CNBC's Jim Cramer gave viewers a peek at the week of earnings reports. Later in the show the "Mad Money" host says Costco has a China problem, but it's not the tariffs on imports from the country.

An initial United States-China trade agreement appears to finally be coming to fruition.

CNBC's noted that the Chinese government has a history of backing away from its verbal commitments but said the tariffs that remain on imports from China are a "powerful enforcement mechanism."

The "phase one" deal, which has yet to be signed by both countries, includes some tariff relief from the U.S. and agriculture purchases from China. After a volatile trading day, the major averages all inched higher by the close. The finished at 28,135.38, the 3,168.80 and the 8,734.88.

"Now that we've got a phase one trade deal with China, we can go back to focusing on the earnings," the "Mad Money" host said. "I think next week — with the exception of FedEx — we're going to see a lot of good ones."

Costco has a problem in China, but it has nothing to do with tariffs, Cramer said.

The problem is Shanghai, a city of nearly 25 million people, has only one Costco store, the host said.

Pair it with Costco's ability to deftly handle tariffs in the U.S.-China trade war, and it "sounds to me like a terrific investment thesis for owning Costco's stock for years and years to come," Cramer said.

In Cramer's lightning round, the "Mad Money" host zips through his responses to callers' questions about their favorite stock picks of the day.

Berkshire Hathaway: "John, we stick with Berkshire B. The stock is breaking out, my friend."

Gannett: "It's newspapers. Sorry. Forget it, Jake. It's newspapers."

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