Four Things To Watch Next Week
In the days to come, there will be four indicators on where the economy is heading, Cramer said on Friday's Mad Money — how banks perform now that financial regulatory reform has been finalized, any updates on BP, unemployment data out Friday and earnings reports from various companies throughout the week.
Here's Cramer's thoughts on each:
FINREG AND FINANCIALS
Now that Congress has a finalized version of financial regulatory reform, Cramer noted that banks were able to rally Friday. Restrictions on derivative-trading are tough, he said, but many expected worse. The good news is that banks now have clarity — at least they know what's going to happen, even if it's bad for business. That gives the financials a much needed lift, but how long will it last?
"After the healthcare companies were eviscerated by Congress, they rallied for about a week at the conclusion of the festivities and hoopla," Cramer said. "Could be the same here."
EYES ON BP
Cramer remains concerned that claims produced by the Gulf oil spill will ultimately prompt BP to file for bankruptcy protection. The oil giant's stock "really affects the mood of the market," Cramer said. He remains skeptical of the London-based company's ability to overcome the disaster surrounding the spill.
EARNINGS, EARNINGS, EARNINGS
Several companies are reporting quarterly financial results next week, including Micron , which is scheduled to report Monday. MU is a semiconductor that makes the flash chips that are used in many smartphones and Apple's iPad, as well. Cramer thinks this semi is part of the "Internet tsunami" and said its "positive trends" could give the market a push.
Barnes & Noble is also scheduled to report earnings Monday. Their conference call should give more color on the e-reader price war, Cramer said.
In the food space, General Mills reports on Tuesday. Cramer thinks the Minneapolis-based food giant is a better tell than Kraft or ConAgra , both of which recently reported bad numbers.
"The fact that ConAgra hasn't gotten knocked after its poor results while many tech stocks with much better results were hit, tells us that people are playing defense in the food space," Cramer said. "So just imagine how General Mills can do if it delivers a good quarter."
On Wednesday, agricultural biotech company Monsanto reports. Cramer doesn't like Monsanto, but said information from their conference call can help give direction on fertilizer plays, like Potash and Agrium .
June's unemployment rate will be released on Friday. Unemployment is still "sky-high," Cramer said. It needs to be fixed before the markets can improve.
"The stats on Friday will frame the big-picture macro sentiment as we head into the holiday weekend before earnings season," Cramer said. "So pay close attention."
When this post was published, Cramer's charitable trusted owned Apple.
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