CNBC’s Jim Cramer said Friday that investors shouldn’t read too much into the uneventful unemployment numbers, arguing that the lack of surprises on the labor front is actually giving the market room to reveal the truth, and that the broad rally extends far beyond last year’s winners.
“Having a basically clean employment report allows us to focus on what’s actually going on in the market,” Kramer said.
In his view, money is actively flowing into overlooked corners of the market, with data storage stocks being the biggest beneficiaries. Even as some of the market’s former leaders struggle to gain traction, companies related to this theme have seen what he calls a breathtaking rise.
For that, apple and Nvidiatwo stocks that failed to rise despite strong fundamental businesses. Kramer dismissed the idea that either name is done being traded. Instead, he said, both companies are still doing well, but they are a source of capital for investors to sell winners to buy new opportunities.
Looking ahead, Kramer said there will be a number of triggers next week, starting with the JPMorgan Healthcare Conference, where he plans to meet with more than a dozen pharmaceutical executives. Historically, this event has been a hotbed for deal making, and investors should expect a flurry of merger and acquisition news, Cramer said.
On the economic front, Tuesday’s December consumer price index will be far more important than the latest labor data. Cramer said strong signs of front-loading holiday spending suggest inflation may remain sluggish, creating tension between a president bent on price control and consumers who bear the brunt of inflation.
Earnings season also begins on Tuesday JP Morgan Chase. Mr. Cramer said he expected a great quarter, but cautioned that CEO Jamie Dimon is known for emphasizing risks on conference calls, and that tone has caused the stock to fall before. His strategy is to wait for cautious comments and then buy on weakness.
Kramer expects strong results later this week. delta airlinesand believes banks are the early protagonists of earnings season. he emphasized citygroup While reaffirming my confidence as a potential outstanding person, wells fargo, bank of america, goldman sachs and morgan stanley.
Kramer also said black rock Expectations may already be high, but there’s a chance they’ll post strong numbers.
On the technical side, he pays attention Taiwan semiconductor manufacturing companythat report could ultimately force the seller out of Nvidia. Meanwhile, money continues to flow into warehouses and capital investments, he said. western digital, sandisk, micron, seagate and applied materials.
Kramer also warned against transportation stocks, saying: JB Hunt would strengthen his bullish stance on fedex. By Friday, PNC Cramer closed out the bank’s earnings, saying investors need a clearer picture of the tone for the rest of the season.
