Cramer says these 6 ‘positives’ could boost stocks in reporting season

CNBC’s Jim Cramer on Monday said several factors could help stocks rise, even during what could be an ugly reporting season.

A new reporting season kicks off Tuesday with some of the biggest names in tech, retail and consumer products. Companies such as Microsoft, IBM and ServiceNow should report their quarterly financial results this week.

According to Cramer, here are six factors that can help stocks when companies report earnings:

1. More and more firms are laying off. Companies including Microsoft, sales department and Wafer recently announced a staff cut and their stock has skyrocketed.
2. The US dollar and interest rates peaked last fall. Cyclical, more economically sensitive stocks have since rebounded as many companies spend most of their business overseas.
3. The Federal Reserve is almost done raising interest rates. This is according to Wall Street Journal reportand could mean that bad-credit problems and the possible resulting damage to banks could be brought to an end.
4. The Chinese economy is recovering. The return of the world’s second largest economy is great news for companies, especially in the entertainment, travel and consumer goods industries.
5. The government is ready to invest heavily in infrastructure. The money from the bipartisan Infrastructure Bill and the Inflation Reduction Act provide a “safety net” for companies that build roads, bridges or tunnels.
6. Analysts update stocks of chips. Barclays went up on Monday Advanced microdevices and Qualcomm to overweight. “Remember [semiconductor chips] The inventory surplus included everything from mobile phones to desktops and high-end computers. This is a very big deal,” Kremer said.

Cramer warned that while the reporting season still may not be smooth, any dips in stock prices are not necessarily undesirable.

“At the time of the first press, when we see the numbers, I still expect to see some sharp drop. Difference from 2022? These drops can be bought,” he said.

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