CNBC’s Jim Cramer warned investors Friday not to add to their portfolios until the stock market and economy become less volatile.
“This economy is a runaway train, it crashed into the Federal Reserve lockups today, so now they can blow up the tracks to derail the whole damn thing. When they blow up, it’ll be safe to buy. Until then, I urge you not to be a hero,” he said.
Cramer warned that he expects central bank officials to stick to their aggressive stance on inflation, adding that next week’s Producer Price Index and Consumer Price Index could shed more light on the state of the economy. inflation and the next moves of the Fed.
Stocks fell on Friday after the September jobs report noted that the labor market is strengthening despite aggressive interest rate hikes by the central bank.
“There is always the possibility that this is the latest red-hot jobs number, in which case the Fed is plunging into an abyss and the damage could be catastrophic,” he said.
Cramer also previewed next week’s earnings list. All earnings and revenue estimates courtesy of FactSet.
Wednesday: PepsiCo
- Third Quarter 2022 Earnings Release at 6 am ET; conference call at 8:15 am ET
- Projected EPS: $1.84
- Projected revenue: $20.81 billion
Cramer said he expects the company to report that its gross costs are going down.
Thursday: Delta Airlines, Walgreens Boots Alliance, Domino’s Pizza, BlackRock
- Third Quarter 2022 Earnings Release at 6:30 am ET; conference call at 10 am ET
- Projected EPS: $1.55
- Projected revenue: $12.90 billion
The company is likely to be worried about rising oil prices, Cramer predicted.
- Fourth Quarter 2022 Earnings Release at 7 am ET; conference call at 8:30 am ET
- Projected EPS: 77 cents
- Projected revenue: $32.09 billion
- Third Quarter 2022 Earnings Release at 7:30 am ET; conference call at 10 am ET
- Projected EPS: $2.98
- Projected revenue: $1.07 billion
He said he thinks both Walgreens and Domino’s are dealing with worker shortages.
- Third Quarter 2022 Earnings Release at 6:15 am ET; conference call at 8:30 am ET
- Projected EPS: $7.64
- Projected revenue: $4.3 billion
Cramer said he is betting the company will report strong results and that he would buy the stock.
Friday: JPMorgan Chase, Wells Fargo, Morgan Stanley, UnitedHealth Group
- Third Quarter 2022 Earnings Release at 7 am ET; conference call at 8:30 am ET
- Projected EPS: $2.92
- Projected revenue: $32.13 billion
- Third Quarter 2022 Earnings Release at 7 am ET; conference call at 10 am ET
- Projected EPS: $1.10
- Projected revenue: $18.76 billion
- Third Quarter 2022 Earnings Release at 7:30 am ET; conference call at 9:30 am ET
- Projected EPS: $1.52
- Projected revenue: $13.24 billion
“With employment still red hot, it’s entirely possible that the banks could make a killing here without much risk of bad loans,” Cramer said.
- Third Quarter 2022 Earnings Release at 5:55 am ET; conference call at 8:45 am ET
- Projected EPS: $5.43
- Projected revenue: $80.52 billion
While he has faith that the quarter will be strong, he expects the stock to drop if the company’s results fall short of perfect.
Disclaimer: Cramer’s Charitable Trust owns Morgan Stanley and Wells Fargo stock.
