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As Wall Street enters a crucial phase of earnings season, investor attention is turning towards a series of significant corporate reports expected next week. CNBC’s Jim Cramer outlined which companies to watch closely, including Boeing, Tesla, IBM, and T-Mobile, during his Friday broadcast. Cramer expressed optimism over the market’s impressive run, anticipating this momentum may persist.
“It’s quite remarkable to see this market rise for six consecutive weeks,” Cramer remarked. “This trend continues despite higher interest rates established since mid-September and amidst a looming election in which both candidates propose to increase national debt significantly.”
On Monday, earnings will be reported from SAP, the German software firm, and Nucor, a leading steel manufacturer. Cramer expects a favorable outcome from SAP, highlighting the company’s success in guiding businesses toward innovative technology solutions, particularly in the realm of artificial intelligence. However, he expressed uncertainty about Nucor’s performance, noting recent struggles in steel pricing but added that the stock of steel producers often gains traction following the first interest rate reduction.
Tuesday will see a variety of reports from major companies such as General Motors, Danaher, RTX, and GE Aerospace. Cramer suggested that General Motors may present a buying opportunity, countering the prevailing pessimism regarding its earnings forecast. He anticipates positive outcomes for the aerospace companies and sees potential for biotech firm Danaher to regain its previous high-performance status thanks to new client acquisitions. Other reports include Kimberly-Clark, Norfolk Southern, and Texas Instruments. Cramer expressed a positive outlook for Kimberly-Clark and Norfolk Southern, particularly with the latter’s recent leadership change. He also favors Texas Instruments’ stock, despite its slightly more cyclical nature compared to other companies in the semiconductor space.
Wednesday brings reports from Boeing, Coca-Cola, and Vertiv. Cramer observed that institutional investors continue to purchase Boeing shares despite ongoing management concerns. He advised potential buyers to wait for the company’s upcoming secondary offering before investing. Cramer considers Coca-Cola a stable investment and recognizes Vertiv’s strong performance amid the data center industry’s ongoing demand. Additionally, IBM, Tesla, Lam Research, and T-Mobile will report after the market closes. Cramer predicts IBM will likely exceed expectations for the quarter. Following a recent setback during Tesla’s robotaxi presentation, he believes CEO Elon Musk will put forth significant efforts to deliver solid results for the company. While Lam Research may perform better than ASML in the semiconductor sector, Cramer pointed out the inherent risks, and he expressed curiosity about T-Mobile’s ability to maintain its success.
Thursday’s earnings announcements will include Southwest Airlines, Honeywell, UPS, Carrier, Deckers Outdoor, and Texas Roadhouse. Cramer pointed out that Southwest is embroiled in a proxy battle for its corporate direction and success hinges on reporting strong quarterly results similar to United Airlines. He expressed uncertainty regarding the outlook for Honeywell and UPS, while noting Carrier’s substantial stock price increase may limit further gains even if earnings are robust. Cramer anticipates a positive showing from Deckers Outdoor thanks to its popular Hoka sneaker brand and sees Texas Roadhouse as a strong performer.
Finally, on Friday, Colgate-Palmolive will announce its earnings. Cramer believes Wall Street will respond favorably to the results, although he perceives the enthusiasm as perhaps overinflated.
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