CNBC’s Jim Cramer told investors on Monday that the Federal Reserve’s actions this week could lead to a bull market.
“If [Fed Chair] Jerome Powell said, ‘we get a 75 basis point rate hike and then we’ll see what happens’ … then you could get a rip-snorting rally,” the “Mad Money” host said.
“On the other hand, if he says we’re doing the triple-rate hike and then we’re ready to keep tightening no matter what, with a possible inter-meeting hike if the CPI stays warm, we’ll definitely go down,” he added. he said, pointing to June’s warmer-than-expected 9.1% inflation reading.
The Federal Reserve concludes its two-day meeting on Wednesday, and many analysts expect a 75 basis point rate hike.
Cramer also took a look at this week’s earnings record. All earnings and earnings estimates are courtesy of FactSet.
Tuesday: General Electric, Alphabet, Microsoft
General Electric
- Q2 2022 earnings release at 6:30 am ET; conference call at 8 am ET
- Expected EPS: 37 cents
- Estimated revenue: $17.36 billion
Cramer said he’s not bullish on GE – yet.
Alphabet
- Q2 2022 earnings release at 4 pm ET; conference call at 5 pm ET
- Expected EPS: $1.27
- Estimated revenue: $69.87 billion
Microsoft
- Q4 2022 earnings release at 4:05 pm ET; conference call at 5:30 pm ET
- Expected EPS: $2.29
- Estimated revenue: $52.39 billion
Cramer said he believes Alphabet and Microsoft could have standout quarters.
Wednesday: Boeing, Meta, Ford, ServiceNow
Boeing
- Q2 2022 earnings release at 7:30 am ET; conference call at 10:30 am ET
- Expected loss: loss of 13 cents per share
- Estimated revenue: $17.57 billion
He said he doubts Boeing will report a solid quarter because of ongoing labor strikes and no federal go-ahead for its 787 Dreamliner commercial jet.
Meta
- Q2 2022 earnings release at 4:05 pm ET; conference call at 5 pm ET
- Expected EPS: $2.55
- Estimated revenue: $28.92 billion
The Meta will likely report an earnings beat and forecast cut, Cramer predicted. “When expectations get low enough, though, for the metaverse, then the stock becomes a solid buy,” he said.
Ford
- Q2 2022 earnings release at 4:05 pm ET; conference call at 5 pm ET
- Expected EPS: 45 cents
- Estimated revenue: $37.20 billion
Cramer believes the automaker will report that it has sold many models.
Service Today
- Q2 2022 earnings release at 4:10 pm ET; conference call at 5 pm ET
- Expected EPS: $1.55
- Estimated revenue: $1.76 billion
“We had CEO Bill McDermott last month and he talked about tougher times in Europe. His stocks took a big hit in response – now we’ll find out if that was an overreaction, ” he says.
Thursday: Apple, Amazon
Apple
- Q3 2022 earnings release at 4:30 pm ET; conference call at 5 pm ET
- Expected EPS: $1.16
- Estimated revenue: $82.73 billion
“It’s yours, don’t trade it,” Cramer said.
Amazon
- Q2 2022 earnings release at 4 pm ET; conference call at 5:30 pm ET
- Expected EPS: 12 cents
- Estimated revenue: $118.98 billion
Cramer said Amazon’s stock price could open “very low” in Tuesday’s open market after Walmart cut its earnings outlook Monday, dragging the e-commerce giant’s stock lower after hours.
Friday: Chevron, Procter & Gamble
Chevron
- Q2 2022 earnings release at tbd time; conference call at 11 am ET
- Expected EPS: $5.08
- Expected income; $58.66 billion
Cramer said he believes Chevron will deliver good results in its most recent quarter, even as analysts are increasingly skeptical of the company’s ability to perform.
Procter & Gamble
- Q4 2022 earnings release at 6:55 am ET; conference call at 9 am ET
- Expected EPS: $1.22
- Estimated revenue: $19.41 billion
“If Procter comes in, I’ll view that as a buying opportunity — after it reports,” Cramer said.
Disclosure: Cramer’s Charitable Trust owns shares of Apple, Alphabet, Amazon, Chevron, Ford, Meta, Microsoft and Procter & Gamble.
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