CNBC’s Jim Cramer said Friday that the market can get “very ugly” at times, and investors have no choice but to look at it as an opportunity.
Futures looked dire early on Friday, he said, but stocks didn’t follow suit. This is a sign that while many companies are struggling, stocks strong enough and solvent enough to create potential bargains have been “killed,” he said. The question now is what happens next week, he said.
For Kramer, the answer is clear. It all depends on: Nvidia And CEO Jensen Huang reported the company’s earnings on Wednesday night.
“If Nvidia is strong, I think it can cause a real rally rather than a pullback,” Cramer said. “I cannot stress enough how important Nvidia is to this market, because without Nvidia there would be no AI revolution.”
Cramer said he believes the Fed’s message next week will be the only real challenge to Nvidia’s market importance because it could change the macro environment. New York Fed President John Williams will speak next week, and Cramer said bulls need to show him either a peak in inflation or softening in labor data to justify future rate cuts. Cramer said he thinks the somewhat dovish tone could encourage investors to reinvest cautiously as the December Fed meeting approaches.
“The next phase of this market depends on the Fed and some very important quarters,” Cramer said.
Next week’s earnings start on Tuesday with Home Depot, which was downgraded by Stifel on Friday, citing expected delays in housing delivery and traffic impacts from ICE enforcement. More retailers will appear on Wednesday and Thursday. Kramer will be watching to see if TJX repeats its strong quarter, Target addresses its price gap with Walmart, and Lowe’s maintains its momentum.
But Kramer said it all depends on Nvidia’s coverage Wednesday night.
Kramer said that beyond key numbers like revenue and outlook, investors need to hear that Nvidia’s next-generation Vera Rubin chips are ready and that the company remains firmly ahead of AMD. Although he doesn’t expect anything meaningful from the company’s China operations, he said Nvidia remains at the heart of the AI revolution and the driving force behind the data center boom.
“We’ve got good numbers for NVIDIA, we’ve got a big boost from the predictions, and the next thing you know, the other six members of Mag Seven will be making noise,” he said.
