CNBC commentator Jim Cramer said Wall Street could be in for a relatively quiet week, with September — historically a difficult month for equities — so far offering only a limited lineup of major corporate events. In his view, the calendar includes just a handful of earnings reports and company events likely to shape investor sentiment.
Cramer said September is typically a harsh month for the stock market. So far, he added, the month has been “okay, not great,” and investors are hoping for a more subdued stretch over the next couple of weeks.
Markets came under pressure last week after the U.S. Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday. The Dow Jones Industrial Average fell 1.7% for the week as policymakers signaled that further tightening may still be ahead. The S&P 500 slipped 0.1%, while the tech-heavy Nasdaq Composite rose 0.7% as investors returned to the AI trade after an early-week sell-off.
For the week ahead, Cramer said the most important corporate event will be Okta’s analyst meeting on Wednesday. He said he came away more impressed with the company after speaking this week with Okta CEO Todd McKinnon at Salesforce’s Dreamforce conference. According to Cramer, McKinnon explained how Okta’s identity-security technology could be extended to AI agents, making it possible to identify individual agents and track their activity, potentially helping stop malicious AI systems.
Before that, homebuilder KB Home is due to report on Tuesday. Cramer expects the results to reinforce the challenges facing the housing sector in a higher-rate environment, echoing the concerns investors heard earlier from Lennar.
Wednesday will also bring results from uniform rental provider Cintas and payroll services company Paychex. Cramer said both companies are entering earnings with momentum because the small and medium-sized business segment remains resilient and has historically been able to withstand the early stages of monetary tightening.
General Mills is also scheduled to report on Wednesday, but Cramer remains cautious on the packaged-food company. He cited higher input costs, the growing use of GLP-1 weight-loss drugs and pressure on processed foods as headwinds for the business. For that reason, he said he cannot recommend the stock.
Darden Restaurants will report on Thursday. Cramer said the Olive Garden parent could move higher thanks to solid execution, though he still prefers Brinker International, arguing that the Chili’s owner offers a stronger growth outlook.
Costco will round out the week with earnings due after Thursday’s closing bell. Cramer said the stock has been under pressure recently, and he will be listening for signs that the retailer may be having trouble retaining younger members. He also disclosed that Cramer’s Charitable Trust, the portfolio run by CNBC’s Investing Club, owns Costco shares.
