Cramer’s week ahead: Markets need a strong job market, tame inflation to stay up

CNBC̵7;s Jim Cramer told investors on Friday that stocks could see another strong week of trading given the right economic conditions.

“As the year winds down, the holidays will become more and more of a focus. Right now, the forecast is cloudy – too much cross current. But if the job market remains strong and inflation remains low, we could still see a more Great week,” he said.

Stocks closed for the week on Friday, marking the first time since October that the three major indices saw consecutive weekly gains.

Markets were volatile this week as investors digested Federal Reserve Chairman Jerome Powell’s indication that the central bank May start to slow down its pace of interest rate hikes soon more hot wages and labor data,

Cramer said he has an eye on the Producer Price Index and the University of Michigan Consumer Sentiment Index report to be released next week, and he worries that sentiment could be too cold.

“Right about now, we need a boost, a big boost, if only to save Christmas for retail,” he said.

He also previewed next week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.

Tuesday: AutoZone, Toll Brothers, SentinelOne

AUTOZONE

  • Q1 2023 Earnings Released at 6:55 am ET; Conference Call at 10 AM ET
  • Estimated EPS: $25.3
  • estimated revenue; $3.86 billion

He said the stock has been a favorite of his over the years.

toll brothers

  • Q4 2022 Earnings to be Released at 4:30 PM ET; Conference Call Wednesday at 8:30 AM ET
  • Estimated EPS: $4.01
  • Estimated revenue: $3.17 billion

While Cramer said it’s generally advised not to buy housing stocks that are in cycles that could foreshadow a recession, Powell’s recent comments could make the stock an interesting investment.

sentinelvan

  • Earnings Release After Q3 2023 Closing; Conference Call at 5 PM ET
  • Estimated loss: Loss of 11 cents per share
  • Estimated Revenue: $180 million

He said he is unsure when the stock will go down.

Wednesday: Campbell Soup, Ollie’s Bargain Outlet Holdings, Brown-Forman, Lowe’s

Campbell Soup

  • Q1 2023 Earnings to be released at 7:30 am ET; Conference Call at 8 AM ET
  • Estimated EPS: 88 cents
  • Estimated revenue: $2.45 billion

He said the company has been “reinvested” by CEO Mark Claus.

Oli’s Bargain Outlet Holdings

  • Q3 2022 Earnings Released Before the Bell; Conference Call at 8:30am ET
  • Estimated EPS: 40 cents
  • Estimated Revenue: $429 million

Cramer said the company is a “terrific” bargain store, meaning it should have exceptional results in the quarter.

brown foreman

  • Q2 2023 Earnings to be Released at 8 AM ET; Conference Call at 10 AM ET
  • Estimated EPS: 55 cents
  • Estimated Revenue: $1.08 billion

Cramer pointed out that liquor sales tend to do well during a recession, which is good news for the Jack Daniel’s distiller.

Thursday: Broadcom: Costco, Lululemon Athletica

broadcom

  • Q4 2022 Earnings to be Released at 4:15 PM ET; Conference Call at 5 PM ET
  • Estimated EPS: $10.3
  • Estimated Revenue: $8.90 billion

The semiconductor company will report good earnings even if cloud growth slows, Cramer predicted.

costco

  • Q1 2023 Earnings to be Released at 4:15 PM ET; Conference Call at 5 PM ET
  • Estimated EPS: $3.12
  • estimated revenue; $58.36 billion

While the retailer’s quarter is likely to be solid, the better deal stock is TJX, he said.

lululemon athletica

  • Q3 2022 Earnings to be Released at 4:05 PM ET; Conference Call at 4:30 PM ET
  • Estimated EPS: $1.96
  • Estimated Revenue: $1.81 billion

Cramer said he’s betting that Lululemon will beat Wall Street’s expectations in its latest quarter.

Disclaimer: Cramer’s charitable trust owns shares of Costco and TJX.

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