The corporate earnings season is under way, and CNBC’s Jim Cramer thinks the early reports from major banks all have something in common: they indicate consumer spending could soon surge.
“I think we’re at an inflection point where consumer spending can truly ramp up and ramp to a totally unexpected positive level, especially with millions of parents getting their child tax credit [checks] just this week,” he said on “Mad Money.”
JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo all beat Wall Street estimates. Bank of America posted better-than-expected earnings, but it came up short on the revenue line.
“Americans are in fabulous financial shape right now, which means we’re gonna spend a lot of money when we climb out of our Covid foxholes,” he added. “Prepare your portfolio accordingly.”
Cramer named the following stocks as his picks to play a potential consumer spending boom:
- Delta, down 22% from April highs
- American Airlines, down 21% from March highs
- American Express, down 1% from peak last week
- Poshmark, down 27% from June highs
- Brunswick, down 17% from May highs
- Best Buy, down more than 14% from May highs
- Costco, down 1% from Monday peak
- Williams-Sonoma, down 17% from May highs
- RH, down 7% from April highs
- Apple, closed Wednesday at record
- T-Mobile, closed Wednesday at record
- Qualcomm, down 14% from January highs
- Broadcom, down 3% from February highs
- Skyworks Solutions, down 6% from April highs
Disclosure: Cramer’s charitable trust owns shares of Broadcom and Costco.
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Source: Business - cnbc.com
