Cramer’s week ahead: ‘Sell stocks in any rally’ as Fed curbs any market bounce

CNBC’s Jim Cramer warned investors Friday that any upcoming market rally will be temporary as the Federal Reserve turns up the heat in its fight against inflation.

“Until we see a pattern of high unemployment, low consumer spending and low oil prices, don’t assume you need to sell stocks in any rally because the Fed is going to make sure these rallies are temporary. “mad Moneysaid the host.

“That said, I think the economy is already pretty weak here, so the pain may be over faster than you expect,” he said.

While the S&P 500 and Nasdaq Composite climbed on Friday, all major indices ended a volatile week of trading. redThe S&P has recorded its worst week since 2020.

“Every time it looks like they’ve made a sale, they’re back immediately,” said Cramer, who on Thursday recommended that investors stop Buy until the market settles down.

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

monday

The market is closed due to Juneteenth, a federal holiday commemorating the end of slavery in the Confederate states.

Tuesday: lenar

  • Q2 2022 earnings release ahead of bell; Conference call at 11 a.m. ET
  • Estimated EPS: $3.95
  • Estimated Revenue: $8.12 billion

Cramer said he wouldn’t be surprised if analysts downgraded the construction company’s stock because homes cost so much.

Wednesday: KB Home. Korn Ferry

KB Home

  • Q2 2022 earnings released after the end; Conference call at 5 p.m. ET
  • Estimated EPS: $2.04
  • Estimated Revenue: $1.65 billion

Cramer said investors should consider buying some of KB Home’s stock if Lenar’s stock doesn’t tank, as it could be drawn to the bottom, Cramer said.

Korn Ferry

  • Q4 2022 earnings release at tbd; Conference Call at 12pm ET
  • Estimated EPS: $1.55
  • Estimated Revenue: $680 million

Cramer said the management consulting firm could provide some insight into whether the Fed’s interest rate hike is affecting labor.

Thursday: Darden’s Restaurant, FedEx

Darden Restaurant

  • Q4 2022 earnings release ahead of bell; 8:30 a.m. conference call ET
  • Estimated EPS: $2.21
  • Estimated Revenue: $2.54 billion

Cramer said he expects disappointing results from Olive Garden and Capital Grill’s parent company due to food and labor inflation and cash-strapped consumers.

fedex

  • Q4 2022 earnings release at 4:15 p.m. ET; Conference call at 5 p.m. ET
  • Estimated EPS: $6.87
  • Estimated Revenue: $24.49 billion

Although he doesn’t expect a good quarter from FedEx, Cramer said he still keeps his interest in the state of e-commerce.

Friday: Carmax

  • Q1 2023 earnings release before bell; Conference call at 9 a.m. ET
  • Estimated EPS: $1.55
  • Estimated Revenue: $9.20 billion

CarMax will have a decent but mediocre set due to the lack of a car, Cramer predicted.