CNBC’s Jim Cramer on Friday walked investors through next week on Wall Street, telling them to pay attention to new economic data and earnings from Micron and Costco . He also suggested many sectors will continue to rally, even as some investors may be skeptical of recent gains.
“One of these days, we will have a top — a genuine peak — but the things that are supposed to signal a top simply haven’t done their job,” Cramer said. “That’s why so many people truly dislike this market, even though it keeps going higher.”
On Monday, Cramer suggested Wall Street will learn more about President Donald Trump’s Friday meeting with Chinese leader Xi Jinping. The White House told CNBC the two had made progress towards a deal regarding TikTok, although no agreement was made yet. Cramer said he thinks more details from Trump and Jinping’s discussion will move stocks.
Tuesday brings earnings from AutoZone and Micron. He expressed optimism about the car parts’ dealer’s business, saying many Americans drive used cars and perform their own maintenance. Cramer said Micron is one of his favorite companies, but it has a “sink or swim business.” He said the chipmaker’s stock has a had a huge run, and he would wait for a pullback before buying.
New home sales data will be released on Wednesday, and Cramer said he’s hoping to see more transactions. While the pool of older homes is growing, he suggested home sales won’t increase until mortgage rates decline. Uniform maker Cintas and homebuilder KB Home will report Wednesday, and Cramer said the former could deliver an “upside surprise.” But he said KB Home might mirror peer Lennar , which saw shares drop after it posted an earnings miss on Friday.
Jabil and Costco are set to post earnings on Thursday. Cramer was positive on Jabil, saying there’s a lot of demand for the electronics manufacturer’s products. While he said he’s in favor of holding Costco, he indicated the quarterly results might not move the stock.
On Friday, the Labor Department will report the latest personal consumption expenditures price index, which is a key inflation metric for the Federal Reserve. Cramer said ideally, the data would show that tariff-related inflation is “one-off in nature.”