CNBC’s Jim Cramer warned investors on Friday that a market rally has no chance of sustaining until the causes of the turmoil are resolved.
“If we want the market to stage a meaningful comeback, we need 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 of those three is within 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.
In addition to giving his take on the current 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 company innovates or acquires another company that helps it do so, 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 buy shares of Best Buy at its current price, buying anything lately has felt risky.
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 company’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 be cut in half in the future, if not 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 action ahead of the quarter has been horrendous. … I actually think the print will be a good one, I just don’t 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 a similar product lineup to Target, 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 company is performing well, its stock is down so much that a huge special dividend and buyback might be the only thing that could make it rally.
Friday: Canopy Growth
- Q4 2022 earnings release before the bell; conference call at 10 a.m. ET
- Projected EPS: $10.70
- Projected revenue: $130 million
“Canopy needs national legislation promoting use of marijuana, not just 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.
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