Jim Cramer expects volatile week as earnings, midterms and jobs data approach

Jim Cramer’s week ahead outlook calls for continued market volatility, with technology earnings, the US midterm elections and the monthly jobs report due after a turbulent week for equities. The Nasdaq Composite ended the week down 2%, while the S&P 500 fell 0.6% and the Dow Jones Industrial Average lost 0.9%, after each index gave up gains in Friday’s session, CNBC reported.

Cramer, the host of CNBC’s “Mad Money,” said concerns over artificial-intelligence spending had weighed on technology shares. He cited the election, uncertainty abroad, labour-market data and a heavy earnings calendar as reasons for caution, and said strong corporate results might still fail to lift a company’s shares.

What is Jim Cramer watching in the week ahead?

Apple and Palantir are scheduled to report results on Monday. Cramer said Apple’s shares had recently reached a record high and that its valuation, at almost 40 times earnings, gave the company little scope to disappoint. He also said he expected encouraging results from Palantir, citing customer feedback on its AI software.

Tuesday brings the midterm elections and reports from Advanced Micro Devices, Pfizer and Amgen. Cramer said he was watching whether a change in control of Congress could threaten planned data-centre projects. He also warned that political opposition could delay construction and weigh on companies dependent on AI-infrastructure spending, while adding that some states would still welcome such facilities.

That concern is a forward-looking view from Cramer, rather than an established outcome. Data centres are among the most energy-intensive types of buildings and account collectively for about 2% of US electricity use, according to the US Department of Energy.

For AMD, Cramer said he expected results stronger than those of Intel, whose latest results CNBC described as disappointing. He said Pfizer and Amgen could benefit from renewed investor interest in pharmaceutical shares.

CVS Health and McDonald’s are due to report on Wednesday. Cramer said CVS’s healthcare position interested him, but he remained concerned about its pharmacy-benefit-management operation. For McDonald’s, he said he would look for evidence that the company’s restaurant-improvement strategy was gaining traction, following reported concerns from franchisees.

Kimberly-Clark reports on Thursday. Cramer said he was optimistic about the consumer-products group’s prospects after its planned merger with Kenvue, and noted that its shares had benefited as investors moved toward consumer-staples companies.

Why does the jobs report matter for markets?

The US jobs report due Friday is the final major item on Cramer’s calendar. He said he expected strong hiring alongside limited wage growth, an outcome he believes could ease inflation concerns and help account for relatively stable Treasury yields. That is his forecast, and the official data have yet to be released.

Cramer advised investors against trying to identify a near-term bottom for the Nasdaq. He said selling pressure could create opportunities in companies he considers high quality, while cautioning that the market may not reward even favourable earnings reports.

This story draws on original reporting from CNBC.