CNBC’s Jim Cramer told investors Monday that the Federal Reserve’s action this week could trigger a bull run.
“If [Fed Chair] ‘We’re getting a 75 basis point increase and then we’ll see what happens,’ says Jerome Powell.
“On the other hand, if he says we’re doing a triple-rate hike and then we’re prepared to continue vigorously, no matter what, including a possible inter-meeting hike, if the CPI remains warm, we’re sure.” are going down,” he said, referring to June’s warmest-than-expected 9.1% inflation reading.
The Federal Reserve will conclude its two-day meeting on Wednesday, and many analysts expect an increase of 75 basis points.
Cramer also previewed this week’s earnings slate. All earnings and revenue estimates courtesy of FactSet.
Tuesday: General Electric, Alphabet, Microsoft
- Q2 2022 earnings release at 6:30 AM ET; Conference call at 8 a.m. ET
- Estimated EPS: 37 cents
- Estimated Revenue: $17.36 billion
Cramer said he is not yet bullish on GE.
- Q2 2022 earnings release at 4 p.m. ET; Conference call at 5 p.m. ET
- Estimated EPS: $1.27
- Estimated Revenue: $69.87 billion
- Q4 2022 earnings release at 4:05 p.m. ET; Conference call at 5:30 p.m. ET
- Estimated EPS: $2.29
- Estimated Revenue: $52.39 billion
Cramer said he believes both Alphabet and Microsoft can have standout quarters.
Wednesday: Boeing, Meta, Ford, Service Now
- Q2 2022 earnings release at 7:30 AM ET; Conference call at 10:30 a.m. ET
- Estimated loss: Loss of 13 cents per share
- Estimated Revenue: $17.57 billion
He said he doubts the Boeing 787 Dreamliner will report a solid quarter because of the ongoing worker strike and no federal approval for the commercial jet.
- Q2 2022 earnings release at 4:05 p.m. ET; Conference call at 5 p.m. ET
- Estimated EPS: $2.55
- Estimated Revenue: $28.92 billion
Cramer predicted, Meta will likely report an earnings beat and a cut in the forecast. “Once expectations drop significantly, however, for the metaverse, the stock becomes a solid buy,” he said.
- Q2 2022 earnings release at 4:05 p.m. ET; Conference call at 5 p.m. ET
- Estimated EPS: 45 cents
- Estimated Revenue: $37.20 billion
Cramer believes the carmaker will report that it has sold out several models.
- Q2 2022 earnings release at 4:10 p.m. ET; Conference call at 5 p.m. ET
- Estimated EPS: $1.55
- Estimated Revenue: $1.76 billion
“We had CEO Bill McDermott last month and he talked about tough times in Europe. His stock was hit hard in response – now we’ll find out if that was an overstatement,” he said.
Thursday: Apples, Amazon
- Q3 2022 earnings release at 4:30 p.m. ET; Conference call at 5 p.m. ET
- Estimated EPS: $1.16
- Estimated Revenue: $82.73 billion
“Own it, don’t trade it,” Cramer said.
- Q2 2022 earnings release at 4 p.m. ET; Conference call at 5:30 p.m. ET
- Estimated EPS: 12 cents
- Estimated Revenue: $118.98 billion
Cramer said Amazon’s stock price could open “very low” on Tuesday after Walmart Its cut profit outlook Monday, the e-commerce giant’s stock is dragging down after hours.
Friday: Chevron, Procter & Gamble
- Q2 2022 earnings tbd released on time; Conference call at 11 a.m. ET
- Estimated EPS: $5.08
- estimated revenue; $58.66 billion
Cramer said he believes Chevron will deliver great results in its latest quarter, even though analysts continue to doubt the company’s ability to perform.
- Q4 2022 earnings release at 6:55 AM ET; Conference call at 9 a.m. ET
- Estimated EPS: $1.22
- Estimated Revenue: $19.41 billion
“If Proctor comes through, I’ll treat it as a buying opportunity — though after it’s reported,” Cramer said.
Disclosure: Cramer’s Charitable Trust owns shares in Apple, Alphabet, Amazon, Chevron, Ford, Meta, Microsoft and Procter & Gamble.