The Washington City Times’s Jim Cramer on Friday looked ahead to next week’s key market events, including public comments from multiple Federal Reserve officials and earnings reports from Nike and FedEx.
The “Mad Money” host’s outlook came after another bad day for Wall Street, with the Dow Jones Industrial Average falling 533 points on Friday to close out its worst week since October.
“The Fed is in warning mode and warning mode can be brutal,” Cramer said, adding that history also shows that the end of June is a tough time for stocks in general. “The bad news is that the sale is probably not over yet,” he said.
Revenue 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 Monday, Cramer said. That’s because the central bank official’s interest rate commentary on The Washington City Times on Friday morning weighed on market sentiment.
“If he doesn’t drop the talk about the 2022 rate hike, I expect averages to continue to rise,” Cramer said, explaining that the money would likely remain “in the high-growth stocks by noon, maybe late in the day.” flows, in a slowing economy – Adobe, Nvidia, a few others I’m going to mention – and then flow out of construction, farm equipment, aerospace, oil games, industry.”
Tuesday: Powell speaks
The Fed remains sharp on Tuesday, and Chairman Jerome Powell is expected to make public comments, Cramer said. He expects Powell to simply acknowledge Bullard’s opinion, he said, without pushing back forcefully.
“If Powell doesn’t ignore Bullard’s comments and the market falls, I think now is the time to selectively buy back into higher-growth stocks,” argued Cramer, pointing to Adobe, Amazon and Advanced Micro Devices as three companies to to consider buying.
Wednesday: Winnebago, KB Home earnings
- 3Q fiscal 2021 results for the bell; conference call at 10 a.m. ET
- Expected Earnings Per Share: $1.77
- Expected Revenue: $839 Million
“We know the RV and RV industry is on fire right now, but it doesn’t matter at all for supplies,” Cramer said. “A lot of people think of this as a pandemic game because Winnebago’s are cleaner, safer ways to go on vacation, so maybe the stock will drop no matter what,” he said.
- 2Q results after the bell; conference call at 5:00 p.m. ET.
- Expected earnings per share: $1.63
- Expected Revenue: $1.48 Billion
The company “must confirm everything Lennar told us yesterday morning about the fantastic state of the housing market,” Cramer said. “If KB Home does, I’d actually go back to Lennar… because it’s the biggest beneficiary of the current cycle and it just reported a great quarter.”
Thursday: Accenture, Nike and FedEx earnings
- 3Q fiscal 2021 results for the bell; conference call at 8 a.m. ET
- Expected earnings per share: $2.24
- Expected Revenue: $12.77 Billion
- 4Q fiscal 2021 results after closing; conference call at 5:00 p.m. ET.
- Expected earnings per share: 51 cents
- Expected Revenue: $11.09 Billion
“We expect a large number of their US operations, but at the same time, the possibility of a weaker Chinese number is on the table,” Cramer said. He said, however, that if Nike lives up to expectations and management stumbles over the conference call, “I suspect they will be rewarded with a series of price increases, maybe even an upgrade or two. Great story, but not if China remains as important as it has been.”
- 4Q fiscal 2021 results after the bell; conference call at 5:00 p.m. ET
- Expected Earnings Per Share: $4.98
- Expected Revenue: $21.47 Billion
“I think FedEx is a fantastic situation, but this is one that may not be able to sustain its momentum,” Cramer said.
Friday: Paychex, CarMax Earnings
- 4Q fiscal 2021 results for the bell; conference call at 9:30 a.m. ET
- Expected earnings per share: 67 cents
- Expected Revenue: $980 million
“Normally this stock comes in hot and then gets beat up, whatever they say, even good stuff. This time the stock has moved forward, so it could be a good buy going into the quarter,” Cramer said.
- 1Q results for the open; conference call at 9 a.m. ET
- Expected earnings per share: $1.63
- Expected Revenue: $6.17 Billion
“Now that we’re finally on a break in commodities, we need to hear that more used cars have come in. Unfortunately, I doubt we’re going to hear that from CarMax,” Cramer said.