Kramer’s Week Awaiting: Prepare for Negativity

Jim Kramer of CNBC on Friday advised investors to prepare for Wall Street’s negativity next week as concerns mount over a possible recession.

“I think our economy is heading for a slowdown – and that’s exactly what price increases are doing. But the slowdown doesn’t necessarily translate into a horrific recession that collapses… that ends in a full-blown recession,mad money‘ said the host.

He later added, “No matter what happens next week, Wall Street will still be on good news, bad news. … So, maybe you should be prepared to face the negativity.”

The main parts of the treasury return upside down This week, raising fears that the economy is heading into a recession. Historically, yield curve inversions have preceded recessions but are not foolproof indicators.

The Dow Jones Industrial Average rose 0.4% on Friday While the S&P 500 rose 0.34%. The Nasdaq rose 0.29%.

Kramer also reviewed the list of companies that will announce their quarterly earnings next week, as well as other market-related events.

All profit and revenue estimates are provided by FactSet.

Monday: US Census Bureau durable goods report

• Report release at 10:00 a.m. ET

“If it’s strong, I can tell you it’s going to be announced as the last good number” of a course in its last phase, Kramer said. “If it’s bad, it will be the first bad number at the end of the world.”

Tuesday: Equity Brands, Greenbrier Companies

glamorous brands

• Announcement of Q2 2022 earnings at 6 a.m. ET; Conference call at 8 a.m. ET
• Expected EPS: $2.38
• Expected revenue: $885 million

“Last time, they did a good job, but thanks to the inverted yield curve, this time if they say things are going well, they will be labeled as hopeless optimists on their conference call unless they tell a really depressing story,” Kramer said.

Greenbrier Companies

• Announcement of earnings for the second quarter of 2022; Conference call on Wednesday at 11 a.m. ET
• Expected EPS: 19 cents
• Expected revenue: $576 million

Kramer said he will keep “low freight rates” into account when reviewing the company’s earnings. “I don’t think it’s a dip in customer demand, but the supply of drivers is going up,” he said.

Wednesday: March Fed meeting notes, Levi Strauss

Federal Reserve

• March 15-16 Minutes of the meeting are issued at 2 pm ET

“These observations come from before the collapse in transport prices, and this is something that could reduce inflation on its own. … Keep in mind that [the minutes are] Kramer said.

Levi Strauss

• Announcement of earnings for the first quarter of 2022; Conference call at 5 p.m. ET
• Expected EPS: 42 cents
• Expected revenue: $1.55 billion

Cramer said he was interested to know if the rising cost of cotton had affected overall profit margins for Lévi-Strauss.

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.

Constellation brands

• Announcing Q4 2022 earnings before the bell; Conference call at 10:30 a.m. ET
• Expected EPS: $2.09
• Expected revenue: $2.02 billion

Conagra Brands

• Announcing Q3 2022 earnings at 7:30 a.m. ET; Conference call at 9:30 a.m. ET
• Expected EPS: 58 cents
• Expected revenue: $2.84 billion

Friday: North American rig count Baker Hughes

• Released at 1pm ET every week

“Oils are arguably the last strong group left besides slack-resistant utilities, and they’d love to be able to make a lot of money cutting production,” Kramer said.