Jim Cramer expects volatile week as tech earnings and midterms approach

Jim Cramer’s week ahead centers on a packed calendar after a sharp reversal in technology shares. The CNBC host said Friday that Wall Street volatility may persist, with investors watching major earnings reports, the midterm elections and the monthly jobs report.

According to CNBC, the Nasdaq Composite rose 2.3% through Wednesday before falling 2.9% on Friday, leaving it down 2% for the week. The S&P 500 ended down 0.6% after a 1.8% Friday decline, while the Dow Jones Industrial Average finished down 0.9% after dropping 1.1% Friday. CNBC said renewed worries about artificial-intelligence spending weighed on technology stocks.

Cramer urged caution about trying to identify a bottom for the Nasdaq. He said the coming election, uncertainty overseas, the jobs report and another heavy round of corporate results were reasons to expect a potentially unsettled week. He also warned that favorable earnings results may not necessarily lead to higher share prices.

What is Jim Cramer watching in the week ahead?

Apple and Palantir are scheduled to report Monday, CNBC said. Cramer remains positive on Apple, while saying its valuation of almost 40 times earnings leaves little room for a disappointing result. He said he expects encouraging results from Palantir, citing customer feedback about the value of its AI software.

An earnings report gives investors a company’s latest financial results, while an earnings call is management’s presentation and discussion of those results and its outlook. Cramer’s comments are his market views, rather than confirmed results or forecasts.

Tuesday brings the midterm elections, as well as reports from AMD, Pfizer and Amgen. Cramer said he will watch whether a change in congressional control could put planned data-center projects at risk of delays amid political opposition. He said he would not dismiss the data-center theme because many states may still welcome such facilities.

AMD’s report is an important test for the semiconductor sector following Intel’s disappointing results, CNBC reported. Cramer said he expects AMD to post stronger numbers than Intel. He also said Pfizer and Amgen could benefit from renewed investor interest in pharmaceutical stocks.

CVS Health and McDonald’s are due Wednesday. Cramer said CVS’s healthcare position interests him, though he remains concerned about its pharmacy-benefit-management business. For McDonald’s, he said he wants to see whether its restaurant-improvement strategy is gaining traction.

Kimberly-Clark is scheduled Thursday. Cramer said he is optimistic about the consumer-products company following its planned merger with Kenvue, and noted that its shares have benefited from investor rotation toward consumer staples.

The monthly jobs report is due Friday. Cramer said he expects strong hiring alongside limited wage growth, a mix he believes could ease inflation concerns and help explain relatively stable Treasury yields.

This story draws on original reporting from CNBC.