Market Overview for Friday
On Friday, stock markets experienced a decline despite a warm reception to President Donald Trump’s decision to nominate Kevin Warsh as the new Federal Reserve Chairman. Jim Cramer noted that, “The president seems a bit less worried about inflation now,” emphasizing that Warsh’s views align more closely with Trump’s focus on economic growth and the well-being of American citizens.
Looking ahead to next week, several companies are set to announce earnings. Eaton will report on Tuesday, followed by Eli Lilly and Alphabet on Wednesday, and Bristol-Myers, Linde, and Amazon on Thursday.
In more specific news, Apple saw its stock drop even after posting impressive quarterly earnings, highlighted by a 23% increase in iPhone sales. Cramer indicated, “While I don’t expect prices to rise today, I’d recommend buying,” pointing out potential supply issues and the volatile prices of memory components crucial for iPhones. He mentioned that the demand for iPhones, particularly in China, is at an all-time high, yet the company doesn’t receive the acknowledgment it deserves.
In a separate development, Guggenheim upgraded GE Vernova from a Hold rating to Buy, outlining a price target of $910. Analysts suggested that the electrification unit could see improvements in its free cash flow and EBITDA margins. Cramer added that GE Vernova’s stock could reach $1,000, especially if they secure an energy deal with Microsoft to bolster its AI infrastructure. Although the stock dipped earlier this week following disappointing profit reports, Cramer saw it as an opportunity, stating an upgraded equivalent of a Buy and maintaining a price target of $800.
At the conclusion of Friday’s discussion, stocks like American Express, Chevron, Sandisk, Deckers Outdoor, and Verizon were highlighted. Cramer’s charitable trusts have holdings in AAPL, GEV, ETN, LLY, GOOG, BMY, and LIN, among others. Subscribers of Jim Cramer’s CNBC Investment Club get trade alerts prior to any transaction he makes. After alerting members, he typically waits 45 minutes before executing trades, and a 72-hour waiting period follows any stock discussion on CNBC.
