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Cramer’s week forward: Too much complacency about a stimulus deal


As lawmakers proceed to barter one other stimulus spending measure in Washington, CNBC’s Jim Cramer on Friday continued to advocate that traders put cash into shares of corporations that may develop with out further fiscal assist.

Earlier Friday, the Trump administration, three days after President Donald Trump moved to punt the difficulty till after the election subsequent month, proposed a $1.Eight trillion package deal to counter the $2.2 trillion invoice that House Democrats handed.

The main averages all climbed larger on hopes that a deal is imminent, capping off a week the place the Dow Jones and S&P 500 indexes each grew greater than 3% and the tech-heavy Nasdaq Composite superior greater than 4%.

However, Senate Majority Leader Mitch McConnell, who’s laser-focused on pushing via Trump’s Supreme Court nominee Judge Amy Coney Barrett in a affirmation listening to, stated passing a stimulus package deal to get checks in Americans’ arms and emergency help to distressed companies is “unlikely within the subsequent three weeks.

Because of the continued uncertainty, Cramer is suggesting traders not speculate on divisive talks.

“We’ve had a very big run this week, so I’m concerned there’s a little too much complacency about anything coming from Washington and not enough support or interest in the higher-quality stocks that don’t need any stimulus,” the “Mad Money” host stated. “Those are where you want to go if next week turns out to be the house of pain.”

Cramer gave viewers a have a look at the earnings experiences he has circled on his calendar within the week forward. All projections are based mostly on FactSet estimates:

Tuesday: JP Morgan Chase, Citigroup and Johnson & Johnson

JPMorgan Chase

  • Q3 earnings launch: 7 a.m.; convention name: 8:30 a.m.
  • Projected EPS: $2.23
  • Projected income: $28.22 billion

Citigroup

  • Q3 earnings launch: 8 a.m.; convention name: 10 a.m.
  • Projected EPS: 91 cents
  • Projected income: $17.21 billion

“I don’t see how either bank’s going to put up numbers that make the Street happy,” Cramer stated of Citi and JPMorgan Chase. “The banks are pitiful helpless giants right here because the rates are so low they can’t make any money on their deposits. Plus, they’re facing some incredible real scrutiny from the government and from the Federal Reserve on their dividends [and] their buybacks.”

Johnson & Johnson

  • Q3 earnings launch: 6:45 a.m.; earnings name: 8:30 a.m.
  • Projected EPS: $1.96
  • Projected income: $20.13 billion

“They’ve got a fantastic pipeline, so strong that their potential Covid vaccine may not even be the focus, thank heavens, because it’s not going to make any money off of it,” he stated. “I always regard J&J’s conference call as a well-oiled machine, but I wish the stock hadn’t jumped above $150 ahead of the quarter.”

Wednesday: Bank of America, Wells Fargo, Goldman Sachs, United Health, United Airlines

Bank of America

  • Q3 earnings launch: 6:45 a.m.; convention name: 8:30 a.m.
  • Projected EPS: 49 cents
  • Projected income: $20.79 billion

“Bank of America put up such good numbers last time that it’s become Warren Buffett’s favorite, even if it’s not the market’s favorite,” Cramer stated.

Wells Fargo

  • Q3 earnings launch: 8 a.m.; convention name: 10 a.m.
  • Projected EPS: 44 cents
  • Projected income: $17.99 billion

“The press-shy CEO, Charlie Scharf, should think twice about staying silent, because there are a lot of questions that need to be answered,” he stated, “questions about the turnaround he’s trying to orchestrate, if there even is a turnaround.”

Goldman Sachs

  • Q3 earnings launch: 7:30 a.m.; convention name: 9:30 a.m.
  • Projected EPS: $5.54
  • Projected income: $9.38 billion

“It may not be a great time for the regular banks, but it’s a good time for the investment banks,” the host stated. “Goldman’s stock is fundamentally solid, although that hasn’t meant much in this bedraggled group.”

United Health

  • Q3 earnings launch: earlier than market; convention name: 8:45 a.m.
  • Projected EPS: $3.10
  • Projected income: $63.77 billion

“Regardless of what happens in Washington, I expect a big upside surprise here. I expect a good conference call,” he stated.

United Airlines

  • Q3 earnings launch: aftermarket; convention name: Thursday, 10:30 a.m.
  • Projected losses per share: $7.56
  • Projected income: $2.54 billion

“If we don’t get a stimulus package that includes the airlines, or at least a more limited industry-specific bailout, then you’re going to hear bad things when United talks,” he stated. “It’ll be a very bad call.”

Thursday: Walgreens, Morgan Stanley

Walgreens Boots Alliance

  • This autumn fiscal 2020 earnings launch: 7 a.m.; convention name: 8:30 a.m.
  • Projected EPS: 96 cents
  • Projected income: $34.39 billion

“My hope here is that the company’s lowered expectations to the point where they can finally be beaten,” Cramer stated.

Morgan Stanley

“I can’t for the life of me figure out why the stock trades at only $48 and change,” he stated. “This company’s rapidly becoming less of a broker and more of a financial advisory firm, and I like that a lot.”

Friday: Schlumberger, VF Corp.

Schlumberger

  • Q3 earnings launch: 7 a.m.; convention name: 8:30 a.m.
  • Projected EPS: 12 cents
  • Projected income: $5.41 billion

“If the price of oil keeps running, well then maybe Schlumberger … could bounce, but what a mess,” Cramer stated.

VF Corp

  • Q2 fiscal 2021 earnings launch: 47 cents; convention name: 8:30 a.m.
  • Projected EPS: 47 cents
  • Projected income: $2.48 billion

“I’m also looking at VF Corp when they report, because apparel’s starting to come back,” he stated.

Disclosure: Cramer’s charitable belief owns shares of Goldman Sachs, Johnson & Johnson and JPMorgan Chase.

Disclaimer

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