Jim Cramer, the well-known host of CNBC’s ‘Mad Money,’ has outlined his top 10 things to watch in the stock market this Tuesday. Investors are keenly observing these factors as they navigate the volatile market landscape.

Key Takeaways

• June Inflation Report: The Consumer Price Index (CPI) for June showed a 0.1% decrease month-over-month, contrary to the expected 0.1% increase. This has provided some optimism for investors hoping for a Federal Reserve rate cut.
• Delta Air Lines Earnings: Delta Air Lines missed its second-quarter earnings estimates, causing its stock to drop in pre-market trading. Despite a rise in summer travel bookings, the airline’s profits are under pressure.
• PepsiCo Earnings: PepsiCo reported mixed second-quarter earnings, with adjusted earnings surpassing expectations but revenue falling short. The company cited declining demand for drinks and snacks as a contributing factor.

June Inflation Report

The June Consumer Price Index (CPI) report revealed a 0.1% decrease in inflation month-over-month, defying economists’ expectations of a 0.1% increase. This unexpected drop has fueled investor optimism, as many are hopeful that the Federal Reserve might consider cutting interest rates sooner rather than later. The core CPI, which excludes volatile food and energy prices, also showed signs of moderation both on a monthly and annual basis.

Delta Air Lines Earnings

Delta Air Lines experienced a significant drop in its stock price during pre-market trading after missing its second-quarter earnings estimates. The airline’s profits are under pressure despite an increase in summer travel bookings. Delta’s CEO, Ed Bastian, acknowledged that while summer travel demand remains healthy, there are challenges in the domestic market, particularly in the lower fare segments.

PepsiCo Earnings

PepsiCo’s second-quarter earnings report was a mixed bag. While the company managed to exceed adjusted earnings expectations, it fell short on revenue projections. The decline in demand for drinks and snacks, coupled with the impact of product recalls, contributed to the revenue shortfall. PepsiCo’s North American performance was particularly subdued, with Quaker Foods experiencing a 17% decline in volume.

Conclusion

As investors digest these key developments, they will be closely monitoring how these factors influence the broader market. Jim Cramer’s insights provide a valuable roadmap for navigating the complexities of the current financial landscape.

Sources

• June inflation, Delta Air Lines, PepsiCo earnings: 3 Things
• Jim Cramer’s top 10 things to watch in the stock market Tuesday

Sources

• June inflation, Delta Air Lines, PepsiCo earnings: 3 Things, Yahoo Finance.