Do not underestimate the market’s small beneficial properties
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After stocks rose slightly on Friday, CNBC’s Jim Cramer advised investors not to underestimate a market that is making small gains.
The S&P 500 climbed 0.19% to 4,247.44, a record close.
“Some would say it’s the calm before the storm … I learned a long time ago that you never empty a boring market,” said the Mad Money presenter. “It is good news that we are being lulled to record highs and the market continues to drop negatives, including yesterday’s searing inflation numbers.”
Elsewhere, the Dow Jones Industrial Index rose 0.04% to 34,479.60. The Nasdaq Composite was up 0.35% to level off at 14,069.42.
In the coming week, Wall Street will turn its attention to Tuesday’s producer price index data and a reading from Wednesday’s Federal Reserve meeting. The producer price index, which measures how much companies pay producers for goods, could also be hot, Cramer said.
Either way, investors could find opportunities in the market, he said.
“I want you to find relatively cheap stocks of good companies and then buy them cheap because of this real Wall Street catfish that is driving some stocks down unfairly,” he said. “It doesn’t make any difference to me or Cramerica whether it’s value or growth names.”
Cramer gave viewers a preview of the upcoming corporate earnings reports he circled on his calendar. The forecasts for sales and earnings per share are based on FactSet estimates:
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- Earnings Release for Fourth Quarter 2021: After Market; Conference call: 5 p.m.
- Projected earnings per share: $ 1.31
- Expected sales: $ 11.02 billion
“This boring, old-fashioned enterprise software company has increased its share price 28% since the beginning of the year, thanks to a remarkable acceleration in its core businesses,” said Cramer. “I bet the quarter is good.”
- Earnings release for Q2 2021: After Market; Conference call: Thursday, 10:30 a.m.
- Projected earnings per share: $ 2.37
- Expected sales: $ 6.10 billion
“Stuart Miller, the former CEO and current chairman of the board, would like to take this conference call to update you on the state of the art in housing,” he said. “We know that the raw materials used in a home skyrocket even though the lumber goes down. But the end cost rarely creeps up, and that’s thanks to the ingenuity of these excellent builders.”
Thursday: Kroger, Jabil, Adobe
- Earnings release for the first quarter of 2021: ahead of market; Conference call: 10 a.m.
- Forecast earnings per share: 98 cents
- Expected sales: $ 39.56 billion
“Kroger stock has been a great performer, and that’s because it is a big beneficiary of inflation,” said Cramer. “I actually expect a great number from Kroger, not many think that.”
- Earnings publication for the third quarter of 2021: ahead of market; Conference call: 8:30 a.m.
- Projected earnings per share: $ 1.04
- Expected sales: $ 6.95 billion
“Jabil does a lot with Apple, and Wall Street loves to play silly guessing games trying to extrapolate from Jabil’s results to Apple’s,” he said. “I wish they just focused on Jabil itself, which was an amazing stock that rose 36% over the year. Another unsung share of an unsung company in an unsung bull.”
- Earnings release for Q2 2021: After Market; Conference call: 5 p.m.
- Projected earnings per share: $ 2.81
- Expected sales: $ 3.73 billion
“Lately [this] The stock has moved and this was usually the best time to buy it, “said the host.