Strong earnings will drive the market higher

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Strong earnings will drive the market higher


Darden: The Olive Garden parent reports earnings Tuesday morning, and Cramer expects a strong report, even after Darden’s disappointment last quarter.

“I think the economy’s doing a little better from last time. People start to emerge from their cocoons and go out to a sit-down dinner again,” Cramer said. “When retail sales are strong, and Costco sure says that things are, restaurants will eventually do better.”

FedEx: A healthy holiday season should bring good tidings for shipping giant FedEx when it reports.

“I say that because last night Adobe, which is the ultimate arbiter of online sales, told us that e-commerce is en fuego,” Cramer said.

Micron: An earnings report from Micron, which makes DRAM chips for storage and flash memory chips for mobile devices, could hold the key to the semiconductor sector, Cramer said.

“[DRAM]’s had very strong pricing, but [flash], however, has not been doing as well,” he said. “If Micron can’t blow away the numbers or if it revises its forecast down at all because of weakness in flash, then the semiconductor stock rally will fizzle.”

Red Hat: Tuesday’s earnings report from Red Hat, which helps companies move their data to the cloud, could also speak volumes to its sector.

“If this one delivers, and … I think it will, then we’re going to have another big move and it’s going to be in Salesforce, it’s going to be in ServiceNow, Adobe again, VMWare [and] Nutanix,” Cramer said.



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