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Don’t be a hero while the Fed fights inflation

Don't be a hero while the Fed fights inflation
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Cramer's next week: 'I challenge you not to be a hero' as Fed fights inflation

CNBC’s Jim Cramer on Friday warned investors not to add to their portfolios until the stock market and economy becomes less volatile.

“This economy is a runaway train; it’s shattered by the Fed’s lockdown today, so now they can just blow up the tracks to derail the whole damn thing. When they explode, it will be safe to buy. Until then, I urge you don’t want to be a hero,” he said.

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

Stocks tumbled on Friday after the September jobs report signaled the job market was picking up despite the central bank’s aggressive rate hikes.

“There’s always a chance that this will be the last red-hot jobs number, in which case the Fed’s tightening is headed for a cliff and the damage could be catastrophic,” he said.

Cramer also previewed next week’s paytable. All earnings and revenue estimates were provided by FactSet.

Wednesday: PepsiCo

  • Q3 2022 results release at 6:00 am ET; Conference call at 8:15 a.m. ET
  • Estimated earnings per share: $1.84
  • Estimated Revenue: $20.81 billion

Cramer said he hopes the company will report that its raw costs are falling.

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

Delta Airlines

  • Q3 2022 results release at 6:30am ET; Conference call at 10 a.m. ET
  • Estimated earnings per share: $1.55
  • Estimated Revenue: $12.90 billion

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

Walgreen’s Boots Alliance

  • Q4 2022 results release at 7:00 am ET; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: 77 cents
  • Estimated Revenue: $32.09 billion

Domino’s Pizza

  • Q3 2022 results release at 7:30am ET; Conference call at 10 a.m. ET
  • Estimated earnings per share: $2.98
  • Estimated Revenue: $1.07 billion

He said he believes both Walgreens and Domino’s are facing labor shortages.

BlackRock

  • Q3 2022 results release at 6:15 am ET; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: $7.64
  • Estimated sales: $4.3 billion

Cramer said he was confident the company would report great results and that he would be a buyer of the stock.

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

JPMorgan Chase

  • Q3 2022 results release at 7:00 am ET; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: $2.92
  • Estimated Revenue: $32.13 billion

Wells Fargo

  • Q3 2022 results release at 7:00 am ET; Conference call at 10 a.m. ET
  • Estimated earnings per share: $1.10
  • Estimated Revenue: $18.76 billion

MorganStanley

  • Q3 2022 results release at 7:30am ET; Conference call at 9:30 a.m. ET
  • Estimated earnings per share: $1.52
  • Estimated Revenue: $13.24 billion

“With employment still being hot, there’s a good chance the banks could make a fortune here without much risk of bad loans,” Cramer said.

United Health Group

  • Q3 2022 results release at 5:55am ET; Conference call at 8:45 a.m. ET
  • Estimated earnings per share: $5.43
  • Estimated Revenue: $80.52 billion

While he’s confident the quarter will be solid, he expects the stock to fall if the company’s results aren’t perfect.

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

Cramer's game plan for the trading week of 10.10

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