CNBC’s Jim Cramer warned on Friday that volatility on Wall Street may not be over.
Stocks endured a turbulent week as renewed concerns about the artificial intelligence trade weighed on technology shares. The tech-heavy Nasdaq Composite climbed 2.3% through Wednesday before plunging 2.9% Friday, ending the week down 2%. The S&P 500 followed a similar pattern, rising 1.6% through Wednesday before tumbling 1.8% Friday to finish the week down 0.6%. The Dow Jones Industrial Average also reversed course, gaining 0.5% through Wednesday before slipping 1.1% Friday to end the week down 0.9%.
“After a brutal week for tech, don’t assume the worst is behind us,” the “Mad Money” host said. “We’ve got the election, uncertainty overseas, the jobs report and another slew of earnings.”
“My advice?” he added. “Don’t try to call the bottom in the Nasdaq just yet. Pick up some high-quality companies that are being thrown away, and remember, in this market, even great earnings might not be enough to send a stock higher.”
With that backdrop, Cramer turned to the week ahead.
Monday
Apple reports after the bell. Shares recently hit an all-time high, helped by enthusiasm for its latest products, including the upcoming Duo foldable phone. Cramer remains bullish on the company but acknowledged that its valuation of almost 40 times earnings leaves little room for disappointment. “You can trade it, but I am going to own it,” he said.
Cramer also expects encouraging results from Palantir when it reports, citing strong customer feedback about the value of its AI software.
Tuesday
The midterm elections take center stage, with Cramer watching whether a shift in congressional control could threaten planned data center projects. He warned that growing political opposition to the facilities could delay construction and hurt companies whose growth depends heavily on AI infrastructure spending. However, he’s “not going to write off the data center entirely because there are plenty of states that will welcome them.”
On the earnings front, Advanced Micro Devices reports, offering another important test for the semiconductor sector following Intel’s disappointing results. Cramer expects AMD to report better numbers than rival Intel.
Drugmakers Pfizer and Amgen also report. Cramer said both could benefit from renewed investor enthusiasm for pharmaceutical stocks.
Wednesday
CVS Health reports, and Cramer remains intrigued by the company’s position in the healthcare sector. However, he expressed concerns about its pharmacy benefit management business. “I wish it could disengage with that business; its stock would go higher,” he said.
McDonald’s earnings will also be in focus. Cramer wants to see whether the company’s restaurant improvement strategy is gaining traction amid reported concerns from franchisees.
Thursday
Kimberly-Clark reports, with Cramer optimistic about the consumer products company’s prospects following its planned merger with Kenvue. The stock has benefited from investors rotating into consumer staples, and Cramer remains bullish on the company. “If this one falls before then, I think you should pick some up,” he said.
Friday
The monthly jobs report will provide another important test for markets. Cramer expects strong hiring but limited wage growth, a combination that could help ease inflation concerns and explain the relative stability in Treasury yields.
The CNBC Investing Club will also hold its annual meeting, where Cramer and Jeff Marks will discuss the portfolio, market risks and their biggest investment winners.
