Cramer Anticipates Another Strong Week Of Trading Ahead, But That Hinges On...

Zinger Key Points
  • Analysts have been sounding out the kicking in of the Santa Claus rally, which is typical of the year-end.
  • For the rally to materialize, economic data should be benign, Jim Cramer says.

Stocks could be in for another week of strong performances, contingent on one condition, CNBC’s “Mad Money” host Jim Cramer said Friday.

What Happened: As the year-end approaches, the focus will shift more toward the holidays, but economic conditions will call the shots, Cramer said. If the job market continues its strength and inflation remains tame, the market could be in for one more “very good” week, he said.

Among the upcoming data points, the stock picker said he would focus on the November producer price inflation report and the University of Michigan’s consumer sentiment index, both due next week. That said, sentiment might be too cold, he added.

“Right about now, we need a boost, a big boost, if only to save Christmas for retail,” Cramer said.

Among the key earnings reports the CNBC host will watch in the week ahead include the ones from auto parts retailer AutoZone, Inc. AZO, luxury homebuilder Toll Brothers, Inc. TOL and security software provider SentinelOne, Inc. S.

See also: Best Penny Stocks

Why It’s Important: The year 2022 proved to be a disappointing one for traders as stocks sold off amid slowing economic growth, inflationary pressure and interest rate worries.

Given the oversold nature and the typical year-end buying, traders now hope for a strong finish to the year that would help claw back some of the losses.

The major averages recorded their second weekly gains in the week ended Dec. 2, as the Federal Reserve began telegraphing a less hawkish tone, giving rise to hopes for a slowdown in the pace of rate increases.

The S&P 500 Index closed the week ended Dec. 2 at 4,071.70, a weekly gain of 1.13%, on top of the 1.53% advance in the week ended Nov. 25. The tech-heavy Nasdaq Composite rose 1.56% to 11,461.50 after gaining 0.72% the previous week.

The 30-stock Dow Industrials gained a marginal 0.24% for the week before settling at 34,429.88. In the previous week, the index outperformed with a steeper 1.78% advance.

The SPDR S&P 500 ETF Trust SPY, an exchange-traded fund that tracks the performance of the S&P 500 Index, ended Friday at $406.91, a daily decline of 0.12%, according to Benzinga Pro.

See also: S&P 500 Breaks Above Key Technical Level: Why This Analyst Is Rooting For Strong Gains Ahead

Market News and Data brought to you by Benzinga APIs
Posted In: PreviewsMarketsTrading IdeasJim Cramer
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!