Jim Cramer’s 10 Stock Market Predictions for Friday

Key Takeaways from Today’s Market Moves

Here are ten crucial developments shaping the market landscape today:

1. Inflation Cools Slightly: The September Consumer Price Index (CPI), released after delays, registered at a 3% annual rate. While still above the Federal Reserve’s 2% target, the figure provided a boost to investor sentiment. This deceleration, however slight, suggests that the Fed’s tightening policies may be starting to take effect, potentially paving the way for a more dovish stance in the future. The market’s positive reaction indicates a sensitivity to any signals that could forestall further aggressive rate hikes.

2. Intel’s Resurgence: Shares of Intel surged nearly 7% following a better-than-expected quarterly report. Strong PC demand, driven by a refresh cycle amplified by the larger installed base post-COVID and facilitated by Windows 11, played a significant role. Furthermore, the ongoing build-out of AI infrastructure is fueling demand for server CPUs. Supply chain constraints, however, capped potential revenue upside during the quarter, highlighting the delicate balance between demand and capacity in this critical sector. This resurgence points to Intel’s successful navigation of a challenging environment, leveraging both consumer and enterprise demands.

3. Data Storage Tailwind: Intel’s positive performance is translating into positive implications for data storage players like Western Digital, Seagate, and Micron. While market expectations are partially reflecting this sentiment, underlying demand significantly outstrips supply. This dynamic creates a potentially lucrative environment for these companies, as the expanding digital economy necessitates ever-increasing storage capacity. Analysts anticipate continued growth in the data storage sector, fueled by both traditional and emerging applications.

4. P&G’s Strong Quarter: Procter & Gamble exceeded expectations, posting earnings of $1.99 per share versus an anticipated $1.90. The beauty segment stood out with a 6% organic sales increase. The company reaffirmed its full-year earnings and sales guidance issued in July, signaling confidence in its business trajectory. Furthermore, P&G halved its tariff headwinds estimate to $400 million, suggesting a more favorable trade environment or successful mitigation strategies. P&G’s robust performance validates its strategic focus on premiumization and innovation within its core product categories.

5. Beyond Meat’s Reality Check: Beyond Meat’s volatile ride, including a surge of 600% over three days, has lost momentum, with analysts remaining skeptical. Mizuho Securities downgraded its price target to $1.50 and maintained a sell rating, citing limited expectations for sales uplift from Beyond Meat’s Walmart partnership. This assessment underscores the challenges faced by alternative meat companies in achieving mainstream adoption. Market realities are tempering earlier enthusiasm, forcing a more realistic evaluation of the company’s long-term prospects.

6. Quantum Computing’s Potential: Quantum computing stocks, including IonQ, Rigetti, and D-Wave, continued their upward trajectory, although at a slower pace than the previous day’s rally. The continued analyst buy ratings suggest strong belief in the technology, even if the initial funding amounts are not material, that these companies are developing and the long-term prospects of quantum computing remain a strong investor sentiment. The small amount of money may not be impactful, but the continued buy ratings from analysts means that there is positive investor sentiment overall.

7. Ford’s Potential Revival: Bank of America raised its price target on Ford to $14.50 from $13.50, citing the company’s underlying strength despite a fire at an aluminum supplier that complicated its guidance. The stock responded positively, rising over 3%. This suggests that investors are focusing on the core business operations and the potential for long-term growth. Ford’s strategic investments in electric vehicles and its ongoing restructuring efforts may be starting to gain traction in the market.

8. Deckers Outdoors’ Mixed Signals: Deckers Outdoors, known for its Hoka and Ugg brands, witnessed a 12% share decline following a full-year revenue forecast that missed expectations. While UGG sales outperformed projections, Hoka sales fell short. This mixed performance sparked a wave of analyst price target cuts, raising questions about the company’s future growth trajectory. The question now is, does this foreshadow a resurgence of Nike?

9. Union Pacific’s Upward Revision: Citi increased its price target on Union Pacific by $2 to $265 and added the stock to its focus list. The analysts see potential appreciation ahead of a shareholder vote on the Norfolk Southern merger. This positive outlook underscores the potential benefits of consolidation within the railroad industry, driven by improved efficiency and expanded network reach. Investors are closely monitoring regulatory developments and the outcome of the shareholder vote as key catalysts for the stock.

10. Layoffs Signal Restructuring: Both Target and Applied Materials announced significant workforce reductions. Target is eliminating 1,800 corporate jobs (approximately 8%) as it prepares for a new CEO, signaling a strategic realignment ahead. Applied Materials is cutting over 1,400 jobs (4% of its workforce) due to automation, digitalization, and geographic shifts. These layoff announcements reflect a broader trend among companies to streamline operations, reduce costs, and adapt to evolving technological landscapes.