Wells Fargo and JPMorgan reports are “good signs” for earnings

CNBC’s Jim Cramer reviewed quarterly reports from two of the biggest names in finance on Monday: JPMorgan And Wells Fargo. He said he was excited by both banks’ performance and suggested their success meant earnings season would bring more positive news.

“While these quarters were certainly good news for JP Morgan and Wells Fargo, I think they also bode well for earnings season and the market overall,” he said. “It was an incredible reminder that a lot of stocks can work when the Fed is our friend again.”

JPMorgan shares jumped last week after the company beat analysts’ estimates and earned more interest income than expected. For Cramer, part of the company’s success was due to its investment banking and credit card businesses.

Like JPMorgan, Wells Fargo beat Wall Street expectations last week. Although he was pleased with the former’s results, Cramer said he found the latter’s quarter more impressive. He was encouraged that management reiterated that net interest rates would bottom this year and rise again in 2025. Cramer was also encouraged by Wells Fargo’s positive commentary on the overall economy.

Cramer advised investors to keep their speculation about the Federal Reserve’s next move to a minimum. The central bank is unlikely to change course once the rate-cutting cycle begins, he added.

“Instead of getting lost in the details, it is better to focus on the overall positive picture and that is exactly what happened on Friday. “Why worry about how quickly the Fed will cut interest rates?” he said. “What matters is that they provide a big boost to large parts of the economy, and I doubt they will stop anytime soon.”

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Wells Fargo.