CNBC’s Jim Cramer said Friday that FedEx’s warning of deteriorating economic conditions indicates that the Federal Reserve is doing better on its inflation efforts than expected — meaning the central bank could back down after its meeting next week.
“If Fed Chairman Jay Powell watches our interview last night… he may find that he has made more progress in beating inflation than he may realize,” Cramer said.
“Maybe Powell hits us with another 75 basis points lift here and then says maybe it’s time to take a more thoughtful approach in order to assess how things are going,” he added.
The “Mad Money” host’s comments came after FedEx, a leading industry leader in the state of the economy, warned Thursday of plunging global shipments and an impending global recession.
Stocks closed lower on Friday as Wall Street digested the news, and the major averages posted their fourth week of losses in the past five weeks.
Cramer also reviewed the earnings list for the coming week. All earnings and revenue estimates are provided by FactSet.
- Q4 2022 earnings announcement at 6:55 a.m. ET; Conference call at 10 a.m. ET
- Expected EPS: $38.5
- Expected revenue: $5.16 billion
Cramer said he’s interested to see if company officials see an end to the car shortage.
- GTC Financial Analyst Q&A at 1 PM ET
Cramer said he’s sticking with Nvidia despite the recent plunge in stocks. “This is how Nvidia behaves – you get horribly fast moves followed by long rallies.”
Wednesday: General Mills, Sales Force, Lenar, KP Homes
- First Quarter 2023 Earnings Announcement at 7 AM ET; Conference call at 9 a.m. ET
- Expected EPS: $1
- Expected revenue: $4.72 billion
The company will likely be the winner because it is the best food stock in an uncertain economic environment, Kramer predicted.
- Investor Day at 4pm ET
Cramer said that while he doesn’t expect to hear anything that could motivate him to buy the stock, he remains optimistic about the long-term.
- Announcement of third-quarter 2022 earnings at 4:30 p.m. ET; Conference call Thursday at 11 a.m. ET
- Expected EPS: $4.86
- Expected revenue: $8.97 billion
- release of Q3 2022 earnings between 4:10 to 4:20 p.m. ET; Conference call at 5 p.m. ET
- Expected EPS: $2.66
- Expected revenue: $1.88 billion
Cramer said he expects both Lenar and KB Home to be weak due to higher mortgage rates.
Thursday: Costco, FedEx, Qualcomm
- release of Q4 2022 earnings at 4:15 p.m. ET; Conference call at 5 p.m. ET
- Expected EPS: $4.17
- Expected revenue: $70.8 billion
Cramer said he hopes the stock will fall so the investment club can buy more.
Cramer said that while the company may reveal more information about the fourth quarter, it likely won’t change course because it already reported disappointing results in its initial announcement.
- Auto Investor Day at 3 p.m. ET
Cramer said the company will showcase the “new Qualcomm” during the event.
Disclaimer: Cramer’s Charitable Trust owns shares in Costco, Salesforce, Nvidia and Qualcomm.