CNBC’s Jim Cramer on Friday outlined what to watch in Wall Street’s week ahead, from key labor data to big earnings reports from McDonald’s, Robinhood and others.
“There’s a lot going on next week, but the most important thing, believe it or not, is the Labor Department’s nonfarm payroll report on Wednesday,” Cramer said. “If that comes in soft, it means the Fed can keep cutting rates, and that’s great news for the stock market itself.”
Cramer said the recent rallies in decent stocks like PepsiCo, Procter & Gamble and Johnson & Johnson suggests the market believes the U.S. economy is showing signs of weakness. The January jobs report was originally due out Friday morning, but was delayed a few days due to the partial U.S. government shutdown. According to FactSet, economists estimate the U.S. added 80,000 jobs last month.
The “Mad Money” host then turned his attention to upcoming corporate earnings.
CVS Health reports quarterly results on Tuesday morning. Although the stock has been hammered with other health insurers on the Trump administration’s proposed reimbursement rates for Medicare Advantage plans, Cramer said it’s the only stock in that space he would own.
“CEO David Joyner has done a terrific job and I think it’s a fascinating time to own the stock,” he added. “They’re the last real national drugstore chain now that Walgreens has been taken private.”
Meanwhile, Cramer said DuPont’s earnings report that same day should highlight how great of a job CEO Lori Koch has done to improve the chemicals company. DuPont spun off its electronics business into a separate company called Qnity late last year, a long-awaited move that has helped kickstart the stock, which has soared about 58% over the past six months. DuPont is also a holding in Cramer’s Charitable Trust, the portfolio managed by the CNBC Investing Club. The Club booked gains on this stock into strength on Thursday.
Tuesday also brings results from Robinhood. Cramer said this one has been concerning investors because of how closely its trades with cryptocurrency markets. Shares of Robinhood are down nearly 27% year to date versus the S&P 500‘s 1.3% gain.
McDonald‘s releases earnings on Wednesday. Cramer described the fast food chain as “blessed” because while beef inflation remains an issue, its value proposition has improved for cash-strapped consumers.
Finally, Cisco Systems is up to bat after the bell. Shares of the networking company have surged ahead of Wednesday’s report, up 10% year to date. “The stock’s been soaring. I don’t know. We have to find out if this is a company that’s got less software [and] more hardware,” Cramer said. Cisco is also a holding in Cramer’s Charitable Trust.
