Volatile Week Ahead for Stocks as Earnings and Election Loom

Strategic Insights -

As the US presidential election approaches, Jim Cramer warned his Mad Money viewers to proceed with caution as the week ahead promises to be volatile for stocks, with a gauntlet of earnings reports to navigate.

Cramer's earnings preview kicked off on Monday with reports from elevator maker Otis, NXP Semiconductor, and Twilio, with Otis expected to rise on hopes of a Biden victory. On Tuesday, major healthcare stocks Pfizer and Merck will release earnings, as will Caterpillar, Microsoft, and Stanley Black & Decker. Cramer was eager to hear updates on Pfizer's COVID vaccine and was bullish on Microsoft and Black & Decker.

Key Takeaways:

  • Cramer expects a volatile week ahead for stocks with earnings reports and the US presidential election looming.
  • Otis, a maker of elevators, is expected to rise on hopes of a Biden victory.
  • NXP Semiconductor, a leading manufacturer of semiconductors for the automotive industry, will provide insights into the state of the auto market.
  • Cramer is bullish on Microsoft and Stanley Black & Decker, but cautious on Caterpillar.
  • Major healthcare stocks, including Pfizer and Merck, will release earnings reports on Tuesday.
  • The COVID-19 index, created by Cramer on April 24, is up 45% since its inception, outperforming the Nasdaq and Dow Jones Industrial Average.
  • The top 10 performers in Cramer's COVID-19 index include Cloudflare, Fastly, Trade Desk, and Zoom Video Communications, among others.

Statistics:

  • The COVID-19 index, created by Cramer, is up 45% since its inception.
  • The top 10 performers in Cramer's COVID-19 index include:

+ Cloudflare: up 146%

+ Fastly: up 118%

+ Trade Desk: up 112%

+ DataDog: up 102%

+ Twilio: up 96%

+ Zoom Video Communications: up 94%

+ Square: up 84%

+ Peloton: up 280%

  • Peloton's 280% rise is notable, despite a recent downgrade.

Sources:

  • "Mad Money" segment, TheStreet.com, November [no date provided]
  • Action Alerts PLUS, TheStreet.com
  • COVID-19 index, created by Cramer on April 24, 2020
  • TheStreet.com
  • Real Money, TheStreet.com, November [no date provided]