How Powell and the Fed may react to FedEx warning

CNBC’s Jim Cramer said on Friday that fedexThe warning of deteriorating economic conditions suggests the Federal Reserve is doing better than expected in its inflation effort, meaning the central bank could take a step back after its meeting next week.

“If Fed Chief Jay Powell watched our interview last night … he might find he’s made more headway on inflation than he realizes,” Cramer said.

“Maybe Powell will hit us with another 75 basis point hike here and then say maybe it’s time to take a more measured approach in order to assess how things are going,” he said. -he adds.

There “mad moneyThe host’s comments came after FedEx, an economic condition indicator company, warned on Thursday of a drop in global shipments And one impending global recession.

Stocks closed on Friday as Wall Street digested the news, with major averages posting their fourth losing week in the past five weeks.

Cramer also previewed next week’s earnings slate. All earnings and income estimates are courtesy of FactSet.

Monday: Auto area

  • Fourth Quarter 2022 Earnings Release at 6:55 a.m. ET; conference call at 10 a.m. ET
  • Projected EPS: $38.5
  • Projected revenue: $5.16 billion

Cramer said he wanted to know if company officials see an end to the car shortage.

Tuesday: Nvidia

  • GTC Financial Analyst Q&A at 1 p.m. ET

Cramer said he is staying with Nvidia despite recent title drops. “That’s how Nvidia behaves – you get incredibly fast descents followed by long rallies.”

Wednesday: General Mills, Salesforce, Lennar, KB Homes

General Mills

  • First Quarter 2023 Earnings Release at 7:00 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $1
  • Projected revenue: $4.72 billion

The company will likely be a winner as it is a prime food stock in an uncertain economic environment, Cramer predicted.

Selling power

  • Investor Day at 4 p.m. ET

Cramer said while he doesn’t expect to hear anything that might motivate him to buy the stock, he’s still bullish over the long term.

Lennar

  • Third Quarter 2022 Earnings Release at 4:30 p.m. ET; conference call on Thursdays at 11 a.m. ET
  • Projected EPS: $4.86
  • Projected revenue: $8.97 billion

Knowledge base home

  • Release of third quarter 2022 results between 4:10 p.m. and 4:20 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $2.66
  • Projected revenue: $1.88 billion

Cramer said he expects Lennar and KB Home to be soft due to soaring mortgage rates.

Thursday: Costco, FedEx, Qualcomm

Costco

  • Fourth Quarter 2022 Earnings Release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $4.17
  • Projected revenues: $70.8 billion

Cramer said he hopes the stock will drop so the Investing Club can buy more.

fedex

While the company may reveal more information about its latest quarter, its trajectory likely won’t change since then. it has already reported disappointing results in its preliminary announcement, Cramer said.

Qualcomm

  • Auto Investor Day at 3 p.m. ET

Cramer said the company will showcase the “new Qualcomm” at the event.

Disclaimer: Cramer’s Charitable Trust owns shares of Costco, Salesforce, Nvidia and Qualcomm.

Cramer's game plan for the September 19 trading week

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