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

My top 10 things to watch Monday, Oct. 27

1. Wall Street was in rally mode this morning on the potential for a U.S.-China trade truce. A higher open would extend last week’s S&P 500 surge and record high Friday. In the week ahead, tons of earnings, including much of the “Magnificent Seven” stocks. Ten Club stocks in total.

2. The presumed winners of a China deal are semiconductor exporters, Nvidia and Advanced Micro Devices, which were both up more than 2%. Farmers, too, that’s why Deere was up this morning. U.S.-listed rare earth miners like MP Materials were lower on the expectation that China would hold off on export curbs.

3. Analyst Ben Reitzes at Melius Research said the custom Tensor Processing Unit (TPU) from Google is great for Club name Broadcom. He raised his Broadcom price target to $475 from $415, and Google-parent Alphabet, too.

4. JPMorgan raised its Alphabet price target to $300 from $260 on the Justice Department overhang being lifted. The analysts said the stock can go meaningfully higher. Bad miss by the Club to believe the DOJ antitrust issues would do something.

5. UBS raised its Arm price target to $200 from $175, predicting handset and client central processing units (CPUs) and server CPUs all strong ahead of Nov. 5 quarterly earnings.

6. Microsoft was upgraded to buy from hold at Guggenheim. The analysts said Microsoft has a “near monopoly” in the productivity suite market with Office, and it’s also a beneficiary, along with other hyperscalers, of AI “casualties.” The Club name reports earnings Wednesday evening.

7. While the real part of the market was up, so were the quantum stocks like IONQ and nuclear stocks like Oklo. In my Sunday column, I looked at the difference between investing, which is what we do for the Club, and 1990s-like speculation, which I want no part of.

8. Susquehanna raised its price target on General Dynamics to $406 from $365, citing very strong business aviation market following Q3 results. The defense business is strong, too.

9. RBC Capital Markets upgraded Club name Honeywell to a buy rating from hold, saying business momentum is picking up and spin-off “purgatory” perceptions are fading. The analysts’ new price target of $253 implies about 19% upside. I’m a big supporter of Honeywell’s plans to separate its crown jewel aerospace division, which will happen next year. On Thursday, the Solstice Advanced Materials spin happens.

10. Wells Fargo raised its price target on Club name TJX to $140 from $130 and raised estimates. TJX, the off-price retailer behind T.J. Maxx, Marshalls, and HomeGoods, reports earnings Nov. 19. The Wells Fargo analysts adjusted PTs on rivals: boosting Ross Stores but cutting Burlington.

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