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Stock Market Today With Jim Cramer: Boston Beer and American Express

Boston Beer, the maker of Sam Adams, sinks after a surprise earnings miss.

Stocks were rising Friday as as earnings optimism lifted Wall Street to all-time highs.

Investors will be watching next week's Federal Reserve rate-setting meeting closely as markets gauge whether Chairman Jerome Powell will signal an end to bond purchases when growth and employment prospects are so sensitive to the rise in delta-variant infections.

Cramer Takes on Boston Beer's Surprise Loss

Boston Beer  (SAM) - Get Boston Beer Company, Inc. Class A Report shares dropped more than 25% Friday after the brewer reported a surprise second-quarter loss, leading to numerous price target cuts and a downgrade from analysts at Goldman Sachs. 

The company said it “overestimated” the growth of its hard-seltzer category. The company reported second-quarter profit of $59.2 million, or $4.75 a share, down from $4.88 a share a year earlier and below analysts’ forecasts of $6.60 a share.

"It was never really a great category to begin with and now it's slowing. It was what's driving the growth in Boston Beer, not Sam Adams," Cramer said from the floor of the New York Stock Exchange on Friday. 

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For the full year, Boston Beer executives now expect earnings of $18 to $22 a share, after previously stating expectations of $22 to $26 a share. 

American Express Is Bellwether for Economy

American Express   (AXP) - Get American Express Company Report posted stronger-than-expected second-quarter earnings Friday thanks to a post-pandemic boom in consumer spending and the release of loan loss reserves.

American Express said earnings for the three months ended in June were $2.80 a share, a near tenfold increase from the same period last year and firmly ahead of the Wall Street forecast of $1.66.

"American Express just proves that spending is unabated and spending is continuing through to today. I think that what people realized from Tuesday and Wednesday is that there is no (economic) slowdown," Cramer said.