2.9 C
New York

How Powell and the Fed may react to FedEx warning

Published:

CNBC’s Jim Cramer on Friday said that FedEx’s warning of worsening economic conditions suggests the Federal Reserve is doing higher in its inflation effort than expected — meaning the central bank could take a step back after its meeting next week.

“If Fed chief Jay Powell watched our interview last night … he might discover that he’s made more progress whipping inflation than he might realize,” Cramer said.

“Possibly Powell will hit us with one other 75 basis point hike right here after which say possibly it is time to take a more measured approach to be able to assess how things are going,” he added.

The “Mad Money” host’s comments got here after FedEx, a bellwether company for the state of the economy, warned on Thursday of a decline in global shipments and an impending world recession.

Stocks closed down on Friday as Wall Street digested the news, with the most important averages recording their fourth losing week previously five weeks.

Cramer also previewed next week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.

Monday: AutoZone

  • Q4 2022 earnings release at 6:55 a.m. ET; conference call at 10 a.m. ET
  • Projected EPS: $38.5
  • Projected revenue: $5.16 billion

Cramer said he’s eager about knowing if company officials see an end to the automobile shortage.

Tuesday: Nvidia

  • GTC Financial Analyst Q&A at 1 p.m. ET

Cramer said he’s sticking with Nvidia despite the stock’s recent tumbles. “That is how Nvidia behaves — you get terrifyingly swift moves down followed by long rallies.”

Wednesday: General Mills, Salesforce, Lennar, KB Homes

General Mills

  • Q1 2023 earnings release at 7 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $1
  • Projected revenue: $4.72 billion

The corporate will likely be a winner since it’s a best-of-breed food stock in an uncertain economic environment, Cramer predicted.

Salesforce

  • Investor Day at 4 p.m. ET 

Cramer said that while he doesn’t expect to listen to anything that would motivate him to purchase the stock, he’s still bullish long run.

Lennar

  • Q3 2022 earnings release at 4:30 p.m. ET; conference call on Thursday at 11 a.m. ET
  • Projected EPS: $4.86
  • Projected revenue: $8.97 billion

KB Home

  • Q3 2022 earnings release between 4:10 to 4:20 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $2.66
  • Projected revenue: $1.88 billion

Cramer said he expects each Lennar and KB Home to be soft resulting from soaring mortgage rates.

Thursday: Costco, FedEx, Qualcomm

Costco

  • Q4 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $4.17
  • Projected revenue: $70.8 billion

Cramer said he hopes the stock goes down in order that the Investing Club can purchase more.

FedEx

While the corporate could reveal more information on its latest quarter, its trajectory likely won’t change because it already reported disappointing leads to its preliminary announcement, Cramer said.

Qualcomm

  • Automotive Investor Day at 3 p.m. ET

Cramer said that the corporate will exhibit the “recent Qualcomm” throughout the event.

Disclaimer: Cramer’s Charitable Trust owns shares of Costco, Salesforce, Nvidia and Qualcomm.

Cramer's game plan for the trading week of Sept. 19

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing for gratis to enable you to construct long-term wealth and invest smarter.

sportinbits@gmail.com
sportinbits@gmail.comhttps://sportinbits.com
Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles

spot_img

Recent articles

spot_img