CNBC’s Jim Cramer said Friday that the start of earnings season next week will give investors a clearer picture of company performance and the strength of the artificial intelligence industry.
“No more guessing,” the “Mad Money” host said. “We’re going into a big earnings season, so we don’t need to obsess over every little data point to decide where to put our money.”
Stocks rose on Friday led by the tech sector as traders recovered from a volatile week marked by rising U.S. Treasury yields, oil prices and declines in AI stocks. With that in mind, Cramer turned his attention to next week, when big banks begin earnings season, along with key semiconductor reports and inflation data.
Earnings will be brought in on Tuesday. goldman sachs, wells fargo, JP Morgan Chase and citygroup. Kramer said the recent weakness in bank stocks could set the stage for a rally if earnings beat expectations.
He remains bullish on Goldman Sachs and Wells Fargo, which are held by charitable trusts. Goldman’s bond issuance and trading strength could offset delays in closing deals, while Wells Fargo’s attractive valuation and potential for improved metrics make it particularly attractive.
Mr. Cramer took a more cautious stance on JPMorgan, saying he expects near-perfect execution and wants to see if Citigroup recovers.
club held johnson & johnson It was also reported on Tuesday. Kramer said that despite strong underlying performance, stocks are often sold off during earnings releases, creating a potential buying opportunity. “With 18 potential blockbuster drugs in the pipeline and one of the best franchises in cardiology and oncology, J&J will need to be acquired if it fails,” he said.
Consumer price index data will be released Wednesday morning, but Cramer is looking for signs that inflation is easing beyond energy.
Semiconductor manufacturing equipment manufacturer ASML is also reported. “If ASML raises its guidance and talks about solid demand, we need to do some buying and be prepared to pick up some.” ram research or applied materialstwo of my favorite semiconductor capital equipment stocks. ”
bank of america, morgan stanley and black rock Summarizing Wednesday’s financial results. Mr. Kramer is particularly fond of Morgan Stanley’s growing wealth management business, which has become a key growth driver beyond investment banking.
Thursday could be biggest day for semiconductor stocks, chipmakers say taiwan semiconductor manufacturing Reporting of earnings. “If it’s strong, we could have a very large rally,” Kramer said.
Producer price index and retail sales data, also released Thursday, will provide new clues on inflation and consumer spending.
Securities company charles schwab It will release the report and hold an analyst meeting on Thursday. Kramer said the incident could highlight the growing influence of retail investors in the market.
Despite the busy earnings schedule, Kramer cautioned that rising bond yields remain a major risk.
“We have profits, we have to worry about oil, and we have to start accepting the need for capital from both the Treasury and private companies, primarily to invest in data centers, by holding long-term bonds at 6%,” Cramer said. “When it comes to bonds, there’s too much supply and not enough demand at the moment. That colors everything. We need to respect how difficult the market can be when interest rates are rising relentlessly.”
