CNBC’s Jim Cramer on Friday suggested buyers to brace themselves in opposition to Wall Road’s negativity subsequent week as considerations over a potential recession mount.
“I do imagine that our financial system’s headed for a slowdown — that is simply what charge hikes do. However a slowdown would not essentially translate right into a horrific, crash-landing recession. … There are numerous methods this case can play out that do not finish in a full-blown recession,” the “Mad Cash” host stated.
“No matter what occurs subsequent week, Wall Road’s going to stay in excellent news, unhealthy information mode. … So, maybe it’s best to metal your self for the negativity,” he later added.
Key components of the Treasury yield have inverted this week, elevating considerations that the financial system is headed for a recession. Yield curve inversions have traditionally preceded recessions however will not be assured indicators.
The Dow Jones Industrial Common rose 0.4% on Friday whereas the S&P 500 gained 0.34%. The Nasdaq elevated 0.29%.
Cramer additionally previewed subsequent week’s slate of firms reporting quarterly earnings, in addition to different occasions related to the market.
All earnings and income estimates are courtesy of FactSet.
Monday: U.S. Census Bureau’s Sturdy Items report
- Report launch at 10:00 a.m. ET
“If it is sturdy, I can let you know it is going to be pronounced because the final good quantity” of a cycle on its final legs, Cramer stated. “If it is unhealthy, it’s going to be the primary unhealthy variety of the apocalypse.”
Tuesday: Acuity Manufacturers, Greenbrier Corporations
- Q2 2022 earnings launch at 6 a.m. ET; convention name at 8 a.m. ET
- Projected EPS: $2.38
- Projected income: $885 million
“Final time they did properly, however due to the inverted yield curve, this time if they are saying issues are good, they are going to be branded as hopeless optimists on their convention name until they inform a very miserable story,” Cramer stated.
- Q2 2022 earnings launch; convention name on Wednesday at 11 a.m. ET
- Projected EPS: 19 cents
- Projected income: $576 million
Cramer stated that he’ll be maintaining “plummeting freight charges” in thoughts when reviewing the corporate’s earnings. “I do not suppose it is buyer demand sinking however provide of drivers rising,” he stated.
Wednesday: Federal Reserve March assembly notes, Levi Strauss
- March 15 – 16 assembly minutes launch at 2 p.m. ET
“These notes come from a interval earlier than the collapse in transportation charges, and that is one thing that may cut back inflation all by itself. … Be aware that [the minutes are] outdated,” Cramer stated.
- Q1 2022 earnings launch; convention name at 5 p.m. ET
- Projected EPS: 42 cents
- Projected income: $1.55 billion
Cramer stated he is considering discovering out whether or not rising value of cotton has affected Levi Strauss’ gross margins.
Thursday: Constellation Manufacturers, Conagra Manufacturers
Cramer stated he favored the juxtaposition of the 2 manufacturers: Constellation’s manufacturers embody names like Corona and Mi Campo whereas Conagra’s portfolio contains manufacturers like Slim Jim and Earth Stability.
- This fall 2022 earnings launch earlier than the bell; convention name at 10:30 a.m. ET
- Projected EPS: $2.09
- Projected income: $2.02 billion
- Q3 2022 earnings launch at 7:30 a.m. ET; convention name at 9:30 a.m. ET
- Projected EPS: 58 cents
- Projected income: $2.84 billion
Friday: Baker Hughes’ North American rig depend
- Launch at 1 p.m. ET weekly
“The oils are arguably the final remaining sturdy group in addition to the recession-proof utilities, and so they love that they’ll make a ton of cash holding down manufacturing,” Cramer stated.