CNBC’s Jim Cramer on Tuesday gave his take on earnings as the season draws to a close, saying that sectors as a whole managed to perform fairly well. Rather than poor reports from companies, he said many stocks dipped due to other concerns, namely rising interest rates.
“When you look at all the groups, this was not a disappointing earnings season at all,” he said. “We saw lots of good numbers, but many stocks were crushed by interest rate worries or weight-loss drug concerns.”
Cramer first pointed to some companies in the “Magnificent Seven” Nasdaq cohort, like Microsoft, who he said had a solid quarter. He argued that Alphabet also reported positive results, he said, adding the stock may have “roared” if management had better explained issues with the company’s cloud business. Cramer also said he didn’t understand why some would view Apple‘s most recent quarter as a miss, asserting that analysts should focus on the company’s growing service revenue stream.
He also said companies in the semiconductor space like AMD and Intel did well, and industrials saw “the fewest misses in ages.” Cramer called healthcare a “huge bright spot,” saying many medical stocks put our positive results. However, he conceded that some may have been blunted by fears about weight loss drugs shrinking their end markets.
And despite the uptick in mortgage rates over the past quarter, Cramer argued that homebuilders like Lennar, Pulte, DR Horton and Toll Brothers had the best estimate beats of any industry. He also said that companies in the utilities sector reported positive figures, but were hurt primarily because of the bond market.
“Aside from Whirlpool and drug company Pfizer, I’ve been very impressed with pretty much every company that’s reported so far,” Cramer said. “It’s almost as though all of these earnings commentary is coming from a parallel universe—one that’s really much worse than reality.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Microsoft, Alphabet and Apple.