CNBC’s Jim Cramer on Friday suggested buyers to brace themselves in opposition to Wall Street’s negativity subsequent week as considerations over a attainable recession mount.
“I do imagine that our financial system’s headed for a slowdown — that is simply what price hikes do. But a slowdown does not essentially translate right into a horrific, crash-landing recession. … There are some ways this example can play out that do not finish in a full-blown recession,” the “Mad Money” host stated.
“Regardless of what occurs subsequent week, Wall Street’s going to stay in excellent news, unhealthy information mode. … So, maybe it is 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 usually are not assured indicators.
The Dow Jones Industrial Average 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 Durable Goods report
Report launch at 10:00 a.m. ET
“If it is sturdy, I can inform you it will likely be pronounced because the final good quantity” of a cycle on its final legs, Cramer stated. “If it is unhealthy, it will be the primary unhealthy variety of the apocalypse.”
Tuesday: Acuity Brands, Greenbrier Companies
Acuity Brands
Q2 2022 earnings launch at 6 a.m. ET; convention name at 8 a.m. ETProjected EPS: $2.38Projected income: $885 million
“Last time they did nicely, 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 except they inform a really miserable story,” Cramer stated.
Greenbrier Companies
Q2 2022 earnings launch; convention name on Wednesday at 11 a.m. ETProjected EPS: 19 centsProjected income: $576 million
Cramer stated that he’ll be maintaining “plummeting freight charges” in thoughts when reviewing the corporate’s earnings. “I do not assume it is buyer demand sinking however provide of drivers rising,” he stated.
Wednesday: Federal Reserve March assembly notes, Levi Strauss
Federal Reserve
March 15 – 16 assembly minutes launch at 2 p.m. ET
“Those 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.
Levi Strauss
Q1 2022 earnings launch; convention name at 5 p.m. ETProjected EPS: 42 centsProjected income: $1.55 billion
Cramer stated he is inquisitive about discovering out whether or not rising price of cotton has affected Levi Strauss’ gross margins.
Thursday: Constellation Brands, Conagra Brands
Cramer stated he appreciated the juxtaposition of the 2 manufacturers: Constellation’s manufacturers embrace names like Corona and Mi Campo whereas Conagra’s portfolio consists of manufacturers like Slim Jim and Earth Balance.
Constellation Brands
This fall 2022 earnings launch earlier than the bell; convention name at 10:30 a.m. ETProjected EPS: $2.09Projected income: $2.02 billion
Conagra Brands
Q3 2022 earnings launch at 7:30 a.m. ET; convention name at 9:30 a.m. ETProjected EPS: 58 centsProjected income: $2.84 billion
Friday: Baker Hughes’ North American rig rely
Release at 1 p.m. ET weekly
“The oils are arguably the final remaining sturdy group apart from the recession-proof utilities, they usually love that they’ll make a ton of cash holding down manufacturing,” Cramer stated.