Earnings

Jim Cramer's Outlook for the Week: Fed Decisions and Tech Earnings

Published January 25, 2025

Next week marks the beginning of earnings season on Wall Street, and CNBC's Jim Cramer is gearing up to track several key developments. Focus will primarily be on the meeting of the Federal Reserve and the earnings reports from major tech companies. Cramer cautions investors against making any significant trades during this time.

"It's going to be an intense week. Expect a whirlwind of earnings reports and possible sound bites from President Trump that could shake things up," Cramer remarked. "As I always emphasize, it's best to avoid making hasty decisions amid the earnings excitement; instead, just stay informed."

On Monday, Cramer plans to analyze earnings from SoFi and AT&T. He anticipates positive results for SoFi, despite its stock being heavily shorted. For AT&T, he also expects good news based on favorable performances from similar companies like Verizon.

Tuesday will feature a report from General Motors. Cramer believes GM will deliver strong results, but the stock may drop due to the heavy market attention on Tesla. Another report on Tuesday will come from Starbucks, and Cramer expresses optimism regarding the new CEO, Brian Niccol, and his vision for the coffee chain. Cramer recalled how Niccol successfully transformed Chipotle and suggested that Starbucks might be worth investing in after the CEO outlines his plans.

The midweek will be action-packed. The Fed is set to announce its latest decision on interest rates on Wednesday, and Cramer does not foresee any cuts given the current employment strength. Earnings for T-Mobile and ServiceNow will also be released. Cramer predicts an upward trend for T-Mobile and flags ServiceNow as a potential buy if it dips post-report. Additionally, tech giants Microsoft and Meta are reporting, with Cramer describing their outcomes as unpredictable. Finally, Tesla will announce its earnings, and Cramer noted that even with a disappointing report last time, the stock still increased in value, making it a recommended hold.

On Thursday, Caterpillar is expected to report, and Cramer highlighted that the company is focusing more on long-term growth rather than just cyclical trends. Also, Apple will be reporting, and although Wall Street anticipates a miss, Cramer believes it is still a solid investment for the future, trusting in the company's ability to resolve any ongoing issues. Another company reporting is Intel, which Cramer believes needs to enhance its cash flow and improve its balance sheet before investors should consider holding its stock.

Finally, on Friday, both Chevron and Exxon Mobil will release their earnings. Cramer expressed reluctance to invest in these oil companies, as they may increase drilling activities with fewer federal regulations under President Trump.

Adding to the week's events, the Labor Department will also unveil the personal consumption expenditures price index on Friday, a critical inflation indicator for the Fed. Cramer indicated that he does not expect this report to be favorable, citing too much consumer spending.

Cramer, Earnings, Investing