CNBC’s Jim Cramer on Friday told investors what to follow next week as earnings season kicks off, highlighting reports from JPMorgan, Netflix, Goldman Sachs and PepsiCo.
“Once we process the new tariffs, we’ve got a ton of earnings reports coming next week, so you better keep your eyes open,” he said.
Tuesday brings earnings from financial giants JPMorgan, Wells Fargo, Citigroup and BlackRock, and Cramer said he’ll be waiting to hear whether there has been any slowdown in spending or pick up in loan losses. While he said JPMorgan is “the star of the show,” he also cares about Wells Fargo, which is no longer subject to a punitive asset cap. Cramer predicted Citigroup’s report would be well-received, but he said BlackRock might tell “the most exciting story.” The Labor Department will release the consumer price index report on Tuesday, Cramer added, an important metric for the Federal Reserve when it makes decisions about interest rates.
On Wednesday, Goldman Sachs and Morgan Stanley are set to report, and Cramer said he’s optimistic both outfits will post strong quarters as mergers and acquisitions heat up. He said there could be “another round of semi buying” if semiconductor capital equipment company ASML releases a solid report. Bank of America and Johnson & Johnson will report on Wednesday as well. Cramer said Bank of America has put up consistently good earnings and suggested the stock was cheap because Berkshire Hathaway has been selling shares. Cramer said the pharmaceutical giant still has litigation hanging over its head.
Retail sales figures will come out Thursday, and Cramer said he’s worried about a slowdown as political chaos affects consumers. Abbott Laboratories, PepsiCo and Netflix are set to report Thursday. Cramer said Abbott’s quarter tends to be “misinterpreted in a negative way,” saying the healthcare name is one of his favorite companies. Cramer called PepsiCo “too cheap relative to its growth rate,” and he noted different factors that could be weighing on the stock, like the rise of GLP-1 weight loss drugs and scrutiny on junk food from Health and Human Services Secretary Robert F. Kennedy Jr. Cramer said he bets Netflix will report a great quarter, but he said the bar for the streaming giant is high.
On Friday, American Express, 3M and Charles Schwab will report earnings. According to Cramer, American Express tends to sell off even when the report is good. The industrial sector has been doing well lately, and Cramer said 3M might report one of the best quarters of the group. He was also optimistic about Charles Schwab, but said “the short-sellers like to come out and color the opening of trading when Schwab opens,” advising investors to be careful before they buy.
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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Wells Fargo, BlackRock, Goldman Sachs and Abbott Laboratories.
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