revenue vs. analysts’ estimate of $24.14 billion, and adjusted earnings per share of $1.89 vs. $1.71 expected — driven by strong demand for AI servers. Dell has become a top seller of servers and systems for AI data centers, including those using Nvidia chips. Management also raised its full-year outlook. Morgan Stanley reiterated its $136 price target.

3. Shares of Marvell Technology jumped more than 10% after management on Thursday guided to accelerating growth in the third quarter driven by strong AI demand that was ahead of analysts’ expectations. The chipmaker reported a sales beat and in line earnings for the second quarter. The best read-through is Club stock Broadcom, which reports next Thursday and also makes chips for the AI buildout.

4. Ulta Beauty reported a double miss (sales and earnings) and cut its full-year earnings outlook. Several analysts lowered their price targets, while Raymond James downgraded it to outperform from strong buy. Shares are down 7%, giving back most of the Buffett bump. (Warren Buffett’s Berkshire Hathaway unveiled a $266 million bet on Ulta Beauty earlier this month.)

5. Club stock Best Buy price target increased to $115 from $100 at Citi and $123 from $106 at UBS after an earnings beat Thursday. We discussed four reasons to be excited about the retailer’s future in our earnings analysis.

6. Kohl’s stock was downgraded at Cowen, to hold from buy, on challenges in core apparel and footwear. In addition, the analysts cut its price target to $21 from $25.

7. Lululemon missed on sales but earnings per share of $3.15 topped Street estimate of $2.93. Third-quarter guide is similar with light sales and solid earnings. 

8. Intel executives are exploring strategic options, including splitting its product and foundry business.

9. Dollar General downgraded to equal weight (hold) from overweight (buy) at Morgan Stanley after a brutal quarter. The discount retailer also slashed its forecast for the full year. Jim Cramer said Walmart is partly to blame for the ugly performance.

10. MongoDB shares are surging after the database software maker reported on Thursday reported a beat and raise.

Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free

(See here for a full list of the stocks at Jim Cramer’s Charitable Trust.)

As a subscriber 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 trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER.  NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.  NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.