CPI, retail earnings spotlight consumer spending

CNBC’s Jim Cramer on Friday laid out what to look for going into next week, highlighting earnings reports from several retail outfits as well as the latest consumer price index. He said a market rally could continue as long as bond yields don’t start to rise.

“This market’s had a very solid winning streak of late. Remember that it wouldn’t be happening if interest rates were still climbing,” he said. “As long as rates stay calm — that’s the big backdrop that we need — companies that report good news will be rewarded with higher stock prices. But never forget that the bond market still is in control, it’s just that it’s finally turned benign, at least for now.”

This weekend brings a notable event from the American Heart Association, where investors will hear about how the new class of weight loss drugs affects heart disease. Cramer said this may have the potential to reignite stocks that make these medications, like Novo Nordisk and Eli Lilly.

On Monday, Cramer said he would watch how smaller-cap tech stocks can affect larger ones as Monday.com reports. Cramer said the Israeli company’s results could prompt reactions from enterprise software outfits like Salesforce and ServiceNow, as well as consulting firm Accenture. Tuesday brings the latest consumer price index, and Cramer expressed optimism the figures would be “surprisingly cool.” Home Depot reports on Tuesday, and Cramer said to pay close attention to the company’s forecast, and if high mortgage rates are causing homeowners to remodel.

Wednesday will see an aggregate retail sales report, which Cramer expects to be weak. Cramer also highlighted Target, which reports Wednesday before the market opens, calling the stock one of the current worst of the retail bunch. He’ll be watching more retail reports on Thursday, namely Walmart and Macy’s. Cramer said he thinks the former has room to run as consumers search for bargains, while the latter is expected to have weak earnings but could provide some further insight into consumer behavior.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Eli Lilly and Salesforce.