CNBC’s Jim Cramer said Friday that three key events will determine whether the stock market’s nightmare month lasts into October.
Events are:
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- Release of Friday’s Nonfarm Labor Report. Cramer said he expects it to show that jobs and wages are ballooning.
- Two lectures by Cleveland Fed President Loretta Mester. Cramer believes he is a major inflationary hawk for the Federal Open Market Commission. “She wants to protect us from high inflation, even if that means raising interest rates and pushing us into a recession,” he said.
The S&P 500 closed out its worst month since March 2020 on Friday. The Dow Jones Industrial Average and Nasdaq Composite fell 8.8% and 10.5% respectively over the month.
Both Mester and the report are likely to bring bad news, Cramer said, but investors can protect themselves against market debris if they stick to a solid game plan.
“It’s about owning quality companies with good balance sheets and high dividends that benefit from lower inflation, because that’s what’s going to happen.” He said.
He also previewed next week’s earnings slate. All earnings and earnings estimates are courtesy of his FactSet.
Wednesday: Helen of Troy, Ram Wesson
Helen of Troy
- Q2 2023 Earnings Release Before Bell.Conference Call at 9:00 AM ET
- Projected EPS: $2.21
- Projected revenue: $521 million
Lam Weston Holdings
- The company’s first quarter 2023 earnings call is scheduled for 8:30 a.m. ET.Conference Call at 10:00 AM ET
- Projected EPS: 79 cents
- Projected revenue: $1.21 billion
“Last night saw this from Nike. All that’s happening is the drop is accentuated as the rise treads water or goes slightly higher. It happens both when they report is what I expect,” Kramer said.
Thursday: Constellation Brands, Conagra Brands, McCormick, Norwegian Cruise Line Holdings
constellation brands
- The second quarter 2023 earnings call is scheduled for 7:30 a.m. ET.Conference Call at 10:30 AM ET
- Projected EPS: $2.81
- Projected revenue: $2.51 billion
He said he expects the company’s top line to be “very good.”
conagra brand
- The company’s first quarter 2023 earnings call is scheduled for 7:30 a.m. ET.Conference Call at 9:30 AM ET
- Projected EPS: 52 cents
- Projected revenue: $2.85 billion
Cramer said the company needs to grow its business.
McCormick
- The third quarter 2022 earnings call is scheduled for 6:30 a.m. ET.Conference Call at 8:00 AM ET
- Projected EPS: 71 cents
- Projected revenue: $1.6 billion
Cramer said the company’s earnings report simply adds to the disappointing third-quarter earnings and lower full-year guidance announced earlier this month.
norwegian cruise line
- 10:00 AM ET INVESTOR MEETING
Cramer said he expects Norwegian to outperform competitor Carnival, which has struggled with rising costs in the most recent quarter, but will that be enough to boost Norwegian’s share price? I don’t know.
Friday: Tilray Brand
- The first quarter 2023 earnings call is scheduled for 7:00 a.m. ET.Conference Call at 8:30 AM ET
- Expected loss: 5 cent loss per share
- Expected revenue: $169 million
He predicted the company would make “bold” statements about legalizing cannabis and said he was pondering whether this would be a big speculative stock to hold during the Biden administration.
Disclosure: Cramer’s Charitable Trust owns shares of Constellation Brands.
