- CNBC’s Jim Cramer on Friday urged investors to remain calm as big companies such as Alphabet, Meta, Apple, Microsoft and Amazon report earnings next week.
- He also said that next Friday’s non-farm jobs report will have a significant impact on interest rates, and that a weak job report could prompt the Federal Reserve to continue cutting rates.
- “It’s a huge opportunity. Please, crunch the numbers and listen to the conference call before you pull the trigger, because the first move was the wrong one so many times,” he said.
CNBC’s Jim Cramer on Friday urged investors to remain calm as big companies such as Alphabet, Meta, Apple, Microsoft and Amazon are scheduled to report earnings next week. He also said people shouldn’t forget next Friday’s non-farm jobs report, which could prompt the Federal Reserve to continue cutting interest rates.
“It’s a big opportunity,” he said. “Remember, almost half the time since this earnings season began, the first action has been the wrong action. Before you pull the trigger, crunch the numbers and listen to the conference call. Please wait.”
The week begins Monday with Ford’s earnings. Mr. Kramer said he would like to see the major automakers report a clean quarter, with no warranty cost issues and less significant losses on electric vehicles.
McDonald’s earnings report will be released on Tuesday, and Kramer expects “a full disclosure of the E. coli situation” to determine how much damage it will do to the fast food chain. He said it was too early. The Centers for Disease Control and Prevention announced Friday that a deadly E. coli outbreak linked to McDonald’s Quarter Pounders has infected 75 people in 13 states. Kramer expects Royal Caribbean, Reddit and PayPal to all significantly beat their year-end estimates and announce increases.
Alphabet will report after the close of trading on Tuesday. The tech giant’s stock price has been a hot topic around the world, but Cramer said it’s “rarely going in a positive direction.” He said Alphabet is a great company, but it’s not a solid stock because management doesn’t seem to prioritize what investors want to hear. Kramer said he believes Advanced Micro Devices will do well enough to acquire a portion of Nvidia’s business. Chipotle is scheduled to report its first financial results since former CEO Brian Nicol left the helm of Starbucks, and Cramer believes the announcement of a permanent CEO will help the stock price. said.
Other big reports are scheduled for Wednesday, including from Caterpillar and Eli Lilly. Kramer said he has seen the former machine all over Chevron’s floating platforms in the Gulf of Mexico, but he doesn’t know if the expected positive press will be enough to move the already hot stock. The latter is doing well thanks to GLP-1 weight loss drugs, and Kramer said Stifel’s report on the negative impact of weight loss drugs on food stocks means Eli Lilly stock could benefit. Afterbell coverage will be dominated by Meta and Microsoft. While Cramer said he believes Meta can continue its impressive quarterly results, he is less confident that Microsoft will be able to convince investors that its AI tool CoPilot is equally strong. It is said that there is no. As advertised. Kramer said two more companies, Booking Holding and DoorDash, are likely to have strong quarters, which will shed more light on consumers ahead of the nonfarm jobs report.
A monster week for earnings will continue into Thursday, as both Apple and Amazon release reports after the bell. Even after the lackluster iPhone 16 launch, Kramer said: ”we have seen this movie before” The best strategy is to continue negotiating with the company. He once again cautioned against panic, saying Amazon is doing well and doesn’t need to follow the potential hit to its stock last quarter. Kramer believes Merck and Bristol-Myers are two pharmaceutical stocks that are too cheap, but he doesn’t think investors should buy them if Friday’s jobs report is weak. said.
“I can’t stress enough how important these numbers are,” said Kramer, who will release the non-farm payrolls report on Friday.. ” He said continued strong employment growth means there will be no rate cut in November, and while some investors may want to sell, the Fed’s rate-cutting cycle is a time to buy. Oil giants Chevron and Exxon are also scheduled to report on the same day. Kramer said he was impressed on the trip by how Chevron is still the worst-performing company in the group, yet is returning significant capital through dividends and stock buybacks. He also suggested that people should switch sides, saying Exxon is more beloved than Chevron due to the dispute over the Hess deal, even though Exxon doesn’t have as much earning power.
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