JPMorgan stock will bounce back, Jim Cramer says – CNBC

CNBC’s Jim Cramer reviewed market action as earnings season kicks off and suggested that JPMorgan Chase can recover after its Tuesday report sent shares plummeting.

“Jamie was back urging caution and getting tough about the right to charge high fees for credit cards to make up for losses. That combination created a tsunami of selling,” Cramer said. “We saw the same thing last time. I say wait a day or two, just like last time, so you can gradually buy this one on weakness. Why? Because it will always bounce back.”

JPMorgan beat earnings and revenue expectations, but the stock was down 4.19% by close.

Along Dimon’s cautious tone, Cramer suggested investors were put off because the bank disappointed on underwriting revenue. JPMorgan’s investment banking fees fell 5% to $2.3 billion, about $210 million below the StreetAccount estimate.

However, Cramer said Dimon is usually cautious during earnings. Cramer noted that even though the stock dipped following its last quarter after the CEO warned of issues in private credit markets, it managed to quickly climb back up.

Cramer also looked at other sectors’ performance during the day’s session, pointing to gains in retail as “the most fascinating development,” as the group had been floundering for months. He named retail stocks that saw a bounce during the day’s session, including Walmart, Target, Home Depot, Lowe’s, Wayfair and Ralph Lauren. Cramer attributed the action in part to new evidence of tame inflation, saying buyers like companies that benefit from lower interest rates.

Investors seemed to sour on enterprise software names on Tuesday, Cramer continued, as they worried artificial intelligence will make products obsolete. While Salesforce, Adobe and ServiceNow weathered losses, AI powerhouses Intel and AMD saw a boost, he said.

“As I said at the beginning of the year, though, the first two weeks are always a jumbled amalgam of love and hate, too much of both,” he said. “But the bottom line? Now that earnings season has started, the rehearsals are over, and we’re going to begin to see the reaction to actual numbers. And if it’s anything like JPMorgan – what can I say? It’s showtime.”

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Disclaimer The CNBC Investing Club holds shares of Home Depot and Salesforce.