CNBC’s Jim Cramer on Friday advised investors to brace themselves for Wall Street’s negativity next week amid concerns over a possible deepening recession.
“I believe our economy is headed for a slowdown – that’s what rate hikes do. But a slowdown doesn’t necessarily mean a terrible crash-landing recession. … There are many ways this situation can play out that doesn’t end up in a full-blown recession,” the Mad Money host said.
“Regardless of what happens next week, Wall Street will remain in good news bad news mode. … So maybe you should brace yourself against the negativity,” he later added.
Significant portions of the Treasury yield have reversed this week, raising concerns that the economy is headed for a recession. Yield curve inversions have historically preceded recessions, but are not guaranteed indicators.
The Dow Jones Industrial Average rose 0.4% on Friday, while the S&P 500 gained 0.34%. The Nasdaq rose 0.29%.
Cramer also previewed the list of companies reporting quarterly earnings next week, as well as other market-related events.
All earnings and revenue estimates were provided by FactSet.
Monday: US Census Bureau Durable Goods report
- Report release at 10:00 am ET
“When it’s strong, I can tell you it’s pronounced as the last good number” of a cycle in its final throes, Cramer said. “If it’s bad, it’ll be the first bad number of the apocalypse.”
Tuesday: Acuity Brands, Greenbrier Companies
- Q2 2022 results release at 6:00 am ET; Conference call at 8 p.m. ET
- Estimated earnings per share: $2.38
- Estimated sales: $885 million
“They did well last time, but thanks to the inverted yield curve, this time when they say things are good they get branded hopeless optimists on their conference call unless they tell a really depressing story,” Cramer said .
- earnings release Q2 2022; Conference call Wednesday at 11 a.m. ET
- Estimated earnings per share: 19 cents
- Estimated Revenue: $576 million
Cramer said he will keep “falling freight rates” in mind when reviewing the company’s earnings. “I don’t think customer demand is going down, but the supply of drivers is going up,” he said.
Wednesday: Federal Reserve March Meeting Notes, Levi Strauss
- Posting of meeting minutes March 15-16 at 2pm ET
“These notes are from before the collapse in transportation rates, and that is something that alone can bring down inflation. … Remember [the minutes are] old,” Cramer said.
- earnings release Q1 2022; Conference call at 5:00 p.m. ET
- Estimated earnings per share: 42 cents
- Estimated Revenue: $1.55 billion
Cramer said he was interested in finding out whether rising cotton prices have impacted Levi Strauss’ gross margin.
Thursday: Constellation Brands, Conagra Brands
Cramer said he liked the juxtaposition of the two brands: Constellation’s brands include names like Corona and Mi Campo, while Conagra’s portfolio includes brands like Slim Jim and Earth Balance.
- Q4 2022 earnings release before the bell; Conference call at 10:30 a.m. ET
- Estimated earnings per share: $2.09
- Estimated Revenue: $2.02 billion
- Q3 2022 results release at 7:30am ET; Conference call at 9:30 a.m. ET
- Estimated earnings per share: 58 cents
- Estimated Revenue: $2.84 billion
Friday: Baker Hughes’ North American rig count
- Releases weekly at 1:00 p.m. ET
“The oils are arguably the last strong group left aside from the recession-proof utilities, and they love that they can make a lot of money by holding back production,” Cramer said.