Earnings from Eli Lilly, Alphabet and Amazon. Plus, jobs data
CNBC’s Jim Cramer said Friday that the stock market will be well positioned for a recovery next week if heavyweight companies report strong earnings numbers.
After the S&P 500 finished three straight days in the red, the “Mad Money” host said it was because the market ended the week on a weak note.
The busy week wastes no time getting started; Disney Reporting on Monday and On-air conversation about CEO succession. Cramer’s Charitable Trust, the portfolio used by CNBC Investment Club, threw in the towel on its Disney position in November after a long stretch of stagnant performance. “There was always a divide holding it back. I don’t know which one this time. You never know,” Cramer said.
On Tuesday, we’ll have the latest from people including: Pfizer, Pepsi, Merck, Advanced Micro DevicesAnd chipotle. While investors will look to AMD for information on the AI boom, Cramer said it’s possible for even stellar numbers to be met with selling. This appears to have become the “new model” for chip stocks, he said.
Also on Tuesday Western Digital The company is hosting the so-called innovation day, where it plans to highlight innovations aimed at supporting the growing demand for data storage. Cramer said the upcoming event was “critical” after the company’s shares fell on Friday despite recording a great quarter the previous evening. “We have to find out what this is about,” he said.
Eli Lilly He reported Wednesday morning, and Cramer said he would be watching to see whether the obesity drug maker shares new trial results for its GLP-1 portfolio; This is something that could be more meaningful to stock movements than quarterly results. Lilly shares are down about 3.5% year to date.
AlphabetIt will be among the most important reports for the market, which will report on Wednesday night.
“This is a company that many consider the least of the ‘Magnificent Seven,'” Cramer said, but the story is completely reversed. “Whether it’s Gemini, the best of chatbots, YouTube, the world’s most popular video site, Waymo, or Google itself. Alphabet is the best, and I think it can cause a stir when it reports.”
The other technology giant that will report next week is as follows: AmazonIt will announce its figures after the close on Thursday. Amazon has become a controversial stock, Cramer said. When the stock finally gained momentum, Cramer said sellers emerged and eroded gains. “The greatness of the company got lost in the shuffle,” Cramer said, acknowledging the stock’s recent lackluster returns. “I am a believer.”
The January employment report, which wraps up the week on Friday, could come in weaker than expected in terms of both job gains and wage inflation, Cramer said. That could help support bond yields falling while allowing stocks to rise, he said. “I think that’s a distinct possibility.”
Disclosure: Cramer’s Charitable Trust has positions in LLY, AMZN and GOOGL.
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