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

US stocks are expected to open lower following reports of Israeli strikes in Iran, which have driven up oil prices with Brent and WTI crude futures both rising over 8%. Several firms initiated or upgraded ratings on individual companies, including Raymond James initiating American Electric with an outperform rating, RBC upgrading Oracle to outperform citing confidence in double-digit operating income growth, and Wells Fargo raising its price target on Microsoft expecting a strong second half for the software sector. Apple's iPhone claimed the top spot in China for May smartphone sales, contributing to a 15% year-over-year growth in global sales for April and May, while Walmart and Amazon are reportedly considering issuing their own stablecoins in the U.S.

Analysis

Geopolitical tensions, highlighted by Israeli strikes in Iran, are setting a cautious tone for U.S. equities with an expected lower open, while simultaneously causing a significant surge in commodity prices, as evidenced by Brent and West Texas Intermediate crude futures jumping over 8% and rising gold prices. Amidst this macro environment, several companies are subject to notable analyst re-ratings: American Electric Power (AEP) was initiated as "outperform" by Raymond James with a $115 price target, citing potential under new leadership, and Linde (LIN) received an "outperform" initiation from RBC Capital with a $576 target due to its sticky customer base and strong earnings outlook. Conversely, GE Vernova (GEV) faced a downgrade to "hold-equivalent" by Wolfe Research based on valuation, despite its compelling exposure to electrification and AI. In the technology sector, Microsoft (MSFT) saw its price target raised to $565 by Wells Fargo on expectations of a software sector rebound, and Oracle (ORCL) was upgraded by RBC to "outperform" with a $235 target following strong earnings and projected double-digit operating income growth. Apple (AAPL) presents a mixed outlook; while its iPhone secured top sales in China for May and global sales grew 15% year-over-year in April-May, a reported delay in its AI-enhanced Siri to spring 2026 and a lackluster developers conference temper enthusiasm. Energy firm Coterra Energy (CTRA) also benefited from rising oil, with Raymond James increasing its price target to $38, although the rally's sustainability is tied to ongoing geopolitical stability. Finally, Walmart (WMT) and Amazon (AMZN) are reportedly exploring proprietary stablecoins, a move aimed at reducing transaction fees.

Key Decisions for Investors

• Investors should closely monitor the evolving geopolitical situation due to its direct impact on oil prices and overall market sentiment, and consider that while energy stocks like Coterra Energy (CTRA) may see near-term gains, these are highly dependent on continued tensions.
• Focus on companies with positive analyst revisions backed by strong fundamentals, such as American Electric Power (AEP), Linde (LIN), Microsoft (MSFT), and Oracle (ORCL), while exercising caution with GE Vernova (GEV) where valuation appears to be a headwind despite its strategic market position.
• For Apple (AAPL), weigh the positive current sales momentum, particularly in China and globally, against concerns over the timeline and execution of its crucial AI product enhancements like the Siri upgrade.
• Consider the long-term implications of Walmart (WMT) and Amazon (AMZN) potentially entering the stablecoin market, which could disrupt traditional payment systems and improve their cost structures.