Cramer's week ahead: Fed meeting, nonfarm payrolls, Big Tech earnings
"Next week, no hyperbole, is pivotal. It's significant. I'm willing to make it a free-fire zone of superlatives," he said. "In short, next week determines the market's direction for the duration. Or at least the rest of the summer."
On Monday, Cramer said he'll be paying attention to earnings from Celestica and Whirlpool. Cramer said electronics manufacturer Celestica will give insight into how a number of tech companies are doing. President Donald Trump's tariffs might bode well for home appliance maker Whirlpool, which does substantial manufacturing in the U.S., he continued.
Tuesday brings reports from UnitedHealth, Boeing, Procter & Gamble, Starbucks and Visa. Cramer suggested UnitedHealth's cooperation with the government in a probe into its Medicare billing practices is a positive, even though the insurer remains "an un-investible story." Cramer said he hopes Boeing will detail its dealings with the government, and he predicted the stock will head higher.
To Cramer, Procter & Gamble's business is "a question of raw costs and tariffs versus marketing muscle," but added that he thinks the dollar's weakness abroad is a tailwind for the company. Starbucks will likely reveal plans for its business in China, Cramer said, adding that he thinks the coffee chain will also report improved throughput. According to Cramer, Visa's quarter is usually met with selling because its financials are hard to understand. He said he would be a buyer on the dip.
The Federal Reserve will meet on Wednesday, and Cramer said he thinks Fed Chair Jerome Powell will express the need for caution with respect to tariff-driven inflation. It's also likely Powell will say he intends to stay in his role until the end of his term next spring, Cramer added.
Wednesday also brings earnings from Microsoft and Meta, and Cramer said their stock moves indicate better-than-expected results. Cramer recommended waiting to hear from Microsoft management before making a move on the stock. He said he thinks Meta will report success in advertising, specifically from social media platform Instagram. He also wondered if the company would start charging for messaging program WhatsApp, saying the new revenue stream could be a windfall.
Big Tech earnings continue on Thursday, with Apple and Amazon set to report, and Cramer noted both companies stocks have been climbing steadily. While he said he still believes investors should own, not trade, Apple, he's expecting an "unexciting quarter" and a slowdown in growth from its services revenue stream. Cramer said he expects a solid quarter from Amazon, saying he thinks its business segments are performing well, namely its online retail, advertising and web services.
Friday, the Labor Department will release the nonfarm payroll report, which measures employment. Cramer said it would be ideal to see continued growth in hiring and stables wages. President Donald Trump can't "hector" Powell to cut rates if wages are higher, he continued. Oil giants Chevron and Exxon Mobil will report Friday, and Cramer said he is unsure about what the latter will say. But he said he expects Chevron to raise its outlook, noting the company just completed its acquisition of Hess after winning a legal battle with Exxon over disputed oil assets.
Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter.Disclaimer The CNBC Investing Club Charitable Trust owns shares of Amazon, Apple, Meta, Microsoft and Starbucks.
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