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

CNBC Finance

4 min read

My top 10 things to watch Friday, Dec. 12 1. Investors continued to rotate out of tech and into value as the Dow looks to add to yesterday's record while the Nasdaq tracks for a lower open. S & P futures were relatively unchanged after the broad-market index also hit a record close yesterday. The Club holds its December Monthly Meeting livestream, exclusively for members, at 12 p.m. ET. 2. Lululemon Athletica reported just OK quarterly earnings yesterday. The company grew revenue dramatically, but execution failed this year amid a host of challenges including tariffs. Plus, CEO Calvin McDonald announced that he will leave the athleisure giant at the end of January after more than seven years. Jefferies analysts upgraded Lululemon stock to a hold from sell as a result. That's pretty brutal given MacDonald's multiple years of success before this. The stock was up over 10% ahead of the open. 3. Club holding Broadcom shares dropped 5% this morning after a misunderstood quarterly earnings report. The chipmaker posted better-than-expected earnings and raised guidance. Still, investors were concerned with commentary from CEO Hock Tan that could indicate customers moving chip development in-house. We disagree with this interpretation and thought it was an overall strong quarter. 4. Costco posted better-than-expected quarterly earnings late yesterday, supported by higher membership fee income, gross margins and net sales. Still, the results weren't enough to break Wall Street's negative view on the retailer as shares fell early this morning. We think a rebound for this Club stock is still likely though after viewing results. We kept our buy-equivalent 1 rating , but did lower our price target to $1,050 from $1,100 on recent weakness. 5. Citi names Club holding Linde a top pick in the sector after a positive investor meeting. The stock has been a terrible performer as of late, down 6% over the past month. Analysts say the pullback is overdone though, and that the industrial gas giant still has a high-quality project backlog. 6. RH , formerly Restoration Hardware, went with pizazz and led the post-earnings conference call with plans to open an RH Paris store. The luxury furniture company reported year-over-year increases in the third quarter despite the worst U.S. housing market in 50 years. EPS missed and revenue matched. Guidance on revenue growth fell short though. Analysts cut their RH price targets, with Stifel also downgrading it to a hold from buy. 7. Guggenheim upgraded disappointing portfolio name Bristol Myers Squibb to a buy from hold going into 2026, citing a "much more compelling value-oriented and pipeline-driven risk/reward." The stock has been on an upswing since its year-to-date lows in late October, but is still down 9.5% for 2025. For the Club, we want to see more out of the company's schizophrenia drug Cobenfy. 8. Fermi shares plunged nearly 44% this morning to $8.5 each after the power company said that its first tenant terminated a $150 million funding deal. Fermi, co-founded by Republican former Texas Governor and ex-Energy Secretary Rick Perry, traded as high as $37, the day after its Oct. 1 debut. The IPO was priced at $21. 9. JPMorgan raised its Alphabet price target to $385 from $340 and kept its buy rating. The analysts remain positive on Mag 7 stocks, of which the Google parent is one. JPMorgan's top picks heading into next year are Alphabet, along with Club name Amazon , DoorDash , and Spotify . 10. Ciena , a high-speed connectivity provider, delivered a clean beat-and-raise quarter with terrific guidance yesterday. There were lots of price target increases from analysts updating their outlooks on a stock that has nearly tripled this year. Some PTs were set below where Ciena stock closed yesterday at $242. That wasn't the case with Barclays. Analysts at the bank went to $279 from $138 and kept a buy rating on Ciena. 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.

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

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