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Dell’s analyst meeting and earnings from McCormick, Delta
CNBC’s Jim Cramer on Friday guided investors through next week on Wall Street, highlighting earnings reports from McCormick and Delta Air Lines as well as Dell‘s analyst meeting. He also suggested the economy outside of data center-related business is getting weaker and advocated for another rate cut from the Federal Reserve.
“We have a lot of anecdotal evidence of weakness, but not anything hardcore. We need to watch this, as we’re about to head into earnings season, and the bulls could run into serious trouble if the Fed doesn’t take action,” he said. “For my money, the economy away from the data center buildout is getting weaker. This is no time for indecision — the Fed needs to cut.”
Monday brings earnings from beer maker Constellation Brands, and Cramer noted the stock has fallen out of favor on Wall Street along with other alcohol companies. He also mentioned that some of Constellation Brands’ products, including Modelo and Corona, are popular among Hispanic consumers — who the company said have pulled back due to concerns about President Donald Trump’s immigration policies and potential job losses.
On Tuesday, Cramer said he will be paying attention to McCormick’s quarterly report. He said the spice maker is usually reliable, but that reliability hasn’t been enough “to move the needle for this stock” as the whole packaged food sector sees weakness. However, he added that McCormick may be able to do well in a slower economy “because spices are excellent trade down material.” Cramer said he thinks Dell’s Tuesday analyst meeting will be a highlight of the week, noting that the tech company has been working with Nvidia to integrate artificial intelligence.
Wednesday brings an investor day from Solstice, Honeywell‘s materials spinoff company. Cramer called Honeywell’s breakup a “pretty bold move,” and also discussed the other two spinoffs, an aerospace business and a building automation company.
PepsiCo, Delta and Levi Strauss are set to report on Thursday. Cramer wondered how the soda maker will react to an activist investor who has taken a big stake in the company and wants to make changes, noting that PepsiCo already faces issues as the popularity of GLP-1 weight loss drugs grows and consumers become more health conscious. Cramer called Delta a “tough stock” to own, as it’s down around 5% year-to-date even though it’s among the best performers in its sector. Cramer said he’s feeling good about Levi’s quarter, saying the company has become fairly reliable despite tariffs.
Chicago Federal Reserve President Austan Goolsbee will speak on Friday, and Cramer said his commentary matters because he’s a voting member of the Federal Open Market Committee. Cramer pointed out that Goolsbee told CNBC on Friday that he’s wary of cutting interest rates too quickly because of inflation. Many on Wall Street, along with Goolsbee, are “flying blind,” Cramer said, as the government shutdown delays the labor report — a key economic metric for the Fed.
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