Squawk on the Street Cramer’s Morning Take: JPMorgan 1/7/26
Jan 7, 2026
Jim Cramer analyzes the current landscape of bank stocks ahead of key earnings. He expresses concerns about potential parabolic moves and suggests trimming positions in hot banks. The discussion includes insights on notable trades like Capital One and BlackRock, alongside positive remarks on Wells Fargo. Cramer also touches on Jamie Dimon's geopolitical caution regarding Venezuela's impact on JPMorgan. Analyst downgrades and trading restrictions add layers to his cautious outlook as he wraps up with thoughts on market strategies.
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Trim Parabolic Bank Positions Before Earnings
- Trim positions when banks are parabolic into earnings to manage downside risk.
- Cramer says he's mindful and has trimmed names like BlackRock and Capital One amid the run.
Banks Hot Into Earnings Often Pull Back
- Jim Cramer warns that banks have had an extraordinary run into earnings and a pullback is common in that setup.
- He notes earnings next week (JPMorgan, Wells Fargo, Goldman) create risk despite recent strength.
Specific Holdings Reflect Cautious Positioning
- Cramer highlights specific bank holdings and recent trades, citing Capital One and Wells Fargo as examples.
- He links transformational deals and valuation shifts to changing position sizes and PE expectations.