CNBC’s Jim Cramer said Friday that three major events next week will determine whether or not the nightmare month for the stock market continues into October.
Here are the events:
- Non-farm labor report released on Friday. Cramer said he expects it to show inflated hiring and wages.
- Two speaking engagements by Cleveland Fed Chair Loretta Meester, who Cramer believes is the primary inflation hawk on the Federal Open Market Committee. “It wants to protect us from high inflation, even if it means raising interest rates in a recession,” he said.
The S&P 500 closed on Friday its worst month since March 2020. For the month, the Dow Jones Industrial Average and Nasdaq Composite fell 8.8% and 10.5%, respectively.
While it’s likely that both Meester and the report will bring bad news, investors can protect themselves from market wrecks if they stick to a solid game plan, according to Cramer.
“High-quality companies with good balance sheets and high dividends that will benefit from a fall in inflation, because that’s what’s going to happen,” They said.
He also previewed next week’s earnings slate. All earnings and revenue estimates courtesy of FactSet.
Wednesday: Helen of Troy, Lamb Wesson
Helen of Troy
- Q2 2023 earnings release before bell; Conference call at 9 a.m. ET
- Estimated EPS: $2.21
- Estimated Revenue: $521 million
Lamb Weston Holdings
- Q1 2023 earnings release at 8:30 am ET; Conference call at 10 a.m. ET
- Estimated EPS: 79 cents
- Estimated Revenue: $1.21 billion
Cramer said, “We saw this from Nike last night – whatever happens the negativity increases as the top just moves or gets a little too high. When they report I expect both. That’s what will happen with him.”
Thursday: Constellation Brands, Conagra Brands, McCormick, Norwegian Cruise Line Holdings
- Q2 2023 earnings release at 7:30 a.m. ET; Conference call at 10:30 a.m. ET
- Estimated EPS: $2.81
- Estimated Revenue: $2.51 billion
He said he expects the company’s top line to be “extraordinarily good.”
- Q1 2023 earnings release at 7:30 a.m. ET; Conference Call at 9:30 p.m. ET
- Estimated EPS: 52 cents
- Estimated revenue: $2.85 billion
According to Cramer, the company needs to grow its business.
- Q3 2022 earnings release at 6:30 AM ET; Conference call at 8 a.m. ET
- Estimated EPS: 71 cents
- Estimated revenue: $1.6 billion
Cramer said the company’s earnings call earlier this month will reinforce its cut in weaker-than-expected third-quarter earnings and full-year outlook.
Norwegian Cruise Line
- Investors meeting at 10 a.m. ET
Cramer said he expects Norwegian to outperform competitor Carnival, which struggled with higher costs in its latest quarter, but it’s unclear whether that will be enough to help Norwegian’s stock.
Friday: Tilray Brands
- Q1 2023 earnings release at 7 a.m. ET; 8:30 a.m. conference call ET
- Estimated loss: Loss of 5 cents per share
- Estimated Revenue: $169 million
He predicted the company would make a “bold” statement about the legalization of cannabis and said he is considering whether it could be a great speculative stock to own during the Biden administration.
Disclosure: Cramer’s Charitable Trust owns shares of Constellation Brands.