Banks kick off critical earnings season

After President Donald Trump’s new tariffs crushed global stocks for the second day in a row, CNBC’s Jim Cramer said next week’s earnings report is the first to see how CEOs deal with fallout.

Big bank revenues are headlines for next week, along with inflation data. But no matter what the numbers reveal, Cramer said the market direction will depend on Trump’s next move. If Trump gives relief to his trading partners, it could suddenly get worse like Black Monday in 1987, and the tariff-driven market defeat could soon end if Trump grants his trading partners the relief.

“If President Trump is incompatible and does nothing to improve the damage I’ve seen in the last few days, I wouldn’t be constructive here,” Cramer said.

Retailers Levi Strauss We will report our revenues on Monday. Cramer said jeans makers were vulnerable to the impact of tariffs on countries such as Japan and Mexico, and earlier poor guidance punished the stock. Apparel Company PVH However, this week we recorded positive revenue results, and Cramer said Levi Strauss could also beat expectations.

Tuesday brings revenue from drugstore chains Walgreen and Cal-Maine Foods. Walgreens announced in March that it will be private with private equity firm Sycamore Partners in a roughly $10 billion deal. Meanwhile, egg producer Calmaine can provide insight into egg prices after a surge in the winter, Cramer said.

Delta Air Lines Released quarterly results on Wednesday, with the airline cutting its outlook in March, but Cramer said the carrier’s revenues still provide insight into the health of the travel industry. The giant of alcoholic beverages Constellation Brand I will also report on Wednesday. Mexican tariffs could present more headwinds to the company, Cramer said.

Used car retailer Thursday Carmax Post revenue results. Tariffs on new cars could drive Carmax sales, but Cramer said the possibility of a recession would ultimately limit the stock’s appeal.

The Bureau of Labor Statistics also released its latest consumer price index report on Thursday. Cramer said inflation would become sticky and Trump’s tariffs would raise prices even further. It will put the Federal Reserve in a tough spot to decide whether to cut interest rates in May, he said.

Friday will unofficially begin earnings season as an asset manager Black Rock And a big bank jpmorgan chain, Morgan Stanley and Wells Fargo Everything reports quarterly results. But even if banks beat expectations, worsening economic expectations from tariffs has already punished stocks and could do so next week, Cramer said.

“Our only real hope is for the president to come up with something that could turn this bear into a bull,” Cramer said.

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Disclaimer CNBC Investing Club Charitable Trust holds stakes in BlackRock and Wells Fargo.