Cramer's Monday Watch: Treasury Yield Hits 5.234%, Oil Jumps, Nvidia Adds Buyback

Bond yields and oil were the main backdrop. Brent and WTI crude were both up more than 3% in the morning, Cramer said. He said both pathways for Middle East oil exports now appear partially shut with no sign of change, and that stasis means higher yields. The yield move, he added, creates a tough backdrop for stocks to catch a bid.

A heavy economic data week lies ahead. Cramer said the Fed's preferred inflation gauge is due Wednesday, and the September jobs report is scheduled for Friday morning. Micron, a club name, reports Wednesday night. In his Sunday column for club members, Cramer pushed back on the view that everyday investors should simply stick to index funds, arguing there is value in picking individual stocks if investors find the right ones.

Nvidia added $150 billion to its buyback authorization, bringing the total program to $235 billion, according to Cramer. He called it the biggest buyback increase in history and said he had been urging the club name for months to be more aggressive to counteract the stock's lackluster performance. Cramer said he was glad the company listened and questioned how actively Nvidia would deploy the authorization. Nvidia also released a new software platform to protect AI agents from misbehaving, he said.

PepsiCo was downgraded to hold from buy at Deutsche Bank, with its price target cut to $138 from $155, implying about 7% upside, Cramer said. He said analysts have waning confidence in Pepsi's North America turnaround. The stock has a below-market multiple, but Cramer questioned whether that is enough if the strategy is flawed and the recovery takes longer. PepsiCo shares are down 10% year to date.

Royal Caribbean received a pair of upgrades. Bank of America and Deutsche Bank both moved to buy from hold, Cramer said. Deutsche Bank sees a good entry point for a high-quality stock after a 26% pullback since Aug. 5. The cruise sector has been crushed over that period, weighed down by high oil prices. Cramer said Viking Holdings has been his preferred way to play the space because of its differentiated strategy.

Capital One drew a mixed signal from Piper Sandler, which raised its price target to $260 from $254 while saying it is cautious into earnings, according to Cramer. Piper kept its buy rating. Cramer called the move odd and said the stock is tough to own in a prolonged Fed rate tightening cycle because it is heavily tied to the consumer. He noted he owns three other financials and said the sector should not be painted with the same brush.

Apple faces an onerous $5.7 billion verdict after a federal jury in San Diego ruled against the company, saying it infringed Taction Technology patents in the haptics of the Apple Watch, Cramer said. Apple said it does not use Taction technology and plans to appeal. Cramer said it is hard to believe the ruling will stand up. Haptics are the responsive vibrations in devices that give the feel of touch.

Piper Sandler cut its Nike price target to $38 from $45 and kept its hold rating, Cramer said. The analyst tweaked estimates ahead of Thursday evening earnings and cited the same risks: a tough athletic shoe market, China challenges and gross margin pressure. Cramer said the turnaround is taking longer than expected, which is why he moved away from the position this summer.

BTIG raised its price target on Palo Alto Networks to $425 from $404 and maintained its buy rating, Cramer said. The analysts came away from a meeting with the company optimistic about the integrations of systems watchdog Chronosphere and identity platform CyberArk, rebranded Idira. Cramer said cybersecurity is more important than ever. He also owns CrowdStrike, and said both companies are part of Nvidia's new agent safety program.