Earnings season is finally beginning to wind down, Jim Cramer told his Mad Money viewers Friday. That means the only thing we have left to fear about October, is Halloween. The averages were able to rally to new highs Friday, even as Apple (AAPL) - Get Apple Inc. (AAPL) Report, Amazon (AMZN) - Get Amazon.com, Inc. Report and Starbucks (SBUX) - Get Starbucks Corporation Report all disappointed on earnings. That bodes well for next week's action.
Cramer's game plan for next week begins, as it often does, on Monday, this time with earnings from On Semiconductor (ON) - Get ON Semiconductor Corporation Report, NXP Semiconductor (NXPI) - Get NXP Semiconductors NV Report, Diamondback Energy (FANG) - Get Diamondback Energy, Inc. Report and Clorox (CLX) - Get Clorox Company Report. Cramer took a wait-and-see approach to the semis, but was bullish on Diamondback, along with Devon Energy (DVN) - Get Devon Energy Corporation Report, which reports on Tuesday, followed by Pioneer Natural Resources (PXD) - Get Pioneer Natural Resources Company Report on Wednesday.
On Tuesday, we'll hear from Estee Lauder (EL) - Get Estee Lauder Companies Inc. Class A Report and DuPont (DD) - Get DuPont de Nemours, Inc. Report, both of which have low expectations, along with oil giant BP (BP) - Get BP p.l.c. Sponsored ADR Report, Pfizer (PFE) - Get Pfizer Inc. Report and Zillow (Z) - Get Zillow Group, Inc. Class C Report, all of which he felt were "complicated". He was bullish on T-Mobile (TMUS) - Get T-Mobile US, Inc. Report.
Wednesday brings more earnings, including CVS Health (CVS) - Get CVS Health Corporation Report Humana (HUM) - Get Humana Inc. (HUM) Report, Wynn Resorts (WYNN) - Get Wynn Resorts, Limited (WYNN) Report and Etsy (ETSY) - Get Etsy, Inc. Report, all of which were on Cramer's bull list.
Then on Thursday, it will be Uber (UBER) - Get Uber Technologies, Inc. Report, Skyworks Solutions (SWKS) - Get Skyworks Solutions, Inc. Report, Peloton (PTON) - Get Peloton Interactive, Inc. Class A Report and Square (SQ) - Get Square, Inc. Class A Report in the spotlight. Cramer feared all four might disappoint this quarter.
Am I Diversified?
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.
The first portfolio included Alphabet (GOOGL) - Get Alphabet Inc. Class A Report, Nvidia NVDA, Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report, Costco (COST) - Get Costco Wholesale Corporation Report and UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated Report. Cramer said this portfolio included a lot of tech, but ultimately decided that Google, Microsoft and Nvidia can all coexist in the same portfolio, as they're in different parts of tech and don't trade together.
The second portfolio's top holdings included PNC Financial (PNCF) , Microsoft MSFT, Target (TGT) - Get Target Corporation Report, Lowes (LOW) - Get Lowe's Companies, Inc. (LOW) Report and UPS (UPS) - Get United Parcel Service, Inc. Class B Report. Cramer said Target and Lowes have too much overlap. He suggested swapping Target in favor of a healthcare stock like UnitedHealth.
With all of the earnings happening this week, you might have totally missed the GlobalFoundries (GFS) - Get GlobalFoundries Inc. Report IPO. That's why in his "Know Your IPO" segment, Cramer circled back to this offering, which it turns out, was the third largest IPO of the year. Shares of GlobalFoundries are up 5% over the past two days.
The lack of attention that was given to GlobalFoundries is shocking given we're in the middle of a massive, worldwide semiconductor shortage. The semi foundry business only has five major players, and GlobalFoundries is one of them. Best of all, the company makes many of its chips in upstate New York.
Historically, GlobalFoundries hasn't been a great business. But that all changed this year as the "full featured" chips the company makes went into short supply. GlobalFoundries has chips for phones and mobile devices, PCs, industrial applications and communications, which has lead to revenue growth of 55% so far this year.
Cramer said the chip shortage is likely to be with us a lot longer than many people think, which makes GlobalFoundries a solid buy, even though it is a weaker player when compared to Taiwan Semiconductor and Samsung.
Executive Decision: Dow
In his "Executive Decision" segment, Cramer spoke with Jim Fitterling, chairman and CEO of Dow (DOW) - Get Dow, Inc. Report, to learn more about the chemical maker's environmental initiatives, including its plan to become carbon net zero by 2050.
Fitterling said Dow operates with dual mandates, answering to both shareholders and the planet. That's why the company is building a new factory in Alberta, Canada that will use the byproducts of its plastic production to make hydrogen that will in turn, power the entire facility. Dow currently sources 25% of its power from renewable sources, and this new facility will take it even closer to its net-zero goals.
Dow is also working closely with customers like Ralph Lauren (RL) - Get Ralph Lauren Corporation Class A Report to create new fabric dyes that use 90% less chemicals and 50% less water and energy to make the clothes that we all love.
When asked why Dow chose Canada, rather than the U.S., for its new facility, Fitterling explained that the U.S. lacks the support and infrastructure necessary. Alberta, he said, has pricing and allowances for carbon, as well as carbon capture technologies already in place.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Friday evening:
No Huddle Offense
In his "No Huddle Offense" segment, Cramer opined on Apple's supply chain constraints, and the analysts that pounced on the shortfall. He said Apple reported a gigantic quarter and the company deserves our trust and missed sales from supply constraints are only delayed and not lost.
But there's no point in dodging a bullet that's not coming, Cramer explained. Stanley Black & Decker (SWK) - Get Stanley Black & Decker, Inc. Report has $800 million worth of product stuck on boats. Steelmaker Nucor (NUE) - Get Nucor Corporation Report is waiting for autos and appliances to come back online. And Brunswick (BC) - Get Brunswick Corporation Report is trying to make as many boats as quickly as possible. In all of these cases, their products will be sold. We just need to be patient, give it time, and give the companies the benefit of the doubt, according to Cramer.
Over on Action Alerts PLUS, Chris Versace and Bob Lang say 'What are woes for Intel (INTC) - Get Intel Corporation (INTC) Report are a bountiful harvest for Nvidia (NVDA) - Get NVIDIA Corporation Report and others. Yes, the big institutions are still coming after this chip name; money flow shows that to be the case.' Read more of their investing insights and trading strategies on Action Alerts PLUS.
To sign up for TheStreet's free Daily Booyah! newsletter with all of the latest articles and videos please click here.