CNBC’s Jim Cramer noted on Friday that the upcoming earnings season will provide investors with a clearer view of corporate performance and the strength of the AI trade.
“No more guesswork,” said the “Mad Money” host. “We’re entering the full earnings season, so we don’t have to obsess over every data point to decide where to allocate capital.”
On Friday, stocks climbed, driven by the tech sector, as traders recovered from a volatile week marked by rising Treasury yields, higher oil prices, and slipping AI shares. Against this backdrop, Cramer looked ahead to the week when major banks launch earnings season alongside key semiconductor reports and inflation data.
Tuesday brings earnings from Goldman Sachs, Wells Fargo, JPMorgan Chase and Citigroup. Cramer said recent weakness in bank stocks could set the stage for a rally if results exceed expectations.
Cramer remains bullish on the Charitable Trust holdings of Goldman Sachs and Wells Fargo. He pointed out that Goldman’s strength in bond issuance and trading could offset slower deal‑making, while Wells Fargo’s attractive valuation and potential for improving metrics make it especially appealing.
Cramer was more cautious about JPMorgan, noting that its stock is priced for near‑perfect execution, and he wants to see whether Citigroup can rebound.
Club holding Johnson & Johnson also reports on Tuesday. Cramer noted that the stock often sells off during its earnings call despite strong underlying results, creating a potential buying opportunity. “With 18 potential blockbuster drugs in the pipeline and among the best cardio and oncology franchises, J&J needs to be bought when it gets crushed,” he said.
The consumer price index will be released Wednesday morning, and Cramer will be watching for signs that inflation is easing outside of energy.
Semiconductor equipment maker ASML also reports. He added, “If ASML raises guidance and points to solid demand, then you should be ready to buy, perhaps picking up Lam Research or Applied Materials, my two favorite semiconductor capital‑equipment stocks.”
Bank of America, Morgan Stanley and BlackRock round out Wednesday’s financial earnings. Cramer especially likes Morgan Stanley’s growing wealth‑management business, which provides an important growth driver beyond investment banking.
Thursday could be the biggest day for semiconductor stocks, with chipmaker Taiwan Semiconductor Manufacturing reporting earnings. “If it’s strong, we could see a rally of immense proportions,” Cramer said.
The producer price index and retail‑sales figures, also released Thursday, will offer fresh clues on inflation and consumer spending.
Brokerage firm Charles Schwab reports on Thursday and holds an analyst meeting. Cramer said the events could shed light on the growing influence of individual investors in the market.
Despite the busy earnings calendar, Cramer warned that rising bond yields remain a major risk.
“We have earnings, we have to worry about oil, and we need to accept that we could see a long‑bond yield above 6% due to demand for money from the Treasury and private enterprise — chiefly data‑center investments,” Cramer said. “When it comes to bonds, there’s too much supply and not enough demand right now. That’s coloring everything, and we must respect how challenging the market can become when interest rates keep rising.”
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