Jim Cramer’s week ahead: Earnings and economic data should give clues on Fed policy

of cnbc Jim Cramer Friday looked ahead to next week’s earnings and economic data calendar, which will provide new insight on Wall Street’s primary concern: whether the Federal Reserve’s interest rate-hike campaign will drive the US into recession.

“We want the Fed to talk a big game without actually needing to do too much,” Cramer said on Friday’s episode of “Mad Money.” “Talk is better than action. We want [Fed Chair Jerome Powell] To scare the economy into slowing down under its own weight. We don’t want endless rate hikes… that will destroy everything in its path.”

Related Investment News

Cramer’s comments came after the stock market wrapped up the week on Friday, with the S&P 500 now down 5.6% in December. The decline comes as investors are increasingly concerned that the US economy will enter a recession next year. On Wednesday, the Fed increased interest rates by half a percentage point their highest level in 15 years,

All estimates for earnings, revenue and economic data are courtesy of FactSet.

general mills

• Earnings before the bell for the second quarter of 2023; Conference Call at 9 PM ET
• Estimated EPS: $1.06
• Estimated Revenue: $5.19 billion

General Mills earnings have a tough setup, Cramer said, as shares are up 29% despite a brutal year for the market overall. He said the company has been able to raise prices because its cereal brands are loved.

fedex

• earnings after Q2 2023 closing; Conference Call at 5:30 PM ET
• Estimated EPS: $2.82
• Estimated Sales: $23.70 billion

Last time FedEx reported, it detailed significant cost-cutting plans that should help boost profitability. Cramer said that for any investor who thinks the Federal Reserve may not ultimately raise interest rates as high as it projects, the post-earnings selloff could create an opportunity to buy FedEx shares.

Nike

• Q2 2023 Earnings at 4:15 PM ET; Conference Call at 5 PM ET
• Estimated EPS: 65 cents
• Estimated Sales: $12.58 billion

Nike has received a spate of analyst upgrades recently, which Cramer said is likely because analysts are trying to exit before the full-scale reopening of the Chinese economy. “I think they’re going to be right,” he said.

Carnival Corporation

• Q4 2022 Earnings Released Ahead of Opening; Conference Call at 10 AM ET
• Estimated loss: Loss of 88 cents per share
• Estimated revenue: $3.9 billion

Spending on experiences has remained resilient despite concerns of an economic downturn, and Cramer said he expects Carnival management to still be bullish.

ribbon

• Earnings before the bell for the second quarter of 2023; Conference Call at 10 AM ET
• Estimated EPS: $3.03
• Estimated sales: $2.13 billion

Cramer said the business services company is an interesting barometer for the overall state of small and medium-sized enterprises. Cramer said, “If Syntus says trade is better than ever,” it could suggest the Fed will need to stay aggressive.

micron technology

• Earnings after Q1 2023 closing; Conference Call at 4:30 PM ET
• Estimated Loss: Loss of 1 cent per share
• Estimated revenue: $4.14 billion

Cramer said he’ll be listening closely to what the memory chipmaker has to say about inventory levels. If Micron indicates there’s still a glut, Cramer said the semiconductor stock could massively see another leg down. “I think the most likely outcome will be a glut, and you’ll see a lot of chip stocks for sale on Thursday.”

paychex

• Ahead of 2023 Q2 Earnings Open; Conference Call at 9:30am ET
• Estimated EPS: 95 cents
• Estimated Sales: $1.19 billion

Cramer said he thinks Paychex is a better small and medium-sized business barometer than Cintas. But like Cintas, Cramer said that if Paychex talks about a healthy business environment, it could mean the Fed may need to issue a few more half-percentage point rate hikes.

carmax

• Earnings before the bell for the third quarter of 2023; Conference Call at 9 PM ET
• Estimated EPS: 73 cents
• Estimated Revenue: $7.34 billion

From an inflation and Fed-policy perspective, Cramer said CarMax is another company to expect given that sales are weak and prices are coming down.