The top 10 things to watch in the stock market Friday

1. Stock futures were flat Friday after the second inflation report of the week — the producer price index — came in hotter than expected. The PPI rose 0.3% for January, above the 0.1% expected by economists. On Tuesday, the consumer price index also rose more than anticipated. Jim Cramer has been saying for a while now that the economy remains too strong for a rate cut anytime soon.

2. Morgan Stanley raised its price target on Eli Lilly shares to $950 from $805 — a new high Wall Street estimate. The firm speculates that the maker of diabetes and obesity treatments, led by Mounjaro and Zepbound, could be the first $1 trillion biopharma stock. We just raised our price target on LLY shares and three other big winners in the portfolio. Eli Lilly shares hit another all-time high Thursday and are now up 30% year to date.

3. Nike is downgraded to perform from outperform with a price target of $110, down from $150. The firm sees sluggish revenue growth over the next few quarters and no “quick fix” for the sneaker and apparel company. Nike said it is cutting 2% of its current workforce. “This is how we will reignite our growth,” CEO John Donahoe said in a memo obtained by CNBC.

4. Applied Materials stock jumped 12% in the premarket after reporting strong quarterly results and issuing higher-than-expected guidance. The semiconductor production company estimates second-quarter revenue of $6.1 to $6.9 billion, vs. $6.32 billion expected. Bank of America raised its price target to $222 from $185. 

5. Four research firms — JPMorgan, TD Cowen, Baird, and Wells Fargo — raised their price targets on Palo Alto ahead of earnings next week. Of the bunch, JPMorgan is the most cautious, noting that its channel checks have been mixed following disappointing billings performance in recent quarters. The stock has had a huge run — up more than 24% this year and nearly 107% over the past twelve months — so no argument there. But billings isn’t the right way to look at this cybersecurity company anymore, as we saw last quarter. 

6. DraftKings posted a slight miss on EBITDA for the fourth quarter. The sports betting company said it plans to buy lottery app Jackpocket for $750 million in cash and stock. BMO raised its price target to $51 from $43.  

7. UPS upgraded to outperform at Baird on reset expectations and cost savings and productivity opportunities ahead. The firm bumped its PT to $170 from $165.

8. GE Healthcare prices a secondary offering of 13 million shares held by General Electric at a public offering price of $82.25. Not dilutive but the stock is lower due to the discount. GE also files for Vernova spin, which Barclays sees as a positive catalyst for the parent company. 

9. Coinbase reports a surprise profit for the fourth quarter, sending shares up 15%. The crypto brokerage stock earned $1.04 per share, while the Street consensus estimate was a loss of a penny per share. Analysts are still mixed.

10. Nvidia PT raised to $840 from $675 at Wells Fargo. The firm points to Supermicro’s disclosures in a recent corporate filing as a reason to expect data center revenue upside.

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.