Jim Cramer of CNBC cautioned on Friday that the recent volatility on Wall Street might continue. This week, stocks faced challenges, particularly with technology shares taking a hit due to renewed worries surrounding the artificial intelligence sector. Notably, the Nasdaq Composite rose by 2.3% up until Wednesday, only to dive by 2.9% on Friday, closing the week with a 2% decline. Similarly, the S&P 500 hovered around a 1.6% gain through Wednesday but fell 1.8% later that week, wrapping up at a 0.6% loss. The Dow Jones Industrial Average experienced an uptick of 0.5% during the week before sliding 1.1% on Friday, leaving it down by 0.9% overall.
“After such a rough week for tech, I wouldn’t assume we’re out of the woods just yet,” Cramer remarked. He highlighted several factors—including the upcoming election, international uncertainties, the jobs report, and a flurry of earnings announcements—that could influence market stability. His advice? “Don’t try to predict the lowest point for the Nasdaq just yet. Consider picking up some high-quality stocks that may be undervalued, and remember, in this climate, even strong earnings reports might not necessarily boost stock prices.”
Looking ahead, Cramer outlined some key events for the following week.
Monday
Apple is set to release its earnings report after the market closes. The company’s shares recently reached record highs, driven by excitement for new products like the Duo foldable phone. While Cramer is optimistic about Apple’s prospects, he pointed out that its valuation—nearly 40 times earnings—could pose a risk if results disappoint. “You can trade it, but I’m inclined to hold onto it,” he noted.
Additionally, Cramer anticipates positive results from Palantir, based on favorable customer feedback regarding its AI software.
Tuesday
As midterm elections take center stage, Cramer is keeping an eye on potential shifts in congressional control that could impact ongoing data center projects. He expressed concerns that increased political opposition to such facilities might disrupt growth for companies reliant on AI infrastructure. However, he remains hopeful, suggesting that many states still support data centers.
On the earnings front, Advanced Micro Devices is expected to report, an important indicator for the semiconductor sector following Intel’s recent disappointing results. Cramer is predicting AMD will outperform Intel.
Pharmaceutical companies Pfizer and Amgen will also release their earnings, with Cramer believing that a resurgence of investor interest in healthcare could bode well for them.
Wednesday
CBS Health will report its earnings, and Cramer is interested in how it positions itself in the healthcare market. He did express some concerns regarding its pharmacy benefit management segment. “If they could separate from that part, the stock might rise,” he speculated.
Also on Wednesday, McDonald’s earnings will draw attention. Cramer is eager to see if the company’s efforts to improve its restaurant experience are yielding results amid some franchisee concerns.
Thursday
Kimberly-Clark is set to report earnings as well, and Cramer remains positive about the company following its recent merger with Kenvue. He mentioned that the stock has gained from a market shift toward consumer staples and suggested, “If it dips before the report, that might be a good buying opportunity.”
Friday
The monthly jobs report will serve as another critical test for the markets. Cramer anticipates strong hiring figures, although he expects wage growth to remain modest—this could alleviates inflation fears and provide stability for Treasury yields.
The CNBC Investing Club will host its annual meeting, where Cramer and his colleague Jeff Marks will discuss the portfolio, market risks, and highlight their biggest investment winners.
