Jim Cramer's Top 10 Things to Watch in the Stock Market Friday

Why It Matters

These signals reveal shifting sector momentum and investor sentiment ahead of earnings season, guiding portfolio allocation decisions. Understanding these drivers helps investors navigate volatility and capitalize on emerging opportunities.

Key Takeaways

• Blue Owl loan sales signal private‑credit stress
• Futures dip after 1.4% Q4 GDP miss
• Texas Roadhouse rebounds on strong Q1 outlook
• GE Aerospace gets 27% upside target, air travel rally
• Klarna’s loss deepens BNPL sector challenges

Pulse Analysis

The market opened cautiously after the U.S. government’s fourth‑quarter GDP estimate disappointed, registering just 1.4% annualized growth. The weaker output, coupled with a modest rise in the PCE inflation gauge, nudged futures lower and underscored lingering concerns about a potential fiscal shutdown. Investors are now weighing the impact of slower economic momentum on cyclical stocks while monitoring policy signals from the Federal Reserve for any shift in monetary stance.

Sector‑specific themes emerged strongly in Cramer’s roundup. Defensive consumer staples like Texas Roadhouse showed resilience, with shares climbing as the restaurant chain’s first‑quarter sales surged, suggesting that beef‑inflation pressures remain manageable. Meanwhile, aerospace giant GE Aerospace earned a buy rating and a 27% upside target, reflecting renewed confidence in the post‑pandemic travel rebound. In contrast, the buy‑now‑pay‑later space faced headwinds as Klarna posted a sizable loss, prompting analysts to slash its valuation and pivot toward rivals such as Affirm.

For investors, the takeaway is a mixed‑bag environment where selective stock‑picks can offset broader macro uncertainty. High‑growth tech names like CrowdStrike saw price‑target reductions, yet the broader narrative frames the pullback as a buying opportunity for disciplined investors. Meanwhile, dividend‑rich names such as Costco received modest target upgrades amid potential tariff rulings, highlighting the importance of regulatory developments. Balancing exposure across resilient consumer brands, aerospace leaders, and cautiously priced tech stocks may position portfolios to capture upside while mitigating downside risk.

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

Published Fri, Feb 20 2026 8:58 AM EST · By Jim Cramer · ### My top 10 things to watch Friday, Feb 20

1. Blue Owl Capital’s loan sales – Part of a plan to return capital to investors, the activity is prompting “canary in the coal mine” warnings. While many private‑credit loans seem mismarked, this situation does not appear tragic.

2. Stock futures – Futures were lower after the initial look at fourth‑quarter U.S. GDP came in much weaker than expected at 1.4%. The government shutdown likely dragged growth. The PCE, the Fed’s preferred inflation gauge, was up 0.4% in December, slightly above consensus.

3. Texas Roadhouse (TXRH) – Shares rose over 3% this morning. The market gave the steakhouse chain a pass for a weak fourth quarter because its Q1 is off to an explosive start. There is no sign the cattle‑bull market will end, so beef‑inflation pressure remains.

4. CrowdStrike (CRWD) – Barclays cut its price target to $550 from $610, citing continued pain in software‑related stocks, but kept its buy rating. The cyber‑pullback is being framed as an opportunity for Club members.

5. GE Aerospace (GE) – Morgan Stanley initiated the stock with a buy rating and a price target of $425, implying about 27% upside from yesterday’s close. Analysts note the engine maker’s cash flow is “at full throttle.” The air‑travel bull market is one of the strongest stories; Boeing is suggested as a related play.

6. Pfizer (PFE) – Started with a sell rating at Barclays as analysts expect the stock to be range‑bound until more data on its obesity pipeline emerges. Barclays placed buy ratings on Club names Bristol‑Myers Squibb, Eli Lilly, and also likes Merck.

7. Costco (COST) – Citi raised its price target to $1,000 from $990, barely above the prior close. The timing is notable because a long‑awaited Supreme Court ruling on tariffs could arrive soon; Costco has sued the Trump administration over the tariffs, seeking refunds.

8. Molson Coors (TAP) – Barclays lowered the price target to $47 from $49 and reiterated a sell rating after earnings. Analysts said the Miller Lite parent’s softer‑than‑expected 2026 guidance could be “setting too high a starting point.” The recommendation aligns with a broader view to stay away from alcohol stocks.

9. Live Nation (LYV) – Shares jumped 3.5% after the Ticketmaster parent beat quarterly revenue estimates, supported by resilient demand for concerts and live experiences. Early 2026 ticket sales are up double‑digits, and more than 80% of large‑venue shows have already been booked, indicating consumers remain willing to spend on travel and entertainment.

10. Klarna – Delivered a disastrous quarter, reporting a wider‑than‑expected net loss and a fiscal‑2026 outlook that fell short on many key metrics. JPMorgan cut its price target to $20 from $40, calling the report “disappointing,” and UBS lowered its target to $20 from $46. Affirm remains the preferred way to play the buy‑now‑pay‑later space.

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