The stock market’s current run could slump if October retail sales data arrives at the right time next week, CNBC’s Jim Cramer warned on Friday.
“If we see weak retail sales and learn that things are getting very promotional in the key apparel sector, well, the market may stay strong,” he said, adding, “More trade from retail deteriorates, the less damage the Fed has to do before they declare victory.”
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Stocks rose on Friday following softer-than-expected October Consumer Price Index data released the day before, which raised investor hopes that the Federal Reserve will ease its pace of raising interest rates. ‘interest. The benchmark S&P 500 index ended its best week since June.
Earnings reports from the nation’s largest retailers take center stage next week, as does retail sales data for October.
“While I want retail stocks to do well, oddly enough I have to look for a low number [from the October report] with little inflation for that to happen,” Cramer said.
He also previewed next week’s earnings list. All earnings and income estimates are courtesy of FactSet.
Tuesday: Walmart, Home Depot
walmart
- Third Quarter 2023 Earnings Release at 7:00 a.m. ET; conference call at 8 a.m. ET
- Projected EPS: $1.32
- Projected revenue: $147.67 billion
Cramer said the economy was soft enough that shoppers were starting to dip, which is good news for Walmart.
Home deposit
- Third Quarter 2022 Earnings Release at 6:00 a.m. ET; conference call at 9 a.m. ET
- Projected EPS: $4.12
- Projected revenue: $37.94 billion
Wednesday: Lowe’s, TJX, Target, Nvidia
Lowe’s
- Third Quarter 2022 Earnings Release at 6:00 a.m. ET; conference call at 9 a.m. ET
- Projected EPS: $3.09
- Projected revenue: $23.14 billion
Cramer said Lowe’s and Home Depot are likely winning because of home renovations, but he doesn’t expect neighborhoods from either company to knock them out of the park.
TJX
- Third Quarter 2023 Earnings Release at 9:30 a.m. ET; conference call at 11 a.m. ET
- Projected EPS: 80 cents
- Projected revenues; $12.30 billion
TJX stock is “the best of the best for this particular moment,” he said.
Target
- Third Quarter 2022 Earnings Release at 6:30 a.m. ET; conference call at 8 a.m. ET
- Projected EPS: $2.16
- Projected revenue: $26.41 billion
He said he believed in Target.
Nvidia
- Third Quarter 2023 Earnings Release at 3:20 p.m. ET; conference call at 5 p.m. ET
- Projected EPS: 71 cents
- Projected revenue: $5.8 billion
Cramer said he fears semiconductor players will experience a short-coverage rally rather than a sustained rally.
Thursday: Kohl’s, Gap, Palo Alto Networks
Kohls
- Third Quarter 2022 Earnings Release at 7:00 a.m. ET; conference call at 9 a.m. ET
- Preliminary EPS: 82 cents
- Preliminary revenue: $4.05 billion
Difference
- Third Quarter 2022 Earnings Release at 4:15 p.m. ET; conference call at 5 p.m. ET
- Projected EPS: $0
- Projected revenue: $3.81 billion
Cramer said he wasn’t interested in Kohl’s and Gap’s stock.
Palo Alto Networks
- First Quarter 2023 Earnings Release at 4:05 p.m. ET; conference call at 4:30 p.m. ET
- Projected EPS: 69 cents
- Projected revenue: $1.55 billion
He said he recommended buying the stock if it dipped before the earnings release.
Friday: Foot locker
- Third Quarter 2022 Earnings Release at 6:45 a.m. ET; conference call at 9 a.m. ET
- Projected EPS: $1.14
- Projected revenue: $2.10 billion
Cramer said he bet CEO Mary Dillon had a plan to improve Foot Locker’s performance.
Disclaimer: Cramer’s Charitable Trust owns shares of TJX and Nvidia.
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