Don’t ‘be a hero’ while the Fed fights inflation

On Friday, CNBC’s Jim Cramer warned investors against adding to their portfolios until the stock market and economy become less volatile.

“This economy is a runaway train; it went through the Fed blockades today, so now they can just blow up the tracks to derail the whole thing. When they blow up, it’ll be safe to buy .Until then, I urge you not to be a hero,” he said.

Cramer warned that he expects central bank officials to stick to their hawkish stance on inflation, adding that the producer price index and consumer price index expected next week could shed more light on the state of inflation and the Fed’s next steps.

Stocks fell on Friday after the September jobs report signaled the labor market is strengthening despite aggressive central bank interest rate hikes.

“There’s always the possibility that this could be the latest hot jobs number, in which case the Fed is tightening into a chasm and the damage could be catastrophic,” he said.

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

Wednesday: PepsiCo

  • Third Quarter 2022 Earnings Release at 6:00 a.m. ET; conference call at 8:15 a.m. ET
  • Projected EPS: $1.84
  • Projected revenue: $20.81 billion

Cramer said he hopes the company will report that its gross costs are down.

Thursday: Delta Airlines, Walgreens Boots Alliance, Domino’s Pizza, BlackRock

Delta Airlines

  • Third Quarter 2022 Earnings Release at 6:30 a.m. ET; conference call at 10 a.m. ET
  • Projected EPS: $1.55
  • Projected revenue: $12.90 billion

The company is likely concerned about rising oil prices, Cramer predicted.

Walgreens Boot Alliance

  • Fourth Quarter 2022 Earnings Release at 7:00 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: 77 cents
  • Projected revenue: $32.09 billion

Dominos Pizza

  • Third Quarter 2022 Earnings Release at 7:30 a.m. ET; conference call at 10 a.m. ET
  • Projected EPS: $2.98
  • Projected revenue: $1.07 billion

He said he believed Walgreens and Domino’s were facing labor shortages.

black rock

  • Third Quarter 2022 Earnings Release at 6:15 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $7.64
  • Projected revenue: $4.3 billion

Cramer said he was betting the company would report strong results and he would be a buyer of the stock.

Friday: JPMorgan Chase, Wells Fargo, Morgan Stanley, UnitedHealth Group

JPMorgan Chase

  • Third Quarter 2022 Earnings Release at 7:00 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $2.92
  • Projected revenue: $32.13 billion

Wells Fargo

  • Third Quarter 2022 Earnings Release at 7:00 a.m. ET; conference call at 10 a.m. ET
  • Projected EPS: $1.10
  • Projected revenue: $18.76 billion

Morgan Stanley

  • Third Quarter 2022 Earnings Release at 7:30 a.m. ET; conference call at 9:30 a.m. ET
  • Projected EPS: $1.52
  • Projected revenue: $13.24 billion

“With employment still simmering, it’s entirely possible the banks could do a kill here without too much bad debt risk,” Cramer said.

UnitedHealth Group

  • Third Quarter 2022 Earnings Release at 5:55 a.m. ET; conference call at 8:45 a.m. ET
  • Projected EPS: $5.43
  • Projected revenue: $80.52 billion

While he’s confident the quarter will be strong, he expects the stock to fall if the company’s results aren’t perfect.

Disclaimer: Cramer’s Charitable Trust owns shares of Morgan Stanley and Wells Fargo.

Cramer's game plan for the October 10 trading week

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