Big Tech Earnings & Fed Rate Hike Impact
CNBC’s Jim Cramer alerted investors on Friday that next week will be a consequential one for Wall Street, pointing to a heavy load of quarterly earnings and a Federal Reserve meeting.
“Make no mistake,next week matters,” Cramer said. He later added, “The bottom line? Mag Sevens. momentum pays. Red-hot industrials, and a Fed meeting. All in front of you. Keep yoru head up, [there’s] much more to come.”
Monday brings earnings from steel manufacturer Nucor, which Cramer described as the “best steel company in the world.” Despite Nucor sharing a lackluster mid-quarter update in December, the stock has nevertheless rallied since then, in part because investors hope rate cuts will help spur economic growth. If Nucor gets hit following the release Monday, Cramer said investors should consider buying into the weakness.
On Tuesday, Boeing and General Motors will release results.
Boeing shares have rallied substantially over the past two months, so Cramer believes investors shouldn’t expect another huge leg up after the report. Don’t sell the stock just yet though, he said, because it’s only year one of the aircraft maker’s turnaround story. Meanwhile, Cramer said General Motors CEO Mary Barra hasn’t received enough credit for all she’s done to revamp the company. If the stock gets dinged on earnings day, Cramer said it could be a solid time to buy.
Wednesday is an especially busy earnings day. Corning
Apple Stock and Jim Cramer’s Outlook
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As of January 24, 2024, Apple (AAPL) stock has experienced eight consecutive weeks of decline, influenced by concerns regarding rising memory costs and their potential impact on profit margins. Despite this downturn, CNBC’s Jim Cramer maintains his “own it, don’t trade it” advice for the stock.
Apple’s stock closed at $188.46 on January 23, 2024, a decrease from its previous highs. Yahoo Finance provides current stock data and past performance.
federal Reserve Interest Rate Decision
The Federal Reserve is scheduled to announce its latest interest rate decision on Wednesday, January 31, 2024. The consensus expectation is for the central bank to hold rates steady.
According to the CME Group’s FedWatch tool, as of January 24, 2024, the probability of the federal funds rate remaining in the 5.25%-5.50% range after the January 30-31 meeting is 96.8%. CME Group fedwatch Tool provides real-time analysis of market expectations for Fed policy.
Federal Reserve Policy Tools
The Federal Reserve utilizes several tools to influence monetary policy, including the federal funds rate, reserve requirements, and open market operations. The Federal Reserve Board details these tools on its website.
Potential Announcement Regarding Fed Chair Jerome powell
Jim Cramer has suggested a possibility that President Donald Trump may announce a replacement for Federal reserve Chair Jerome Powell on Wednesday, January 31, 2024, and believes this announcement could have a greater market impact than the interest rate decision itself.
Jerome Powell was nominated by president Trump and confirmed by the Senate in 2018. The Federal Reserve Board provides biographical information on its leaders, including Jerome Powell.
Jerome Powell’s Tenure
Jerome Powell began his term as Chair of the Federal Reserve on February 5, 2018. He was re-nominated by President Biden and confirmed for a second term in 2022. The White House issued a statement regarding his re-nomination.