CNBC’s Jim Cramer on Thursday outlined what investors should be watching for the week ahead, including developments in the Middle East, major earnings releases and major economic publications.
The “Mad Money” host’s weekly game plan follows a volatile session on Wall Street. Stocks rose on Thursday following media reports that Iran is working with Oman to develop a draft protocol to “monitor” traffic in the Strait of Hormuz. It was a sharp reversal from an earlier decline seen in the wake of President Trump’s escalating comments late Wednesday.
“In a world where investors are hoping for a quick end to the war, it would be surprising to see any gains before the weekend,” Cramer said. “The fog of war seems foggier than ever, except that after the president’s belligerent speech last night, this session ended a little more clear and positive than we expected.”
Mr. Cramer’s comments come after a week of strong stock market gains. of S&P500 and Nasdaq Composite Both ended five-week losing streaks. The composite market index rose 3.4% during the holiday-shortened trading week, while the tech-heavy Nasdaq rose 4.4%.
Kramer wants to see whether the market can continue higher over the next week. But that may become difficult if the war intensifies in the coming days. Indeed, Mr. Cramer said Monday that investors will “weigh the damage from this weekend’s war in Iran and elsewhere.”
But he argued that it is nearly impossible to predict what will happen next, given the contradictory messages coming from President Trump and Iranian authorities. “We continue to predict that there will be a moment when Iran no longer has missiles or drones,” Cramer said. “Frankly, Iran seems to be as strong as when the war started. There doesn’t seem to be any point in cutting off the head of a snake.”
Beyond the Iran settlement, Cramer is keeping a close eye on the financial results.
on tuesday, Levi Strauss The company plans to report quarterly results after the fiscal year ends. The clothing company continues to generate impressive earnings, but the stock continues to underperform. “Some companies … struggle to earn respect,” Kramer said, adding that Wall Street is treating Levi as if he’s “not doing anything right, and that couldn’t be further from the truth.” The company’s stock has fallen more than 8% since the beginning of the year, lagging the S&P 500’s nearly 4% decline.
Still, Mr. Kramer predicted that CEO Michelle Gass would once again post a “reasonable profit.” He added: “I doubt it matters. The yield is 3%, the growth rate is good. I don’t understand why someone wouldn’t build an apparel giant around it.”
delta airlines Report before the opening bell on Wednesday. Kramer said the company has “really emerged as one of the most reliable earners” among airlines. He was encouraged by CEO Ed Bastian’s recent comments in an interview with CNBC about the strong demand for the business. That said, Cramer predicts that if the war between the US and Iran continues until the end of April, it could have a negative impact on the company’s results.
Cramer said a “one-two punch” of economic data will be released on Thursday and Friday.
Wall Street will get access to the core personal consumption expenditures (PCE) deflator, the change in prices that U.S. households pay for goods and services, excluding energy and food costs, on Thursday morning. Cramer said investors should keep track of PCE as Fed Chairman Jerome Powell’s preferred inflation measure.
But that could change if Kevin Warsh, President Trump’s nominee, steps in when Powell’s term ends in May. The Consumer Price Index, which measures the prices consumers pay for a wide range of goods and services, will also be released on Friday.
