Cramer's Week Ahead: Market Needs Weak Retail Sales Data to Stay Strong

Cramer’s Week Ahead: Market Needs Weak Retail Sales Data to Stay Strong

What matters next week is inflation, says Jim Cramer

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.”

investment related news

The stock market rally will be tested in the week ahead, after falling yields and tech surges

CNBC Pro
The stock market rally will be tested in the week ahead, after falling yields and tech surges

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.

Cramer's game plan for the November 14 trading week

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.

#Cramers #Week #Ahead #Market #Weak #Retail #Sales #Data #Stay #Strong

Leave a Comment

Your email address will not be published. Required fields are marked *