Jim Cramer’s top 10 things to watch in the stock market Friday

1. Stocks were taking a breather Friday after the S&P 500 and Nasdaq closed the prior session at record highs. While the Dow has been lower this week, the S&P and Nasdaq are solid weeks on the back of two encouraging inflation reports.
2. Adobe surged after an extraordinary quarterly earnings report on the high and low end. The stock had been punished in recent months, but this was a tour-de-force quarter. The software maker also raised its full-year guidance.
3. Price-target boosts for Club name Broadcom haven’t stopped after the chipmaker’s strong quarter Wednesday night. Deutsche Bank ($1,900 from $1,500), Citigroup ($1,750 from $1,560) and Baird ($1,950 from $1,500) are the latest Wall Street shops to do so. All three firms kept their buy-equivalent ratings, too. In a piece for Club members, we broke down the three reasons why we expect Broadcom’s stock to keep moving higher.
4. Piper Sandler downgraded Huntington Bancshares to a sell-equivalent rating from hold. Wow. The Ohio-based regional lender has entered the penalty box after lowering its net interest income guidance earlier this week. That’s a key metric in the banking industry. After losing nearly 8% over the past four sessions, the stock is moving lower again Friday.
5. The price-target cuts keep coming for Darden Restaurants ahead of the company’s fiscal fourth-quarter earnings report next Thursday morning. Barclays went to $180 from $187, while Stephens lowered to $165 from $170. They’re at least the fifth and sixth firms to cut their PTs on Darden this week. Olive Garden must be really weak. It also owns LongHorn Steakhouse and Yard House among other chains.
6. Bank of America reinstated coverage of Club holding Coterra Energy with a buy rating and price target of $34 a share, implying more than 25% upside from Thursday’s close. Coterra’s sizable exposure to natural gas is finally a positive for the producer following a miserable decline in the commodity’s price to start the year. Coterra CEO Thomas Jorden explained to me on “Mad Money” earlier this week how the company can benefit from the artificial intelligence boom.
7. Morgan Stanley downgraded Twilio to a hold-equivalent rating from overweight, saying consumer health could hurt the maker of communications software. The firm’s new price target of $60 a share, down from $70, implies less than 8% upside based on Thursday’s close. Twilio is the enterprise software stock that no one needs.
8. Carrier Global, a truly great company, received a price target bump from Barclays, which went to $81 a share from $79. That would represent more than 26% upside ahead from Thursday’s close. Of all the U.S. HVAC suppliers, the analysts believe Carrier will benefit the most from increased global penetration of HVAC systems.
9. Tesla shares were in the green again Friday, on pace for their third winning day in a row, after the electric vehicle maker’s shareholders voted to reinstate CEO Elon Musk’s $56 billion compensation package. A re-energized Musk is an exciting possibility.
10. Loop Capital upped its price target on Club name Costco to $940 a share from $890, with analysts expressing optimism on the membership retailer’s leverage potential. The firm also pointed out that Costco had good same-store sales numbers in May. Earlier this week for Club members, we looked at what Costco’s online expansion could mean for its stock.

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