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

President Trump's suggestion of a 25% tariff on iPhones made outside the U.S. and a 50% tariff on EU goods triggered concerns, particularly regarding Apple, while Wall Street anticipates a lower open. Ross Stores shares declined 13% after withdrawing full-year guidance due to macroeconomic uncertainty, contrasting with TJX Companies' maintained outlook; similarly, Deckers Outdoor plunged despite earnings beat due to lack of full-year guidance. Conversely, Intuit shares jumped nearly 7% following strong quarterly results, and Barclays raised its price target on Ralph Lauren, while Wedbush boosted Tesla's target, seeing a turnaround.

Analysis

The market is poised for a sharply lower open driven by President Trump's statements regarding a potential 25% tariff on iPhones not made in the U.S. and a 50% tariff on European Union goods, citing stalled trade talks with the EU. This directly impacts Apple, which predominantly manufactures iPhones in China and is now facing increased cost pressures, although it has raised iPhone trade-in prices in China to stimulate demand against local competitors like Huawei. In the retail sector, divergent outlooks are evident: Ross Stores' shares declined 13% after withdrawing its full-year guidance due to macroeconomic uncertainty and a stressed consumer, despite exceeding Q1 earnings and revenue estimates. In contrast, competitor TJX Companies maintained its full-year outlook following a respectable Q1. Deckers Outdoor experienced a more significant share drop of over 19%, also withdrawing full-year guidance and issuing current-quarter guidance below estimates, which overshadowed its quarterly earnings and revenue beat. On a positive note, Intuit's shares rose nearly 7% on strong quarterly earnings and revenue, with its Credit Karma business showing particularly robust performance. Analyst sentiment is varied: Barclays increased Ralph Lauren's price target to $321, though the stock fell 2.5%; Wedbush raised Tesla's target to $500, citing renewed commitment from Elon Musk. Conversely, Citi reduced Salesforce's price target to $310 due to concerns about slowing business and heightened competition from ServiceNow. Cybersecurity firms Okta and Zscaler continue to benefit from strong demand and favorable analyst views.

Key Decisions for Investors

• Investors should closely monitor developments regarding U.S. tariff policies, particularly their potential impact on Apple's international manufacturing and the broader market sentiment.
• Evaluate retail sector investments by contrasting companies that withdraw guidance due to uncertainty, like Ross Stores and Deckers Outdoor, with those such as TJX Companies that maintain visibility and a stable outlook.
• Acknowledge the positive momentum in companies like Intuit, driven by strong earnings, and Tesla, buoyed by optimistic analyst outlooks, while exercising caution with Salesforce given concerns over slowing growth and intensifying competitive pressures from firms like ServiceNow.
• Note the sustained strong demand and positive analyst sentiment for cybersecurity firms such as Okta and Zscaler, indicating potential resilience and growth in this sub-sector amidst broader market uncertainties.