Jim Cramer says these 6 ‘positives’ could help lift stocks during earnings season

CNBC’s Jim Cramer said Monday that several elements could help propel stocks higher, even during a poor earnings season.

tuesday has begun a new earning season Featuring some of the biggest companies in tech, retail and consumer goods. companies like Microsoft, IBM And service now is set to report its quarterly financial results this week.

According to Cramer, here are six factors that could help stocks as companies report earnings:

1. More companies are implementing layoffs. companies including Microsoft, sales force And wayfair Recently announced workforce reductions, and their shares soared.
2. The US dollar and interest rates peaked last fall. Cyclical, more economically sensitive stocks have sprung up, as many companies conduct a substantial portion of their business overseas.
3. The Federal Reserve is about to increase interest rates. that is according to a Wall Street Journal reportAnd it could mean that the bad loan worries – and the potential damage to banks – may be coming to an end.
4. China’s economy is reopening. The return of the world’s second largest economy is good news for companies, especially those in entertainment, travel and consumer goods.
5. The government is ready to spend big on infrastructure. Cash from the bipartisan infrastructure bill and the Inflation Reduction Act provides a “safety net” for companies that build roads, bridges or tunnels.
6. Analysts are upgrading Chip stock. barclays updated on monday Advanced Micro Devices And Qualcomm being overweight “Remember [semiconductor chips] The glut of inventory included everything from cellphones to desktops to high-performance computers. It’s a huge deal,” Cramer said.

Cramer cautioned that while earnings season may still not be smooth, any drop in the stock’s price isn’t necessarily unwanted.

“At the time of first print, when we look at the numbers, I still expect to see some vicious declines. Difference from 2022? Those declines, they could be buyable,” he said.

Disclaimer: Cramer’s charitable trust owns shares of Advanced Micro Devices, Qualcomm, Salesforce, and Microsoft.