My top 10 things to watch Friday, Nov. 21 1. The S & P 500 is headed for a higher open this morning after New York Federal Reserve President John Williams suggested that the central bank could lower interest rates again next month. Expectations for a 25-basis-point rate cut at the December meeting jumped to 70% right after his comments, a huge increase from the roughly 39% odds Thursday, according to the CME FedWatch tool . The stock market is coming off a brutal reversal during yesterday’s session. The S & P 500 is still on track for a big weekly loss. 2. Bitcoin prices are down more than 3% this morning, extending the cryptocurrency’s recent weak performance. In fact, Bitcoin hit its lowest levels since April Thursday. The decline in crypto markets is hurting data center plays, as the overlap with hot-money ideas is significant. 3. Jacobs Solutions delivered a good quarterly earnings report that checked off all the boxes. Still, the stock collapsed. Jacobs sits at the intersection of artificial intelligence, semiconductors, and infrastructure themes, which the market has been more sensitive to. Baird downgraded the stock to a hold from a buy, and lowered its price target to $146 from $161. Analysts said AI could pose additional revenue headwinds going forward. 4. Gap shares are up more than 6% premarket after the apparel retailer posted outstanding fiscal third quarter results last night. Gap blew past expectations for company-wide comparable sales, but its athleisure brand, Athleta, was an eyesore. CEO Richard Dickson is a hard-working genius, though. Bank of America raised its price target on Gap to $27 from $23. 5. UBS hiked Corning’s price target to $109 from $100, and maintained a hold rating on the stock. The firm said data center spending isn’t going to let up anytime soon, which is good news for this fiber-optic cable producer. The Club bought more Corning on Thursday on the market’s selloff. 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 from hold following the cybersecurity company’s quarterly earnings yesterday. Analysts, who left their $157 price target unchanged, cited Palo Alto’s decelerating revenue growth. I thought it was a great quarter, especially all of the deal announcements. For the Club’s part, we have a buy rating on shares and a price target of $225. 7. Bernstein raised its price target on Ross Stores to $159 from $147. The analysts, who maintained a hold rating on the stock, see sales improving due to a new digital marketing campaign targeting younger consumers. We still like rival TJX, the parent of Marshalls, more. 8. Bath & Body Works stock fell again this morning after the company reported disappointing third-quarter earnings yesterday and management cut its full-year outlook. This quarter was a total disaster. Telsey lowered its price target to $17 from $38. 9. Oppenheimer started coverage of IBM with a buy and $360 price target. The analysts pointed to the company’s strong software business, sustained double-digit revenue growth, and consulting growing in the low single digits. Oppenheimer said shares should re-rate higher when investors better appreciate the company’s pivot to software. 10. Is commercial real estate in trouble? Starwood Property , the best of the best, keeps going down. The stock is currently yielding 10.95%. 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.
