Jim Cramer says ‘brace yourself’ for week ahead as lawmakers inch toward debt ceiling deal

CNBCs Jim Cramer told investors on Friday to brace themselves for the week ahead as Washington teases a resolution to the debt ceiling crisis.

“If we do we get a debt ceiling deal, it’ll certainly move stocks higher, bringing tons of sidelined cash back into the market, even if it’s earning more than 5%. Yes, stocks will be that attractive,” he said. “But first we’ve got to get there and the process will be agonizing, so brace yourself for next week and keep your fingers crossed.”

Cramer told members of his investing club to maintain a healthy cash position next week because an elevated market can be easily brought down.

Investors also should look out for Monday’s Zoom earnings report, which is scheduled to be released after market close. Zoom, he warned, may be toast as Microsoft solidifies Teams as the default video-conferencing app on Windows.

Tuesday will be all about retail, with reports dropping from Lowe’s, Dick’s Sporting Goods and Williams-Sonoma. Cramer said the Lowe’s report is likely to mirror that of Home Depot, and warned that analysts predict Williams-Sonoma’s results to be subpar.

Wednesday brings updates from ELF Beauty, which Cramer feels optimistic about, as well as Nvidia.

“Many people feel this is the most overhyped and overblown stock in the entire market right now because it’s valued at $770 billion,” Cramer said. “I know that’s a huge market capitalization, but in the end stocks are valued on their future earnings prospects and given that Nvidia’s the backbone of artificial intelligence, you could argue it has the best prospects of any company in the S&P 500.”

Best Buy is expected to file a dismal report on Thursday, Cramer said, adding that the only hope for the company would be having a stock so heavily shorted that it won’t go down despite a poor quarter. Cramer is also keeping an eye on Ulta Beauty, set to report after Thursday’s close. He said he feels good about the company’s prospects because of its loyal customer base.

Friday should finally bring a debt ceiling deal, according to Cramer.

“We can’t go into next weekend without a deal because we’re too close to the drop-dead day,” he said. “Unlike 2011, where the debt limit was an obscure issue that snuck up on us, this year the debt ceiling debacle is well known and weighing down the entire country.”

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer: The CNBC Investing Club Charitable Trust holds shares of Nvidia.