‘The sell-off in all probability is not accomplished’
CNBC’s Jim Cramer on Friday looked ahead to next week’s key market events, which include public statements by several Federal Reserve officials and earnings reports from Nike and FedEx.
Host Mad Money’s outlook came after another bad day for Wall Street, with the Dow Jones Industrial Average falling 533 points on Friday, ending its worst week since October.
“The Fed is in warning mode, and warning mode … can be brutal,” said Cramer, adding that history also shows that late June is a difficult time for stocks in general. “The bad news is that the sell-off is unlikely to be over,” he said.
Sales and earnings per share forecasts are based on FactSet estimates:
Monday: Bullard speaks
Investors will pay close attention to what St. Louis Fed President James Bullard has to say on Monday, Cramer said. That’s because the central bank official’s interest rate comments on Friday morning on CNBC weighed on market sentiment.
“Unless he drops the 2022 rate hike talks, I expect the averages will continue to hit,” Cramer said, explaining that the money will then likely “continue into high-growth stocks by noon, perhaps late in the day.” would flow that would flourish ”. in a slowing economy – Adobe, Nvidia, a few others I’ll mention – and then drain out of construction, agriculture, aerospace, oil exploration, and industry. “
Tuesday: Powell speaks
The Fed remains in focus on Tuesday, with Chairman Jerome Powell to make public comments, Cramer said. He expects Powell to simply accept Bullard’s view, he said, without forcibly pushing back.
“If Powell doesn’t mitigate Bullard’s comments and the market falls, I think it is time to selectively buy higher growth stocks,” said Cramer, referring to Adobe, Amazon and Advanced Micro Devices as the three companies making a buy should consider.
Wednesday: Winnebago, KB Home win
- 3rd quarter 2021 results before the bell; Conference call at 10 a.m. ET
- Projected earnings per share: $ 1.77
- Expected revenue: $ 839 million
“We know the RV and RV industry is on fire right now, but it didn’t matter at all to stocks,” said Cramer. “A lot of people think this is a pandemic game because Winnebagos are cleaner, safer ways to get away, so the stock may definitely decline,” he said.
KB home page
- 2Q results after the bell; Conference call at 5 p.m. ET.
- Projected earnings per share: $ 1.63
- Expected sales: $ 1.48 billion
The company “needs to confirm everything Lennar told us yesterday morning about the fantastic state of the housing market,” said Cramer. “If KB Home did that, I would actually be going back to Lennar … because it’s the biggest beneficiary of the current cycle and has just reported a great quarter.”
Thursday: Accenture, Nike and FedEx profit
- 3rd quarter 2021 results before the bell; Conference call at 8 a.m. ET
- Projected earnings per share: $ 2.24
- Expected sales: $ 12.77 billion
- 4th quarter 2021 results after closing; Conference call at 5 p.m. ET.
- Projected earnings per share: 51 cents
- Projected sales: $ 11.09 billion
“We expect a large number from their US business, but at the same time the possibility of a weaker Chinese number … is very on the table,” said Cramer. However, he said that if Nike lives up to expectations and management avoids any stumbling on the conference call, “I suspect they will be rewarded with a number of price target increases, maybe even an upgrade or two. Great story, but not if China stays that way . ” important as always. “
- 4th quarter 2021 results after the bell; Conference call at 5 p.m. ET
- Projected earnings per share: $ 4.98
- Expected sales: $ 21.47 billion
“I think FedEx is a fantastic situation, but this is one that may not be able to maintain its momentum,” said Cramer.
Friday: Paychex, CarMax revenue
- 4th quarter 2021 results before the bell; Conference call at 9:30 a.m. ET
- Projected earnings per share: 67 cents
- Expected sales: $ 980 million
“Usually this stock works up a sweat and then no matter what they say, good things will also be thrown upside down. This time the stock was anticipated so it could be a good buy for the quarter, ”said Cramer.
- 1Q results before the opening; Conference call at 9 a.m. ET
- Projected earnings per share: $ 1.63
- Expected sales: $ 6.17 billion
“Now that we finally have a raw materials crisis, we need to hear that there are more used cars. Unfortunately, I doubt we’ll hear that from CarMax,” said Cramer.