CNBC’s Jim Cramer believes next week’s earnings reports will offer a glimpse into how companies are coping with President Trump’s tariffs, which have been crushing global stocks for two consecutive days. Big banks JPMorgan Chase, Wells Fargo, and Morgan Stanley report results on Friday, April 11, while the consumer price index report will be released on Thursday.
The market direction will depend on President Trump’s next move regarding tariffs. If relief is granted to trading partners, the market rout could end soon. However, if Trump remains intransigent, the situation could worsen like it did on Black Monday in 1987.
Retailer Levi Strauss, which has been hit hard by tariffs, may beat expectations despite previous poor guidance. On the other hand, apparel company PVH posted positive earnings results and might influence Levi Strauss’ performance.
Earnings reports from drugstore chain Walgreens and egg producer Cal-Maine Foods will provide insight into inflation and potential price spikes. Delta Air Lines’ quarterly results on Wednesday will also shed light on the travel industry’s health. Alcoholic beverage giant Constellation Brands may face headwinds due to tariffs on Mexico.
Used-vehicle retailer CarMax’ earnings report on Thursday might not be as promising, given the potential recession’s impact on the stock. The Bureau of Labor Statistics’ consumer price index report will also reveal inflation numbers, which could affect interest rates in May.
In a call, Cramer emphasized that the only hope for the market is if President Trump comes up with something to turn it around from bear to bull. Big banks may beat expectations but could still be punished by souring economic expectations due to tariffs.
Source: https://www.cnbc.com/2025/04/04/cramers-week-ahead-banks-kick-off-critical-earnings-season.html