CNBC’s Jim Cramer on Friday laid out his game plan for the week ahead after what he called one of the most “remarkable” rallies he’s ever seen.
“If you didn’t believe we could have still one more week where we’d rally 3%, you’d be right,” Cramer said. “We actually rallied 4% thanks to today’s gigantic moves as peace seems to be breaking out in the Middle East.”
The major averages surged on news of Iran reopening the Strait of Hormuz during the ceasefire between Israel and Lebanon — a critical artery for global oil transport. The Dow Jones Industrial Average jumped 869 points, or 1.7%, while the S&P 500 and Nasdaq gained 1.2% and 1.5%, respectively. The Nasdaq extended its winning streak to 13 sessions — its longest positive run of consecutive sessions since 1992.
Cramer said the market’s resilience has been striking, noting that stocks have rallied through nearly every phase of the war with broad-based participation across sectors.
The Mideast conflict, however, is not over yet. President Donald Trump said the U.S. naval blockade on Iranian ships and ports “will remain in full force” until Tehran reaches a deal with Washington to end the war.
With that in mind, Cramer turned to the week ahead, where a packed slate of earnings will help determine whether the rally can keep running.
Monday
Alaska Air reports, and while it’s not typically a focal point, Cramer said the possibility of the end of the war could revive merger activity across the airline space as the post-conflict backdrop improves.
Tuesday
Cramer is optimistic about the results from RTX, encouraging investors to buy the dip ahead of its report. He highlighted the company’s unique mix of defense strength and commercial aerospace exposure.
After the close, United Airlines reports, with investors watching for any commentary on a potential merger with American Airlines.
Wednesday
“Wednesday’s pure dynamite,” Cramer said.
Boeing and GE Vernova report and could be “huge movers.” Boeing has been pressured by fears of prolonged conflict weighing on aircraft demand, but Cramer expects those concerns to be addressed on the call. GE Vernova remains a key beneficiary of data center power demand, and Cramer said investors are buying it for orders in years to come that he expects will come through.
Data center infrastructure firm Vertiv, which reports Wednesday morning, has already seen a massive run heading into earnings. A lead up like that, “makes me want to be careful,” he warned.
After the bell, it’s Tesla. Cramer said investors are far more focused on autonomy, robotics, and adjacent businesses than on its core auto sales. “We aren’t interested in pigeonholing Tesla as an auto company.”
Thursday
Blackstone reports, and Cramer said he’s looking for clarity on its private credit exposure after recent redemption concerns, though he expects an overall solid update.
American Express is another key name. He noted the stock often sells off on earnings before rebounding shortly after, making it a potential buy on weakness.
He also highlighted Lockheed Martin as a potential standout, calling it a “blockbuster” candidate given strong government demand and ongoing defense strength at the end of the day. “It’s a buy here even if there’s no more war.”
Perhaps “the most important report of the week,” Cramer said, comes after the close from Intel. Cramer praised CEO Lip-Bu Tan for executing a major turnaround, though he warned the stock could still see a muted reaction even after strong results.
Friday
Procter & Gamble reports, with Cramer expecting a weak quarter but still viewing the stock as an attractive defensive hedge and at the cheapest level shares have been in years.
Disclosure: Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owns shares of Boeing, GE Vernova, and Procter & Gamble.
