When Jim Cramer looks back at this week, he is stunned with the mergers-and-acquisitions volume that took place. Given the companies that are set to report next week, should the market brace for more M&A activity?
"I think it is hard to keep this tape down given the amazing merger, acquisition and breakup activity that never seems to end," the "Mad Money" host said.
For instance, many healthcare stocks rallied on Friday as more rumors swirled about additional consolidations in that space. These days, takeovers in the food, drug and cable industries are happening on a regular basis.
This was evident with stocks such as Salesforce, as CNBC's David Faber reported that the software company was indeed recently in talks to be acquired by Microsoft. Cramer has always said that this deal made sense, as Salesforce is the "king of cloud" and that is exactly the type of exposure that Microsoft wants.
"While the talks seem to be stillborn over price, nothing would surprise me here," Cramer said.
Nevertheless, there is so much activity in mergers, breakups and activism happening that it seems like nothing can bring the market down. With this in mind, Cramer outlined the stocks and events that he will be watching next week.
Tuesday: AutoZone, Workday
AutoZone is one of Cramer's favorite stocks these days, as the average car on the road is 12 years old and will need repair. And while the analysts have turned their backs on it, Cramer thinks this stock should be bought on a post-earnings dip.
The CEO of Workday has been bullish on his company's prospects, and the company has won some big business recently. But what Cramer likes best about the company is that if it does well, not only will its stock roar higher but he anticipates some big moves in the rest of the tech cohort. So keep your eye on Red Hat, Tableau, ServiceNow and Splunk.
"I don't like the accessories group here; too volatile and fashion oriented, so I say take a pass on this one," Cramer said.
DSW: Cramer does like the appeal of value for DSW. However given the uncertainty in retail recently, he suggested to wait and see what happens before taking action.
Palo Alto Networks: While the stock did hit another all-time high on Friday, Cramer loves the cybersecurity industry lately and feels confident about the quarter.
Costco: It's too low here. Perhaps it will rally after it reports? Cramer bets that it will go higher
Humana analyst meeting: The company will lay out its strategy for cost containment, and this could be a game changer.
"I've been pounding the table for you to own something in the healthcare segment because I think consolidation is imminent, and Humana is often thought to be a target, as is Cigna," Cramer added.
Read more from Mad Money with Jim Cramer
Cramer Remix: Why you need to avoid Chinese stocks
Cramer: Mergers to unlock riches
Cramer: Stupid decisions that burn cash
Thursday: Abercrombie & Fitch, Avago
Abercrombie: Even though Cramer hates the teen apparel stocks, American Eagle Outfitters has shown some strength lately. So maybe Abercrombie can pull through?
Avago: Cramer anticipates that this one will blow away the numbers and could be a great trade going into the quarter.
Friday: Chicago purchasing managers' report, Big Lots
Chicago purchasing manager report: Cramer thinks it will be weak when taking into consideration the strong dollar's impact on exports. Cramer wants investors to be prepared about endless discussions on the Fed hiking rates if the number is too hot.