Cramer's week ahead: Expect a wave of positivity.
- On Friday, CNBC's Jim Cramer advised investors to prepare for Wall Street's negativity next week as recession concerns intensify.
- The "Mad Money" host stated that Wall Street will continue to be in a state of good news or bad news, and advised viewers to prepare for negativity, regardless of what occurs next week.
On Friday, CNBC's Jim Cramer advised investors to prepare for Wall Street's negativity next week as recession concerns intensify.
According to the "Mad Money" host, while the economy may experience a slowdown due to rate hikes, this does not necessarily mean a catastrophic recession. There are various ways the situation could unfold without resulting in a full-blown recession.
Despite what transpires next week, Wall Street will continue to oscillate between positive and negative news. As such, one should prepare for the potential negativity.
This week, the Treasury yield has inverted, causing concern about a possible recession. While yield curve inversions have historically signaled recessions, they are not definitive indicators.
On Friday, the Dow Jones Industrial Average, S&P 500, and Nasdaq all experienced gains, with the Dow rising 0.4%, the S&P 500 increasing 0.34%, and the Nasdaq gaining 0.29%.
Cramer reviewed the upcoming quarterly earnings of companies and other market-related events for the following week.
All earnings and revenue estimates are courtesy of FactSet.
Monday: U.S. Census Bureau’s Durable Goods report
- Report release at 10:00 a.m. ET
Cramer stated that if a number is strong, it will be considered the last good number of a cycle on its last legs, and if it's bad, it will be the first bad number of the apocalypse.
Tuesday: Acuity Brands, Greenbrier Companies
- An earnings release for Q2 2022 will be released at 6 a.m. ET, followed by a conference call at 8 a.m. ET.
- Projected EPS: $2.38
- Projected revenue: $885 million
Cramer stated that although they performed well previously, their optimism will be labeled as hopeless if they claim things are good during their conference call, unless they share a pessimistic outlook.
- Q2 2022 earnings release; conference call on Wednesday at 11 a.m. ET
- Projected EPS: 19 cents
- Projected revenue: $576 million
Cramer stated that he will take into account the "falling freight rates" while evaluating the company's earnings. He believes that it is not the demand from customers that is decreasing but rather the increasing supply of drivers.
Wednesday: Federal Reserve March meeting notes, Levi Strauss
- March 15 - 16 meeting minutes release at 2 p.m. ET
Cramer cautioned that the notes being discussed were from a time before the transportation rates collapsed, which could contribute to inflation reduction. He emphasized the importance of recognizing that the minutes were old.
- Q1 2022 earnings release; conference call at 5 p.m. ET
- Projected EPS: 42 cents
- Projected revenue: $1.55 billion
Cramer expressed interest in determining if the increase in cotton costs has impacted Levi Strauss' profit margins.
Thursday: Constellation Brands, Conagra Brands
Cramer expressed his preference for the contrast between the brands of Constellation and Conagra. While Constellation's brands include Corona and Mi Campo, Conagra's portfolio comprises Slim Jim and Earth Balance.
- An earnings release for Q4 2022 will be issued before the market opens, followed by a conference call at 10:30 a.m. ET.
- Projected EPS: $2.09
- Projected revenue: $2.02 billion
- The company will release its Q3 2022 earnings at 7:30 a.m. ET and hold a conference call at 9:30 a.m. ET.
- Projected EPS: 58 cents
- Projected revenue: $2.84 billion
Friday: Baker Hughes’ North American rig count
- Release at 1 p.m. ET weekly
Cramer stated that the oils are likely the last strong group, besides utilities, that can still make a substantial amount of money by maintaining production levels.
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