Earnings from Tesla, Merck and Big Tech

CNBC’s Jim Cramer noted Friday that major quarterly results from players like Verizon, Meta, Microsoft And Alphabet will take place next week, but he emphasized the importance of the personal consumption expenditure index because it is the true indicator of inflation.

Cramer said the Federal Reserve prefers to use the PCE index, not the Consumer Price Index, to better gauge inflation. If the numbers are too hot, Cramer said the market’s gains could prove short-lived. But if the number is cool, it could give a boost to most stocks.

He warned that even if the market was oversold next week, Friday’s PCE index report would be where the rubber truly meets the road.

Monday, Verizon will publish its quarterly results before the market opens, and two steel companies, Nucor And Cleveland Cliffs, will report after closing. Cramer said the latter companies could be strong, noting that Nucor in particular performed well during the aggressive rate tightening.

Companies like General manager, GE Aerospace And Spotify report Tuesday, but Cramer said You’re here is the one to watch out for that day. He said the electric vehicle maker had a tough quarter and raised concerns about the company’s weak sales, as well as the possibility of a substantial decline in cash flow.

The fun doesn’t stop there, as struggling aircraft maker Boeing reports earnings Wednesday morning and social media giant Meta will report results after the bell. Cramer said analysts largely agree that Meta will report rosy numbers, meaning CEO Mark Zuckerberg, unlike Tesla CEO Elon Musk, won’t have to pull a rabbit out of a hat.

THURSDAY, caterpillar, Merck and tech giants Microsoft and Alphabet will report their results. Because Alphabet’s business model is based on advertising, Cramer warned that the company tends to perform poorly at earnings time, although it might have a bright spot due to its developments in artificial intelligence .

Oil companies Exxon Mobile And Chevron report Friday.

It’s going to be a busy week, and Cramer says to be wary of the market and pay close attention to the PCE index report.