Why Jim Cramer Is Closely Eyeing IBM Earnings

Katherine Ross

Next week is a very busy earnings week. 

So, naturally, we have to ask Jim Cramer what he's going to be watching.

"Well, let's watch IBM on Monday. Now, let's talk about IBM, this is very important. Okay, so IBM's got the new CEO, Arvind Krishna. Now, you could say, "Wait a second, "it's too early for him to be able to make any imprint." He got a 5% yield. Think about that, 5% yield. You got a guy who really understands the cloud, a relationship person, and I think that they've got a good international business, it sells at nine times earnings. So, this one could set us up for something that's very positive. Now, it's only a $ 110 billion company now, we know a lot of the NASDAQ names are much bigger than that. They used to be much smaller, but I think it's very important. I also think on Friday American Express reports, and this is the one financial that I'm really worried about. I'm gonna contrast this with Morgan Stanley. American Express as has credit risk, and it has travel risk, and entertainment risk. Morgan Stanley has no credit risk, no travel issues, and no entertainment risk, and is growing and the E-Trade deal's about the close, and that is very important. So I think that Morgan Stanley was maybe one of the best quarters, certainly the best quarter of the financials this week, by far. And so I'm watching the best financial was Morgan Stanley, and I fear the weakest financial will be American Express," said Cramer. 

Watch the full video above for more.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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