CNBC’s Jim Cramer said Friday that stock investors need to remember that the bond market is in the driver’s seat at the moment, and that move looms large heading into next week’s important earnings report.
“The anger in the bond market can wreak havoc on even the strongest stock market,” the “Mad Money” host said.
On Friday, U.S. Treasury yields soared as oil prices soared after President Donald Trump told Fox News he was “not going to be any more patient” with Iran, adding: “We should get a deal.” Cramer noted that concerns about inflation are also dampening expectations for a rate cut by the Federal Reserve.
“For stocks to continue to rise, we need bond markets to moderate, which means we need oil prices to fall, and that won’t happen unless we end the war,” he said.
Cramer said triple-digit oil prices, the benchmark 10-year Treasury yield at a one-year high, and signs of over-speculation in recent IPOs warrant a more cautious stance on stocks.
“You know, I wasn’t bearish. I’ve never been bearish. But smart bulls have to recognize when the facts change, and I’m very concerned that we’re headed for a flood of reckless IPOs that always lead to heartbreak,” Cramer said. “We are not there yet, but we need to be wary of that possibility and protect our interests.”
With that, Kramer looked ahead to the week ahead.
Monday
head of caterpillar’s Power and energy businesses benefiting from the data center construction boom are meeting with Wall Street. While Cramer said he loves the company, he cautioned that the stock’s valuation appears overheated after the significant price drop. “It’s like a tech stock,” he said.
Tuesday
home depot Holdings in Cramer’s Charitable Trust, a portfolio used by CNBC Investment Club, reported after struggling under the weight of rising interest rates. Kramer said he wasn’t expecting much, but said a “not bad” result could spark a rally of relief.
Vertive HoldingsKramer said the data center infrastructure giant could achieve huge results, but expectations are already high after the stock’s massive rally.
After closing, Mr. Kramer named him his “favorite home builder.” toll brothers I will report. Kramer said it’s a good time for Toll, which focuses on luxury homes, but rising mortgage rates are making it difficult to own homebuilding stocks.
Wednesday
Mr. Kramer is hopeful. lowe’sreported in the morning that it could outperform Home Depot given its greater exposure to do-it-yourself consumers in a depressed housing market.
The spotlight shines after the bell Nvidia.
“If the data center is the most important part of this economy…Nvidia is at the heart of the data center,” Cramer said.
He reiterated his long-held view that investors should own stocks, not trade them. Cramer’s Charitable Trust has owned NVIDIA since 2019. Still, after that massive stock price rally, Cramer said NVIDIA will likely need a “perfect quarter” for it to rise meaningfully. He said he thinks that might be possible.
Thursday
walmart According to the report, Mr. Kramer remains bullish. “I remain convinced that Walmart is one of the greatest companies of our time,” he said, praising its broad appeal and value proposition.
software company working day It has also been reported that investors are debating whether artificial intelligence will disrupt traditional Software-as-a-Service businesses. Cramer said he doesn’t expect weak results, but cautioned that investors remain skeptical about the software’s name.
Friday
BJ’s Wholesale Club I will report. Kramer said the small retailer may have an opportunity to catch up; costco remains a longtime favorite of his. Costco is also a holding in a charitable trust.
