As earnings season takes off, CNBC’s Jim Cramer on Friday advised investors about what to follow next week on Wall Street. He pinpointed reports from several major banks, along with Netflix and Taiwan Semiconductor.
“We’re at the beginning of one of the year’s four reporting periods,” he said. “They’re jumbled. They’re open to a lot of interpretation. They’re fast. So listen to the calls, ponder a moment, and only then should you pull the trigger.”
But on Monday, Cramer said he won’t be focused on earnings. Instead, investors will be digesting China’s new stimulus package, which is set to be released this weekend. He expressed optimism about the Chinese economy if the government can invest billions in real estate and the stock market.
Tuesday brings reports from major players in the financial sector: Charles Schwab, Goldman Sachs, Bank of America and Citigroup. Wall Street hasn’t favored Schwab as of late, but Cramer wondered if that could change after this report. He’s said he’s confident in the success of Goldman Sachs and noted that analysts have been positive on Citigroup. Bank of America could see a boost now that Warren Buffett is no longer required to frequently report his sales of the stock, Cramer added.
Johnson & Johnson, Walgreens and UnitedHealth Group also report earnings on Tuesday, with Cramer noting that the latter regularly beats expectations. Johnson & Johnson this week saw a new development in its ongoing talc lawsuits that could aid resolution efforts. Cramer suggested the company might be closer to putting its litigation troubles to bed so investors can start to focus on earnings. He also predicted Walgreens’ quarter will disappoint.
On Wednesday, Morgan Stanley and Abbott Laboratories will report. Morgan Stanley shares have climbed since the company brought on a new CEO at the beginning of the year, Cramer said, suggesting investors “hold on for the ride.” Although the future of Abbott Laboratories’ lawsuits remains up in the air, Cramer said recent comments from the Food and Drug Administration, the Centers for Disease Control and Protection and the National Institutes of Health — which suggest that the contentious baby formula doesn’t seem to harm infants — could turn the tide in the company’s favor.
Taiwan Semiconductor reports on Thursday, and Cramer said the stock has been strong because it manufactures highly-valued chips from Nvidia. He was optimistic about Netflix’s report that day because of its new ad tier and the highly-anticipated release of Squid Game 2, which could draw in subscribers.
On Friday, Procter & Gamble will report, and Cramer said he’s worried about the company’s business in China. SLB and American Express also report earnings on Friday, and Cramer noted the former company’s stock hasn’t “been able to catch fire” even as oil prices have risen in recent weeks. He also said the credit card outfit is one of his favorites and he’d be a buyer if the stock dips before the report.
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, Morgan Stanley and Abbott Laboratories.
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