CNBC's Jim Cramer warned on Friday that the volatility on Wall Street may not be over yet.
This week, the stock market experienced severe fluctuations, with renewed concerns about artificial intelligence trading dragging down tech stocks. The Nasdaq Composite Index, which is dominated by tech stocks, rose by 2.3% before Wednesday, but tumbled 2.9% on Friday, resulting in a 2% decline for the week. The S&P 500 Index followed a similar trend, rising by 1.6% before Wednesday before falling 1.8% on Friday, closing the week with a 0.6% loss. The Dow Jones Industrial Average also reversed its direction during the week, gaining 0.5% before Wednesday before dropping 1.1% on Friday, with a 0.9% decline for the week.
The host of "Mad Money" said, "After a brutal week for tech stocks, don't think that the worst is over. We still have elections, uncertainties overseas, employment reports, and another round of financial reports to come."
"What's my suggestion?" he added, "Don't rush to conclude that NASDAQ has hit rock bottom just yet. You can buy some high-quality companies that have been sold off, and remember, in this market, even outstanding financial reports may not be enough to drive a stock price up."
Against this backdrop, Cramer provides a forecast for each day of the coming week.
Monday
Apple will release its financial report after the market closes. Boosted by market enthusiasm for its latest products, including the upcoming Duo foldable phone, Apple's stock price has recently reached a record high. Cramer remains optimistic about the company, but also acknowledges that its price-earnings ratio of nearly 40 times leaves little room for error. "You can trade it, but I'll hold on to it," he said.
Cramer also expects that the release of Palantir's financial results will bring inspiring outcomes, due to the strong feedback from customers regarding the value of its AI software.
Tuesday
The mid-term elections in the United States have become a focal point, with Cramer paying attention to whether there will be changes in control of Congress, which could threaten planned data center projects. He warns that the growing political opposition to these facilities may slow down construction progress and harm companies that rely heavily on AI infrastructure spending. However, he said, "I won't rule out the entire data center industry, as there are still many states that will welcome them."
In terms of financial reports, Advanced Micro Devices will announce its results, which will be another important test for the semiconductor industry following Intel's disappointing outcomes. Cramer expects AMD's performance to be better than that of its competitor Intel.
Pharmaceutical companies Pfizer and Amgen will also release their financial reports. Cramer indicates that both companies may benefit from the renewed enthusiasm of investors for pharmaceutical stocks.
Wednesday
CVS Health will announce its financial results, and Cramer is still interested in the company's position in the healthcare sector. However, he expresses concerns about its pharmacy benefits management business. "I hope it can get rid of that business; that way its stock price would be higher," he said.
McDonald's financial reports will also be under attention. Cramer hopes to see whether the company's restaurant improvement strategy is being effective, given the concerns reportedly held by its franchisees.
Thursday
Kimberly-Clark will announce its financial results, and Cramer is optimistic about the prospects of this consumer goods company due to its plans to merge with Kenvue. As investors shift their attention to the consumer staples sector, the stock has already benefited, and Cramer remains bullish on this company. “If it falls before that happens, I think you should buy some,” he said.
Friday
The monthly employment report will provide another important test for the market. Cramer expects strong employment growth, but limited wage increases. This combination helps to alleviate inflation concerns and explains why U.S. Treasury yields remain relatively stable.
CNBC Investing Club will also hold an annual meeting, while Cramer and Jeff Marks will discuss investment portfolios, market risks, as well as their biggest investment winners.
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