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Monday is closed, but Tuesday's opening bell brings the earnings shock that could flip the entire market. Stay tuned for Kramer's bold prediction on which sector will dominate and the one stock Trump might destroy. And you turned out to be making a lot of money. Just make sure though it had the tra it was called nuclear power or space travel or quantum computing or crypto.
As long as that in the title, it made you money. Once again, the averages tell you none of this. Dow dipping 83 points, S&P sliding 0.06% and the NASDAQ inching down 006%. The indices just percolate along again punctuated by bursts of small cap buying. So what will next week bring? Well, why don't we go to our game plan to find out?
Now Monday is Martin Luther King Day. Okay, that's a day dedicated to service. Everything's closed. But Tuesday, we're right back in the earning soup. Dr. Horton, the giant home builder, puts its numbers up. And so far the home builders I I look to call them disappointing is too positive. That's the bad news though.
The good news is that we're beginning to see green shoots in the housing sector. Pricing has come down. Mortgage rates have come down. There's even talk about allowing you to use your 401k to buy a home without pen paying any kind of penalty. All right, that's up to the president. Uh we'll see how serious he is about this potentially groundbreaking plan.
It would certainly send the stock of Dr. Horton much higher along with the rest of the homebuilders. 3M also reports and this conglomerate has been quietly surprising people lately. CEO Bill Brown, formerly of L3 Harris, has been putting his stamp on the company ever since he took over CEO about two years ago.
Known as a vicious competitor, he's made the company far more nimble. I like 3M ahead of the quarter. I like Bill Brown ahead ahead of many other CEOs. After the close, we get results from Netflix. I expect a treatise on why the company needs Warner Brothers Discovery, the object of his affection, and is willing to pay a fortune to get it.
How big a fortune will it be? I think that's going to be determined by opponent Paramount Sky Dance, which also wants the property. If Paramount, by the way, would just pay $34. This whole saga would end next. I'm a big believer in the travel theme. From the end of CO until today, I think it has never left us.
Remember what I always say that we are long on money and short on time which is why I would buy United Airlines ahead of the quarter along with Delta, American Express, Booking Holdings and Marriott. Those are what I'm going to start talking next week and we call the big five travel. They tend to trade all together and they are all terrific.
Wednesday morning brings two stocks that are hard to keep down. Johnson and Johnson and Charles Schwab. J&J's become a pure play on pharma by spinning off its orthopedics division. That's smart because orthopedics happens to be a commoditized business. Meanwhile, its pharma business has some of the best drugs in the pipe and they really shine without the knee, hip, and joint business holding them back.
J&J still has a talc overhang of people willing to sue the company for all sorts of cancers allegedly caused by asbestous and their own baby powder. Now, I'm not saying these lawsuits don't matter. That would be heartless. I am saying that they no longer matter to the stock now that J&J is fighting each individual claim which can be daunting to the plaintist bar.
I was intimidated by the lawsuits myself and sold it for the investing club. That was wrong. I regret listening to the Cersei sirens. How about Charles Schwab? All right. This has become the repository of a big chunk of gigantic pool of money that's flowing in from baby boomers to the alphabet generations said to be something like a hundred trillion dollars.
That's a wall of money that I discuss in how to make money in any market. I think Morgan Stanley through Erade, what good quarter by the way, yesterday. Robin Hood and Schwab are the three biggest beneficiaries of my aging generation. Thursday morning, we get the latest reading from the PCE price index.
Now, that's a key inflation gauge, and I think it'll show a restrained set of numbers. We will have to endure endless Fed commentary. Save it. Trump's going to pick someone to be Fed chair who will ram through cuts. That's all you need to know. Proctor and Gamble reports on Thursday. Now, listen to me.
I don't expect any fireworks or anything really good out of the company that's had to pre-announce a number of negative factors ahead of the quarter. So why the heck do we own Proctor for the Charitable Trust? Because it has a new CEO because everyone knows the brands are tremendous. Most of all because the stocks down so much that I know it can bounce especially with that near 3% yield.
I'll explain more after the quarter when we hold our monthly investing club for the conference uh for the club. This is Thursday at noon. We do a club call every single month. I don't want you to miss it. I think we do more teaching in that than we do anywhere else. Another Kramer fave, GE Aerospace, also reports that morning.
And given all the backlog of planes, I can't imagine it will be anything other than spectacular. And I don't think that spectacular is too positive a word for a company that's captain by the great Larry Culp. I don't know if you saw him. We were up at Harvard Business School. I think he's tremendous.
Now, we know copper and gold have been redhot. So, I have to believe that Freeport McMaran, a copper and gold producer, will get its fair share of money coming in. I like golden. I think that even up here it can still be bought. As for copper, it's a little pricey, but it is needed in the data center.
Look, it's it's a twofur. Uh t stock though has tended to go down after reports. After close Intel reports, this stock's been flying ever since Lip Bhutan came in as CEO. Under his leadership, Intel started to reclaim the mantle of America's best semiconductor manufacturer made in America. Of course, given how competitive that world is, Intel's actual earnings may not be big enough after this run.
You know what? Let's give this one a rest. Okay. We also get results from a company we own for the Charable Trust called Capital One Financial. You've probably seen their ads. Capital One's the giant credit card issuer that's got hammered when the president suggested earlier this week a temporary cap on credit card interest rates.
I remember that was last weekend. I I get where he's coming from. Okay. Uh, but if you cap those rates, most Americans simply won't be able to qualify for a credit card. These companies would rather stop lending than just lend at a loss. Remember, it's unsecured debt. I think the president's moved on to the next issue, which is why the banks are rallying again.
Capital One's going up with them. The company has plenty of cash. I hope it'll talk about its humongous buyback on its conference call. We also want a game plan about what it's going to do with its Discover credit card network. That could be gigantic, but it hasn't told us enough yet. What else? I think that the loan surprise blowout next week will come from Intuitive Surgical, which had a monster quarter last time.
But I bet that the numbers still aren't high enough. That means that the estimates can go higher. One day, these upside surprises will come to an end, I think, because competition from Metronic may matter. Even J&J wants in this, not yet. The food stocks have been miserable, but one that still has a premium multiple because of its impressive growth from yesterday is McCormack.
We're going to Well, you know what? We have to see if that can stick. Now, I like this stock before when the growth was from overseas. I frankly don't know if it's capable of really beating the numbers anymore, though. The package food business, I'm calling it the new coal in this market. Lots of people have been loving SLB of late.
That's the old slumber. Uh they're seeing potential contracts in Venezuela for this oil service company. I just look at the price of crude though below $60 a barrel. I think that it's very hard for S so to deliver special numbers when reports on Friday. So here's the bottom line. It's an awfully odd week.
This second week of earning season as light as the next week is heavy except for a couple cases. I think it's best to keep your pat on your shoulder and hope for a better set of pitches. Let's go to Jerry in Missouri, please. Jerry, take my call. Thank you, Jerry. Jim, this stock's shares are extremely volatile and have had over 60 moves, greater than 5% over the last year.
The company's PE is currently over a hundred. I did take some profits three days ago after Evacore initiated coverage with a $320 price target, but then yesterday it dropped 10% after a report from RBC regarding its advertising. I'm still up over 50% overall. [snorts] Should I be worried about Reddit?
Holy cow. You know what? I I was trying to figure which one, which one, which one? Because I've been watching this and he's like a jumping beat and it worries me that it's go so erratic. It's almost like there's not enough float. But I'll tell you the truth in how to make money in any market. I go over a couple of stocks that I think could be future winners.
And I include Reddit. So, I'm not backing down. I like the company Reddit right here. Let's go to Larry in California. Larry, Reverend Jim Bob from the church of what's happening now. That's the way the late Mark Haynes used to introduce you in the 90s and I've been listening to you ever since. Thank you.
And I miss I miss him. That's what it was. Reverend Jim Bob, what's happening? Jim, my stock is Lamb Research. Um, this stock has gone parabolic since September from the low 90s all the way up to over 220. Yes. Is it there more room to for this stock to go or we reach the top? Do you know that that's got one great CEO and Tim Archer and I am concerned Tim was so Scott he was so good when I sat down with him and he came on the show he told a great story I I'm not going to be against it I actually think that you can buy some but the market's very overbought by the oscillator that I use the S&P if you want a 100 shares you buy 25 but then you must wait for it to come down I can't count and it's continuing to buy a parabolic move even for the best of the best and that is the best of the
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