Cramer Says These 6 “Positives” Could Boost Stocks Into Earnings Season

Jim Cramer explains why stocks rose on Monday

CNBC’s Jim Cramer said Monday that several elements could help propel shares higher, even during what could be an ugly earnings season.

A new earnings season begins Tuesday with some of the biggest companies across technology, retail and consumer staples. companies like Microsoft, IBM and service now are scheduled to release their quarterly financial results this week.

Here are the six factors that could help stocks when companies report earnings, according to Cramer:

  1. More and more companies are making layoffs. company incl Microsoft, Foreclosure and Wayfair Recently announced staff cuts, and their shares skyrocketed.
  2. The US dollar and interest rates peaked last fall. Cyclical, more economically sensitive stocks have since rallied as many companies do a large portion of their business overseas.
  3. The Federal Reserve could almost finish raising interest rates. This is after a Wall Street Journal reportand could mean that bad credit worries – and possible consequential damage for banks – could be over.
  4. China’s economy is reopening. The return of the world’s second largest economy is great news for businesses, particularly in the entertainment, travel and consumer goods sectors.
  5. The government is willing to spend a lot of money on infrastructure. Funds from the bipartisan Infrastructure Act and the Inflation Reduction Act provide a “safety net” for companies building roads, bridges or tunnels.
  6. Analysts upgrade chip stocks. Barclays made an upgrade on Monday modern micro devices and Qualcomm to overweight. “Remember the [semiconductor chips] The inventory glut included everything from cell phones to desktops to high-performance computers. It’s a very big deal,” Cramer said.

Cramer cautioned that while the earnings season still hasn’t been smooth sailing, stock declines aren’t necessarily unwelcome.

“At the moment of first printing when we see the numbers I still expect some vicious declines. The difference to 2022? Those declines could be for sale,” he said.

Disclaimer: Cramer’s Charitable Trust owns shares in Advanced Micro Devices, Qualcomm, Salesforce and Microsoft.

According to Jim Cramer, these 6 positive factors could help lift stocks during earnings season

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