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

1. Stocks are set to begin the week higher ahead of key inflation releases on Tuesday and Wednesday. The data will offer a test for the quiet market rally we’re enjoying. The Dow, which on Friday wrapped up its best week of the year, is riding an eight-session win streak. The S&P is up more than 5% since April 19 and sits less than 1% from its late March all-time high.

2. In my Sunday column, I explored the lessons from the recent batch of restaurant earnings. My conclusion: The stocks that are doing the best in this market, such as Chipotle and the parent company of Chili’s, have one thing in common.

3. Barclays strikes an upbeat tone on memory chipmaker Micron Technology, upping its price target to $145 a share from $120. That implies nearly 20% upside. Analysts argue Micron will benefit from “structural changes” in the memory market tied to artificial intelligence computing, enabling the stock to “move beyond the upper bounds of the historical range.”

4. Another chip note: Jefferies resumes coverage of the group and names longtime Club holding Nvidia as its favorite way to play AI. The firm sees Nvidia taking an increasing slice of the spending pie and expects a strong ramp for its latest chip Blackwell later this year. Shares of Nvidia haven’t done much since early March, but I maintain my “own it, don’t trade it” mantra on the stock. It reports next week.

5. My other “don’t trade it” stock, Apple, is nearing an agreement with ChatGPT creator OpenAI to use the startup’s technology in the iPhone’s next operating system, Bloomberg News reported over the weekend. I’ve urged investors to stay patient with Apple this year, believing new AI features for the iPhone can spark a major upgrade cycle. Big developer event next month where we expect to hear more on the strategy. I believe Apple’s AI features will be better than Samsung’s tools.

6. Mizuho Securities raises its price target on Coterra Energy to $41 a share from $37, which implies 46% upside from where the Club stock closed Friday. The firm, which has been bullish on Coterra for some time, keeps its buy rating. We like the company’s mix of oil and natural gas assets, shifting its production focus based on what makes the most economic sense. Coterra is up 10% year to date.

7. Odd note from Barclays: Price target on Dick’s Sporting Goods is lowered to $231 a share from $239, but analysts offer a positive review of the retailer’s “House of Sport” store concept in Boston. Earnings season for the retailers picks up pace this week, with Home Depot and Walmart scheduled to report. We’re set to hear from Dick’s on May 29.

8. UBS expects Best Buy to report in-line first quarter results May 30. In a note titled, “Is This Just E-Cycling the Same Story,” analysts say a top-line recovery for Best Buy is still several quarters away. We’ve been building a Best Buy position for the Club on the expectation of an AI-driven recovery in consumer electronics sales.

9. Piper Sandler starts coverage of Visa and Mastercard with buy-equivalent ratings, arguing both companies are attractive business to own for their scales and hard-to-replicate networks. Analysts also see a role for generative AI to play in boosting margins.

10. Here we go again: Shares of meme-stock darling GameStop surge nearly 40% in premarket after a post on X from “Roaring Kitty,” whose online commentary inspired the stock’s dramatic short squeeze in 2021. The post is Roaring Kitty’s first on the platform or on Reddit since 2021.

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