Kramer’s week ahead: Markets need a strong labor market, and for inflation to remain high
CNBC’s Jim Cramer told investors Friday that stocks could see another strong week of trading, given the right economic conditions.
“As we approach the end of the year, the holidays will become more and more of a focus. For now, the outlook is cloudy – many cross currents. But if the job market remains strong and inflation remains tame, we can have a ‘more good week’.
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Stocks closed higher on Friday, marking the first time since October that the three major indexes saw consecutive weekly gains.
Markets have been volatile this week as investors digested Fed Chair Jerome Powell’s signal that the central bank may start slowing interest rate hikes soon and hot wages and employment data.
Kramer said he’s been watching the University of Michigan’s Producer Price Index and Consumer Sentiment reports due next week, and he’s concerned that sentiment could be too cold.
“Right now we need a push, a big push, even if it’s just to save retail Christmas,” he said.
He also reviewed next week’s earnings list. All earnings and revenue estimates provided by FactSet.
Tuesday: AutoZone, Toll Brothers, and SentinelOne
AutoZone
- First Quarter 2023 Earnings Release at 6:55 AM ET; Conference call at 10 a.m. ET
- Expected earnings per share: $25.3
- Projected revenue is $3.86 billion
He said the stocks have been his favorites for years.
Toll Brothers
- Q4 2022 Earnings Announcement at 4:30 PM ET; Conference call Wednesday at 8:30 a.m. ET
- Expected earnings per share: $4.01
- Projected revenue: $3.17 billion
Cramer said that while it’s generally advised against buying home stocks in a tightening cycle that could lead to a recession, Powell’s recent comments could make the stock an interesting investment.
The guard is one
- Third Quarter 2023 Earnings Announcement After Closing; Conference call at 5 p.m. ET
- Expected loss: loss of 11 cents per share
- Estimated revenue: $180 million
He said he wasn’t sure when the stock would go down.
Wednesday: Campbell’s Soup, Ole Bargain Holdings Gallery, Brown-Forman, Lowe’s
Campbell’s soup
- First Quarter 2023 Earnings Announcement at 7:30 AM ET; Conference call at 8 a.m. ET
- Projected earnings per share: 88 cents
- Projected revenue: $2.45 billion
He said the company had been “reinvented” by CEO Mark Close.
Ole collectibles deal
- Q3 2022 earnings announcement before the bell; Conference call at 8:30 a.m. ET
- Expected earnings per share: 40 cents
- Expected revenue: $429 million
The company is a “superb” deal store, Cramer said, which means a quarter of it should have outstanding results.
Brown Foreman
- Q2 2023 earnings announcement at 8 a.m. ET; Conference call at 10 a.m. ET
- Projected earnings per share: 55 cents
- Projected revenue: $1.08 billion
Kramer noted that liquor sales tend to do well in a recession, which is good news for Jack Daniel’s distiller.
Thursday: From Broadcom: Costco, Lululemon Athletica
from Broadcom
- Q4 2022 earnings release at 4:15 PM ET; Conference call at 5 p.m. ET
- Expected earnings per share: $10.3
- Projected revenue: $8.90 billion
Kramer expected the semiconductor company to report significant earnings despite slowing cloud growth.
Costco
- First Quarter 2023 Earnings Release at 4:15 PM ET; Conference call at 5 p.m. ET
- Expected earnings per share: $3.12
- Expected revenue is $58.36 billion
While the retailer’s quarter is likely to be strong, the best bargain is TJX stock, he said.
Lululemon Athletica
- Q3 2022 earnings release at 4:05 PM ET; Conference call at 4:30 p.m. ET
- Expected earnings per share: $1.96
- Projected revenue: $1.81 billion
Kramer said he’s betting that Lululemon will beat Wall Street expectations in its most recent quarter.
Disclaimer: Cramer’s Charitable Trust owns stakes in Costco and TJX.
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