CNBC’s Jim Cramer warned investors on Friday that a market rally has no likelihood of sustaining until the causes of the turmoil are resolved.
“If we wish the market to stage a meaningful comeback, we’d like China to reopen, Russia to withdraw from Ukraine, and the [Federal Reserve] to curb-stomp inflation with a 100-basis point rate hike,” the “Mad Money” host said. “Unfortunately, only one in all those three is inside America’s control.”
His comments come on the heels of a volatile week of trading spurned by missed earnings quarters from retail behemoths, mounting investor concerns about inflation and global geopolitical tensions.
The S&P 500 closed around 19% below its record, while the Nasdaq Composite reached 30% off its highs, in bear market territory. The Dow Jones Industrial Average recorded its first eight-week losing streak since 1923.
Along with giving his tackle the present market, Cramer looked ahead to next week’s slate of earnings and gave his thoughts on each reporting company. All earnings and revenue estimates are courtesy of FactSet.
Monday: Zoom
- Q1 2023 earnings release after the close; conference call at 5 p.m. ET
- Projected EPS: 96 cents
- Projected revenue: $1.23 billion
Zoom stock will stay down unless the corporate innovates or acquires one other company that helps it achieve this, Cramer said.
Tuesday: Best Buy, AutoZone, Toll Brothers
Best Buy
- Q1 2023 earnings release before the bell; conference call at 8 a.m. ET
- Projected EPS: $1.59
- Projected revenue: $10.45 billion
Cramer noted that while he’d normally urge investors to purchase shares of Best Buy at its current price, buying anything these days has felt dangerous.
AutoZone
- Q3 2022 earnings release before the bell; conference call at 10 a.m. ET
- Projected EPS: $26.20
- Projected revenue: $3.71 billion
Cramer said that the corporate’s stock is a winner.
Toll Brothers
- Q2 2022 earnings release after the close; conference call at 8:30 a.m. ET
- Projected EPS: $1.50
- Projected revenue: $2.08 billion
“Most skeptics … think the earnings will probably be cut in half in the longer term, if no more,” Cramer said.
Wednesday: Nvidia
- Q1 2023 earnings release after the close; conference call at 5 p.m. ET
Projected EPS: $1.30 - Projected revenue: $8.12 billion
“The motion ahead of the quarter has been horrendous. … I actually think the print will probably be an excellent one, I just do not know if anyone will care,” Cramer said.
Thursday: Macy’s, Costco
Macy’s
- Q1 2022 earnings release before the bell; conference call at 8 a.m. ET
- Projected EPS: 82 cents
- Projected revenue: $5.33 billion
Macy’s has the same product lineup to Goal, which reported worse-than-expected earnings this quarter, Cramer noted.
Costco
- Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
- Projected EPS: $3.04
- Projected revenue; $51.32 billion
Cramer said that while the corporate is performing well, its stock is down a lot that an enormous special dividend and buyback is likely to be the one thing that would make it rally.
Friday: Cover Growth
- Q4 2022 earnings release before the bell; conference call at 10 a.m. ET
- Projected EPS: $10.70
- Projected revenue: $130 million
“Cover needs national laws promoting use of marijuana, not only flat out legalization, but subsidies” for its stock to rally to its previous highs, Cramer said.
Disclosure: Cramer’s Charitable Trust owns shares of Costco and Nvidia.
