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Cramer: All eyes on earnings! What to expect in Q2

Cramer: All eyes on earnings

With earnings season right around the corner in July, Jim Cramer thinks this is a good time to take a look back at what has happened so far in the second quarter in order to prepare investors for what is ahead.

To start, he reviewed where the market is right now. Investors know that U.S. stocks have moved up nicely in the second quarter. Health care has dominated as the strongest performing sector, followed by financials, technology and consumer discretionary groups.

In Europe, the market is basically flat, and the Asian markets have done quite well, with Japan's Nikkei and Hong Kong pulling some great numbers.

Oil prices have also managed to recover dramatically, with West Texas Intermediate crude up more than 24 percent. Plus, interest rates have climbed, and the super-freaking-strong dollar finally stopped going higher.

So, with this in mind, what will Cramer look for as we head into earnings season?

A worker walks near a 747-8 airplane at the Boeing factory in Everett, Wash.
David Ryder | Bloomberg | Getty Images

It's all about the dollar for him. Last quarter, the strong dollar was the biggest explanation that multinational companies claimed for their pain when they reported numbers. And while Cramer believes that the dollar has finally peaked, he is interested to see if these companies also agree.

Second, he's got his eye on the financials, which is the largest sector in the . This group has basically done nothing for the past few years because of low interest rates. But with interest rates climbing this year, Cramer is interested to see just how the financials have benefited in the bottom line.

Cramer also thinks that once earnings season is in full swing, investors will figure out that the fears about energy were totally over the top. Analysts anticipated that earnings for energy stocks would be down 63.5 percent for the year. What most fail to realize is that those estimates were made back when crude was around $47. The price has changed quite a bit since then.

"I always think it's worth paying attention to rookie CEOs who are fielding their first or second conference call," Cramer added.

That means he will be watching companies like Boeing, which just announced that long-time CEO Jim McNerney will step down at the end of the month and be replaced by COO Dennis Muilenberg. Will Muilenberg to be able to focus on the positives, or will he target the headwinds of the strong dollar?

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Cramer is also looking to see if the new CEO of Cisco, Chuck Robbins, is ready to take the wheel and move the company in the right direction. And while it's not his first conference call, Cramer also wants to hear what McDonald's new CEO, Steve Easterbook, has to say since he first announced the company's turnaround plan in May.

Finally, Cramer also has a few individual stories he will be watching. Those are Fitbit and Twitter. Who the heck is going to run the conference call for Twitter anyway?

"Personally, though, I'd like to see the call handled by Anthony Noto, the CFO and one of the few Twitter execs who has the respect of Wall Street. Whoever the ringmaster may be, I expect Twitter to remain a circus," Cramer said.

Investors should prepare to keep these themes in mind and get ready for a wild ride on the market this summer.

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