Home Breaking News Cramer’s week ahead: February jobs report could trigger a ‘tsunami of selling’

Cramer’s week ahead: February jobs report could trigger a ‘tsunami of selling’

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Cramer’s week ahead: February jobs report could trigger a ‘tsunami of selling’

CNBC’s Jim Cramer said that he was encouraged by the trading activity he saw in tech and reveal shares as the market on Friday persevered to grapple with fears that inflation is on the upward push.

He warned, nevertheless, that investors may aloof be prepared for how the market may respond to the February labor report place to release at the tip of subsequent week.

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“If we earn any energy here at all, any energy, please brace your self for another tsunami of selling as pastime rates drag greater and shares drag lower,” the “Mad Cash” host said, forecasting that a key pastime rate measure within the bond market would shoot up. “With out an gruesome place of numbers, the reveal shares are in effort.”

Cramer made the feedback after the market closed lower for its 2nd-straight week as selling within the bond market spilled over into shares.

The Dow Jones Industrial Average dropped nearly 470 aspects Friday to carry out 1.5% lower at 30,932.37. The index also accomplished the week down 1.78%.

The S&P 500 slid 0.48% to three,811.15, down 2.45% this week.

Despite ending the day up 0.56%, the tech-heavy Nasdaq Composite suffered probably the most this week after declining almost 5% to 13,192.345. Friday’s upward push was driven by a rebound in Vast Tech shares.

“I acquire no longer know if the reveal names can withstand the pain, but today’s session did give us a glimmer of hope that they can aloof wrack up some gains, even within the midst of an inflation scare,” Cramer said. “While you acquire no longer adore the pain … you could want to spend moments adore this within the Nasdaq, take some profits and earn ready for a swoon into Friday and be ready to retract shares adore Costco.”

The yield on the 10-year U.S. Treasury, which is a key measure for pastime rates on client loans, fell near 1.4% on Friday after breaching 1.6% the day prior for the first time in about a year. The upward push was driven by bond selling.

When rates tumble, the gargantuan industrial shares lose momentum, as evident within the decline within the Dow, but climb in cloud, semiconductor and cyber-security shares was a definite, Cramer said.

Bond investors trimming their holdings are having a wager that the Federal Reserve could change its mind and raise the federal funds rate from near-zero ranges as the financial system rebounds from the pandemic-caused recession, he added.

“Inflation is a nightmare for folks that maintain bonds. Who wants a part of paper that pays 1.5% when inflation could break 2%? You’re losing everyday,” Cramer said. “That’s why these individuals have been dumping bonds, and their wholesale selling always smashes the inventory market.”

Cramer gave his game plan for the week ahead. Earnings-per-share projections are based on FactSet estimates:

Monday: Zoom Video, Lemonade

Zoom Video

  • Q4 2021 earnings release: after market; conference call: 5 p.m.
  • Projected EPS: 81 cents
  • Projected revenue: $910 million

Lemonade

  • Q4 earnings release: after market; conference call: 8: a.m.
  • Projected losses per share: 64 cents
  • Projected revenue: $19.2 million

Tuesday: Target, Nordstrom

Target

  • Q4 earnings release: earlier than market; conference call: 9 a.m.
  • Projected EPS: $2.54
  • Projected revenue: $27.4 billion

Nordstrom

  • Q4 earnings release: after market; conference call: 4: 45 p.m.
  • Projected EPS: 14 cents
  • Projected revenue: $3.58 billion

Wednesday: Dollar Tree, Wendy’s, American Eagle Outfitters

Dollar Tree

  • Q4 earnings release: earlier than market; conference call: 9 a.m.
  • Projected EPS: $2.12
  • Projected revenue: $6.8 billion

Wendy’s

  • Q4 earnings release: earlier than market; conference call: 8: 30 a.m.
  • Projected EPS: 18 cents
  • Projected revenue: $477 million

American Eagle Outfitters

  • Q4 earnings release: 4: 15 p.m.; conference call: 4: 30 p.m.
  • Projected EPS: 36 cents
  • Projected revenue: $1.28 billion

Snowflake

  • Q4 earnings release: after market; conference call: 5 p.m.
  • Projected losses per share: 16 cents
  • Projected revenue: $332 million

Thursday: Kroger, Costco

Kroger

  • Q4 earnings release: earlier than market; conference call: 10 a.m.
  • Projected EPS: 69 cents
  • Projected revenue: $30.86 billion

Costco

  • Q2 2021 earnings release: 4: 15 p.m.; conference call: 5 p.m.
  • Projected EPS: $2.44
  • Projected revenue: $43.72 billion

Disclosure: Cramer’s charitable belief owns shares of Costco.

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Correction: This article has been updated to accurately reflect that the projected revenue for Zoom Video is $910 million, and Lemonade’s projected revenue is $19.2 million. A old version of this narrative gave an wrong projection for both.

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Cramer’s week ahead: February jobs report could trigger a ‘tsunami of selling’