Jim Cramer says JPMorgan stock will rebound

CNBC’s Jim Cramer looked back at the market as earnings season begins and suggested: JP Morgan Chase There is a possibility that the stock price will recover after Tuesday’s report sent it plummeting.

“Jamie once again urged caution and got tough on his right to charge high fees on credit cards to make up for his losses. That combination created a tsunami of selling,” Cramer said. “We saw the same thing last time. Just like last time, we’re saying you can wait a day or two and buy gradually on weakness. Why? Because it always rebounds.”

JPMorgan beat expectations for profit and sales, but the stock fell 4.19% by the close.

In line with Dimon’s cautious tone, Kramer suggested investors were hesitant because the bank was disappointed with its underwriting revenue. JPMorgan’s investment banking fees fell 5% to $2.3 billion, about $210 million less than Street accounts expected.

But Mr. Kramer said Mr. Dimon is typically cautious at earnings time. Cramer noted that despite the stock’s decline last quarter after its CEO warned of problems in the private credit market, it was able to rebound quickly.

Cramer also highlighted the performance of other sectors during the session, calling the rise in retail trade the “most attractive development” after months of trouble for the group. He named retail stocks that rose during the day’s trading. walmart, target, home depot, lowe’s, wayfair and ralph lauren. Mr. Cramer attributed the move in part to new evidence that inflation is under control, and said buyers favor companies that benefit from lower interest rates.

Investors on Tuesday worried that artificial intelligence would make the product obsolete and appeared to be unhappy with the name of the enterprise software, Cramer continued. meanwhile sales force, adobe and ServiceNow Loss endured, AI powerhouse intel and AMD Momentum has built up, he said.

“But like I said at the beginning of the year, the first two weeks are always a jumble of love and hate, and too much of both,” he said. “But the bottom line? Now that earnings season has begun, rehearsals are over and we’ll start to see the response to the actual numbers. And if it’s something like JPMorgan, what can we say? It’s showtime.”

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Disclaimer CNBC Investing Club owns stock in Home Depot and Salesforce.