Cramer's week ahead: Earnings from Nvidia, Dell, Costco and Salesforce

Jim Cramer highlighted Nvidia, Costco, Dell, and Salesforce earnings as potential market movers next week, while also warning of market volatility stemming from President Trump's trade-related pronouncements. Cramer is bullish on AutoZone and expects a strong quarter from Okta, while expressing skepticism about Macy's and Dick's Sporting Goods. He suggests caution with Costco ahead of earnings, and notes potential upside for Gap and Ulta, while highlighting Dell and Marvell as integral to the data center; the personal consumption expenditures report will also be a key economic indicator.

Analysis

The upcoming week on Wall Street is anticipated to be characterized by notable volatility, primarily influenced by key corporate earnings and potential presidential pronouncements regarding trade policy, a factor contributing to a 'mixed' overall market sentiment (score -0.05) and a 'cautious' tone. Significant earnings reports from Nvidia (NVDA), Costco (COST), Dell (DELL), and Salesforce (CRM) are expected to be sectoral and market-wide catalysts. AutoZone (AZO), with a positive sentiment (0.6) and ongoing aggressive buybacks, is viewed as a buy-on-dips opportunity. Cybersecurity firm Okta (OKTA) is expected to deliver a strong quarter, reflected in its positive sentiment (0.7). Conversely, retailers like Macy's (M), labeled a 'chronically underperforming department store chain' (sentiment -0.8), and Dick's Sporting Goods (DKS), facing skepticism over its Foot Locker acquisition plan (sentiment -0.7), present a more cautious outlook. For Nvidia (sentiment 0.4), attention will be on its expanding software division as a potential driver for upside. Salesforce (sentiment -0.4) faces uncertainty regarding its AI platform's revenue impact and renewed M&A speculation involving Informatica, which previously unsettled investors. Costco (sentiment -0.2), despite consistent earnings, historically sees its stock dip post-results. Dell (sentiment 0.7) and Zscaler (ZS, sentiment 0.7) are viewed positively, with Dell expected to report strong results tied to data center demand, and Zscaler having a track record of upside surprises. Marvell Technology (MRVL, sentiment 0.2) is also a key data center player, though some market speculation anticipates disappointment. The release of the Personal Consumption Expenditures (PCE) report will be a critical inflation indicator, with concerns that new tariffs could impede the desired cooling of inflation.

Key Decisions for Investors

• Investors should brace for heightened market volatility driven by both earnings releases and potential geopolitical trade announcements, necessitating a cautious and selective approach.
• Consider accumulating positions in AutoZone (AZO) on any price weakness given its strong performance and buyback program, and monitor Okta (OKTA), Dell (DELL), and Zscaler (ZS) for potentially strong earnings reports and continued positive momentum.
• Exercise caution with Macy's (M) and Dick's Sporting Goods (DKS) due to fundamental concerns and controversial strategic moves; for Costco (COST), it may be prudent to await a potential post-earnings dip before considering entry.
• Closely watch Nvidia's (NVDA) earnings for insights into its software segment growth and Salesforce's (CRM) report for clarity on its AI strategy and any M&A developments, given the current market uncertainty surrounding these names.
• Monitor the upcoming Personal Consumption Expenditures (PCE) report, as inflation trends, particularly in light of potential new tariffs, will significantly influence market sentiment and Federal Reserve policy expectations.