Own Apple and Nvidia as broad rally expands before earnings
CNBC’s Jim Cramer said Friday that investors shouldn’t read too much into the uneventful unemployment data, arguing that the lack of surprises on the labor front actually gives the market room to reveal the real story: a broad-based rally that extends well beyond last year’s winners.
“When you get a basically uneventful employment report, it allows you to focus on what’s actually going on in the market,” Cramer said.
According to him, money is aggressively moving towards overlooked corners of the market, and data storage stocks are among the biggest beneficiaries. Companies adhering to this theme have staged what he calls breathtaking rallies as some of the market’s former leaders struggle to gain traction.
This includes Apple And NvidiaTwo stocks that failed to rise despite strong fundamental businesses. Cramer dismissed the idea that a trade for either player was finalized. Instead, he said, both companies are still moving forward but have become sources of funding as investors sell winners to buy new opportunities.
Looking ahead, Cramer said the coming week will be full of catalysts, starting with the JPMorgan Healthcare Conference, where he plans to interview a dozen pharmaceutical executives. Historically, activity has been a venue for deal-making, and Cramer said investors should expect a wave of merger and acquisition headlines.
On the economic front, Tuesday’s December consumer price index will be much more important than the latest labor force data. Cramer said strong signs from holiday spending postponements suggest inflation could remain sticky, creating tension between a president eager to keep prices under control and consumers bearing the brunt of inflation.
Earnings season also starts on Tuesday JPMorgan Chase. Cramer said he expects an excellent quarter but cautioned that CEO Jamie Dimon is known for highlighting risks on conference calls; It’s a tone that has sent the stock lower before. Strategy: Wait for any cautious comments, then buy on weakness.
Later in the week, Cramer expects strong results Delta Airlinesand sees banks as the early stars of earnings season. emphasized citigroup as a potential standout, while reaffirming trust. Wells Fargo, Bank of America, Goldman Sachs And Morgan Stanley.
Cramer also said: Black Rock It may post strong numbers even though expectations are already high.
Watching on the technology side Taiwan Semiconductor Manufacturing Companyreport may finally drive vendors away from Nvidia. Meanwhile, money continues to flow into warehousing and equipment plays, he said. Western Digital, SanDisk, Micron, Seagate And Applied Materials.
Cramer also flagged shipping stocks, calling it a solid report. JB Hunt will strengthen the bullish stance FedEx. until friday PNC Wrapping up bank earnings, Cramer said investors need to have a clearer understanding of the trajectory for the remainder of the season.
