As indicated by Jim Cramer of CNBC, next Friday, the leading company neocloud will release its financial report, which may test investors' confidence in the already frustrated data center transactions.
The stock market rebounded and closed higher after a turbulent election week. This week, as Democrats took control of the House of Representatives, the Senate, and some key governorships, investors sold off companies related to artificial intelligence infrastructure construction. The rise on Friday was welcome after Wall Street experienced its worst day in 19 months, but it is not trustworthy. Cramer remains skeptical about any rebound, holding a similar view regarding the brief mid-term election rebound on Wednesday, which later proved to be short-lived.
Cramer believes that the market's concerns regarding data center spending and financing have not yet been resolved. "It feels like a dead cat bounce," said the host of Mad Money regarding the generally positive market on Friday. "I know we will never get a completely clear signal. But it seems there are still many sellers lurking, just waiting for a more substantial rebound in stock prices so they can exit."
Against this backdrop, Cramer is setting its sights on next week.
Monday
Constellation Energy will announce its financial results before the market opens, providing early insights into how political uncertainties may affect the power infrastructure that supports the data centers of AI.
Tuesday
On Holding will release its financial report, but Cramer still holds a cautious attitude towards this sports shoe company. He said that the industry feels increasingly crowded. “I’ll give up this time,” he said.
The U.S. Consumer Price Index will also be released on Tuesday morning. Cramer hopes to see a meaningful slowdown in inflation. He warns that if prices remain high, it may prompt Federal Reserve Chairman Kevin Warsh to raise interest rates again. The Federal Reserve raised interest rates for the first time in three years in September.
After the market closes, neocloud's CoreWeave will release its financial report, which could be one of the most important earnings announcements of the week. Cramer indicates that this heavily indebted neocloud needs to explain how it plans to finance its expansion and how it will manage its borrowing costs.
Wednesday
Corteva will announce its financial results on a relatively quiet trading day. Cramer said that this agrochemical company has significantly lost the favor of investors, and he wants to better understand what is dragging down its stock price.
Thursday
Nebius Another highly anticipated neocloud will release its financial report before the market opens, which will be another major test for the AI infrastructure transactions following the results of CoreWeave. Cramer said that investors will be looking at strong new orders, completed data centers, and a sufficient reserve of future projects. "What I don't want to hear is about delays in project deliveries and cost overruns on the projects they are building," he said.
Cisco Systems will also announce its financial results on Thursday evening. He said that this network equipment provider may have been oversold, but he will not make a purchase until he sees the market reaction after CoreWeave and Nebius are released.
Applied Materials will also announce its financial results. Although the stock price of this semiconductor equipment manufacturer has fallen significantly from its peak, Cramer reminds that a significant decline alone does not make a stock attractive. “Remember, we don’t care where a stock comes from. We only care where it is going,” he said.
Kraft Heinz will hold an investor meeting on Thursday. Cramer remains optimistic about the CEO Steve Cahillane's ability to deliver shareholder value and mentions his past performance at Kellogg.
Friday
The Producer Price Index will be released on Friday, providing another important indicator of inflation.
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