In his recent commentary, CNBC’s Jim Cramer provided an overview of the key market events expected for the upcoming week, emphasizing the significance of new consumer price index (CPI) data and a range of earnings reports as the earnings season kicks off. Among the highlights are earnings from major companies like Delta Air Lines, Domino’s Pizza, and several significant banks.
Cramer remarked on Friday’s stock market rally, attributing the positive movement to better-than-expected job creation figures from the previous month. He suggested that a market that responds positively to good news, such as robust job growth, is well-equipped to navigate the traditionally challenging month of October.
As the week begins, Cramer pointed to several important earnings reports scheduled for Tuesday. PepsiCo is expected to report its financial results alongside General Motors, which is hosting an investor day.
While some analysts have cut their price targets for PepsiCo, Cramer believes the stock might stabilize if the results align with expectations. Conversely, he noted that General Motors has had a strong performance throughout the year, and its stock could rise if the company maintains its current forecast, indicating optimism among investors.
Cramer Highlights Key Market Events Ahead, from CPI Data to Major Earnings Reports
Midweek, the Federal Open Market Committee (FOMC) will release notes from its latest meeting, which could provide insights into the central bank’s recent decision to cut interest rates by 50 basis points.
Cramer highlighted that Wall Street remains divided in its opinions regarding the Federal Reserve’s future actions, particularly in light of the positive labor data released on Friday. This data is likely to influence market sentiment and investor strategies as they seek to gauge the central bank’s next steps.
On Thursday, attention will turn to the release of the CPI report for September, a critical indicator that investors will watch closely for signs that could prompt a rate cut. Additionally, earnings from Domino’s and Delta are anticipated, with Cramer expressing cautious optimism about Delta’s performance.
He pointed out that Domino’s faced challenges in its last quarter due to weak international sales, leading to mixed analyst opinions about its upcoming report. Despite his reservations about airline stocks in general, he feels confident that Delta will present a strong narrative.
Finally, Friday will bring the producer price index (PPI) report, another vital piece of data that will inform the Federal Reserve’s decisions. Major financial earnings will also be released, including those from Wells Fargo, JPMorgan, and BlackRock.
Cramer described banks as currently being undervalued in the market, suggesting that investors should consider buying these stocks during any dips. This comprehensive outlook reflects Cramer’s belief that the upcoming week holds significant potential for market movements based on both macroeconomic indicators and corporate earnings reports.
