CNBC’s Jim Cramer on Friday walked investors through next week’s notable Wall Street action, pointing to quarterly reports from Costco and KB Home, as well as new economic data that could inform the Federal Reserve’s next decision about interest rates.
But regardless of the week’s events, Cramer said the Fed’s successful start to the easing cycle is leading the market in a positive direction.
“We’re in a rate cut cycle now, ok, it’s very different from, from the last couple years. So, the backdrop is now friendly. Don’t treat it with hostility, please,” he said. “When the Fed wants to be your friend, the best way to try to make money is by embracing the Fed’s friendship.”
Monday brings remarks from Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee, which Cramer said could provide more information about why the central bank cut rates by 50 basis points instead of a more modest 25. But he said the biggest event of the day will be initial data about sales of Apple‘s new iPhone, which some analysts said may disappoint. Cramer reiterated his “own it, don’t trade it” mantra on the stock.
On Tuesday, KB Home will post earnings and Cramer said he hopes the company can shed light on the state of the housing market, adding that it’s the “most intractable part of the now-waning inflationary economy.” Next year should be better for the homebuilder than 2024 because the Fed is lowering rates, he added. Also on Tuesday, computer developer Hewlett Packard will showcase some of its new artificial intelligence-enabled technology.
Semiconductor outfit Micron will report earnings on Wednesday along with Cintas, which supplies a range of materials, including uniforms, to businesses. Cintas may be able to provide information about the state of small businesses, Cramer said. He also pointed out that Micron’s stock has been crushed, and it could be a good buy here.
Retail grocery giant Costco reports on Thursday, and Cramer will be paying attention to which products are and aren’t selling. He noted that its stock has been performing well and said he thinks it will continue to do so.
On Friday, the Commerce Department will release the personal consumption expenditures price index, a key metric for the Fed as members weigh their next interest rate decision. Cramer said these figures will trigger “a whole new guessing game” on Wall Street about how many rate cuts — and by how many basis points — the Fed will implement, if at all, over the next few months.
