Don’t ‘be a hero’ while the Fed battles inflation

Cramer's week ahead: 'I am urging you not to be a hero' while the Fed battles inflation



Cramer's week ahead: 'I am urging you not to be a hero' while the Fed battles inflation

CNBC’s Jim Cramer on Friday warned investors against adding to their portfolios until the stock market and economy become less volatile.

“This economy is a runaway train; it’s smashed through the Fed’s blockades today, so now they may just blow up the tracks to derail the whole darn thing. When they detonate, it’ll be safe to buy. Until then, I am urging you not to be a hero,” he said.

Cramer warned that he expects central bank officials to stick to their hawkish stance on inflation, adding that the producer price index and consumer price index due next week could shed more light on the state of inflation and the Fed’s next moves.

Stocks tumbled on Friday after the September jobs report signaled that the job market is strengthening despite the central bank’s aggressive interest rate increases.

“There’s always the possibility that this is the last red-hot employment number, in which case the Fed’s tightening into an abyss and the damage could be catastrophic,” he said.

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

Wednesday: PepsiCo

  • Q3 2022 earnings release at 6 a.m. ET; conference call at 8:15 a.m. ET
  • Projected EPS: $1.84
  • Projected revenue: $20.81 billion

Cramer said he’s hoping the company will report that its raw costs are coming down.

Thursday: Delta Airlines, Walgreens Boots Alliance, Domino’s Pizza, BlackRock

Delta Air Lines

  • Q3 2022 earnings release at 6:30 a.m. ET; conference call at 10 a.m. ET
  • Projected EPS: $1.55
  • Projected revenue: $12.90 billion

The company is likely concerned about rising oil prices, Cramer predicted.

Walgreens Boots Alliance

  • Q4 2022 earnings release at 7 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: 77 cents
  • Projected revenue: $32.09 billion

Domino’s Pizza

  • Q3 2022 earnings release at 7:30 a.m. ET; conference call at 10 a.m. ET
  • Projected EPS: $2.98
  • Projected revenue: $1.07 billion

He said that he believes both Walgreens and Domino’s are dealing with worker shortages.

BlackRock

  • Q3 2022 earnings release at 6:15 a.m. ET; conference call at 8:30 a.m ET
  • Projected EPS: $7.64
  • Projected revenue: $4.3 billion

Cramer said he’s betting the company will report great results and that he’d be a buyer of the stock.

Friday: JPMorgan Chase, Wells Fargo, Morgan Stanley, UnitedHealth Group

JPMorgan Chase 

  • Q3 2022 earnings release at 7 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $2.92
  • Projected revenue: $32.13 billion

Wells Fargo 

  • Q3 2022 earnings release at 7 a.m. ET; conference call at 10 a.m. ET
  • Projected EPS: $1.10
  • Projected revenue: $18.76 billion

Morgan Stanley 

  • Q3 2022 earnings release at 7:30 a.m. ET; conference call at 9:30 a.m. ET
  • Projected EPS: $1.52
  • Projected revenue: $13.24 billion

“With employment still red-hot, it’s entirely possible the banks can make a killing here without much risk of bad loans,” Cramer said.

UnitedHealth Group

  • Q3 2022 earnings release at 5:55 a.m. ET; conference call at 8:45 a.m. ET
  • Projected EPS: $5.43
  • Projected revenue: $80.52 billion

While he has faith the quarter will be solid, he expects the stock to decline if the company’s results are short of being perfect.

Disclaimer: Cramer’s Charitable Trust owns shares of Morgan Stanley and Wells Fargo.

Cramer's game plan for the trading week of Oct. 10

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