CNBC’s Jim Cramer warned investors on Friday to add to their portfolios until the stock market and economy become less volatile.
“This economy is a runaway train; today it’s torn apart by the Fed’s lockdowns, so now they can blow up the rails to derail the whole damn thing. When they blow up, it’ll be safe to buy it. Until then, I urge you not to be a hero,” he said.
On inflation, Cramer warned that he expected central bank officials to stick to their hawkish stance, adding that next week’s producer price index could shed more light on inflation and the Fed’s next steps.
Stocks fell on Friday after the September jobs report showed the labor market strengthened despite the central bank’s aggressive rate hikes.
“There’s always the possibility that this could be the last tepid employment number, in which case the Fed could be pushed to the brink and the damage could be catastrophic,” he said.
Cramer also previewed next week’s earnings chart. All earnings and revenue estimates are courtesy of FactSet.
Wednesday: PepsiCo
- 3Q2022 earnings release at 6 a.m. ET; Conference call at 8:15 a.m. ET
- Projected EPS: $1.84
- Estimated revenue: $20.81 billion
Cramer said he expects the company to report lower raw material costs.
Thursday: Delta Airlines, Walgreens Boots Alliance, Domino’s Pizza, BlackRock
- Q3 2022 earnings release at 6:30 AM ET; conference call at 10 a.m. ET
- Projected EPS: $1.55
- Estimated revenue: $12.90 billion
According to Cramer’s prediction, the company is likely worried about rising oil prices.
- 2022Q4 earnings release on 7th ET; Conference call at 8:30 a.m. ET
- Projected EPS: 77 cents
- Estimated revenue: $32.09 billion
- Q3 2022 earnings release at 7:30 AM ET; conference call at 10 a.m. ET
- Projected EPS: $2.98
- Estimated revenue: $1.07 billion
He said he believes both Walgreens and Domino’s are facing labor shortages.
- Q3 2022 earnings release at 6:15 AM ET; Conference call at 8:30 a.m. ET
- Projected EPS: $7.64
- Projected revenue: $4.3 billion
Cramer said he is betting the company will deliver excellent results and become a buyer of the stock.
Friday: JPMorgan Chase, Wells Fargo, Morgan Stanley, UnitedHealth Group
- Q3 2022 earnings release at 7 AM ET; Conference call at 8:30 a.m. ET
- Projected EPS: $2.92
- Estimated revenue: $32.13 billion
- Q3 2022 earnings release at 7 AM ET; conference call at 10 a.m. ET
- Projected EPS: $1.10
- Estimated revenue: $18.76 billion
- Q3 2022 earnings release at 7:30 AM ET; Conference call at 9:30 a.m. ET
- Projected EPS: $1.52
- Estimated revenue: $13.24 billion
“While employment is still tepid, it’s entirely possible that banks are making a killing here without the risk of bad loans,” Cramer said.
- Q3 2022 earnings release at 5:55 a.m. ET; Conference call at 8:45 a.m. ET
- Projected EPS: $5.43
- Estimated revenue: $80.52 billion
While he believes the quarter will be solid, he expects the stock to decline if the company’s results aren’t stellar.
Disclaimer: Cramer’s Charitable Trust owns shares of Morgan Stanley and Wells Fargo.
