Key economic reports, earnings from Levi’s, Delta
CNBC’s Jim Cramer on Thursday outlined what investors should watch next week, including developments in the Middle East, major earnings releases and key economic data.
The “Crazy Money” host’s weekly game plan follows a volatile session on Wall Street. Stocks rose Thursday on media reports that Iran was working with Oman to draft a protocol to “monitor” Strait of Hormuz traffic; This is a big reversal from earlier losses seen following President Trump’s escalatory rhetoric late Wednesday.
“In a world where investors want the war to end quickly, it was surprising to see any rally before the weekend,” Cramer said. “The fog of war seems foggier than ever, but this session ended on a slightly clearer and more positive note than we thought possible after the president’s bellicose speech last night.”
Cramer’s remarks come after a week full of gains for the stock market. S&P 500 And Nasdaq Composite both ended a five-week losing streak. The broad market index rose 3.4% in the holiday-shortened trading week, while the tech-heavy Nasdaq gained 4.4%.
Cramer wants to see if the market can continue to climb higher next week. However, it may be difficult for the war to escalate in the coming days. In fact, Cramer said Monday that investors will be “digesting war damage in Iran and elsewhere this weekend.”
But he argued that with conflicting messages from Trump and Iranian officials, it is almost impossible to predict what will happen next. “We are waiting for a moment when the Iranians no longer have missiles and drones,” Cramer said. “Frankly, Iran looks as strong as it was when the war started. Even if you cut off the snake’s head, it doesn’t mean anything.”
Apart from a solution reached with Iran, Cramer is also keeping a close eye on earnings reports.
on tuesday Levi Strauss It will report quarterly results after closing. Although the clothing company provides big profitsIts shares continue to underperform. “Some companies are struggling for respect,” Cramer said, adding that Wall Street treated Levi “like they weren’t doing anything right, which couldn’t be further from the truth.” The stock is down more than 8% year to date, lagging the S&P 500’s decline of about 4%.
Still, Cramer predicted CEO Michelle Gass would again deliver “more than respectable earnings.” He added: “I wonder if this will matter. Three per cent return is good growth. I don’t understand why someone wouldn’t create a giant clothing line around this.”
Delta Airlines Reports before the opening bell on Wednesday. Cramer said the company “really stands out as one of the most reliable winners” among airlines. He was encouraged by CEO Ed Bastian’s recent words in an interview about continued demand for the business. CNBC. However, Cramer predicts that if the US-Iran war continues until the end of April, it could hurt the company’s numbers.
Cramer said Thursday and Friday brought “two for one” economic data.
On Thursday morning, Wall Street will take the basic personal consumption expenditures (PCE) deflator, which is the price changes that U.S. households pay for goods and services excluding energy and food costs. Cramer said investors should keep an eye on PCE as Federal Reserve chief Jerome Powell’s preferred inflation gauge.
But that could change if Trump’s nominee, Kevin Warsh, steps in when Powell’s term ends in May. The consumer price index, the prices consumers pay for a wide range of products and services, will also be released on Friday.
