Trade talks and the latest data on U.S. employment will color the week ahead for the stock market, CNBC’s Jim Cramer said Friday as stocks rallied on high hopes for a U.S.-China trade deal at the weekend’s G-20 summit.
President Donald Trump is planning to meet with Chinese President Xi Jinping at the Buenos Aires, Argentina gathering on Saturday to discuss what has amounted to an ever-escalating trade war between the two nations. Next Friday, a Labor Department report on U.S. job creation will bookend what Cramer expects to be an “exciting” week for stocks.
“Between Trump’s meeting with President Xi over the weekend and the employment number on Friday, there’s a whole lot going on next week. Let’s just hope it’s not too exciting,” the “Mad Money” host said.
With Saturday’s market-defining meeting in mind, Cramer turned to his game plan for the week ahead, which includes a key earnings report from Toll Brothers.
Cramer said the high-performing homebuilder’s results would speak to the state of the U.S. economy as told by housing, which is slowing on many measures. As such, Toll Brothers’ earnings report would likely “tell a tale of both strength and weakness,” he said.
“Remember, I’m not saying the economy overall is weak, I’m saying it’s weaker than it’s been, and one of the reasons is the slowing housing market,” Cramer explained. “I bet Toll confirms my view, particularly on the coasts.”