According to CNBC’s Jim Cramer, the Labor Department’s work report on Friday satisfied markets, at least for the time being.
The U.S. economy added 379,000 jobs last month and the unemployment rate rose, with stocks able to bounce from the lowest and take a difficult three-day trading period to end the week on a high note .
Economists have predicted that the labor market will grow by 210,000 in February.
“A strong but not too strong number of employees was exactly what this crazy market needed today, even though it took half the day for Wall Street to figure it out,” Cramer said after “Mad Money ‘.
The major stock indices swung almost 2% higher at the close after trading in the red this morning. The Dow Jones Industrial Average averaged 572 points, or 1.85%, to close at 31,496.30, rising 1.82% after a volatile week. The S&P 500 rose 1.95% on Friday to 3 841.94, which also ended the week in a positive area.
After closing in the red Thursday, the Nasdaq Composite jumped 1.55% to 12,920.15 on Friday. The technology-heavy index fell 2.06% this week as growth stocks sold.
As the U.S. recovery from coronavirus-induced business locks and restrictions continues, the February labor report probably did not do enough to push the Federal Reserve to raise interest rates to weaken inflation as the economy grows, Cramer said.
“It was a hidden Goldilocks report: many more people are being hired, thanks to the vaccination and the reopening, but not so much that the Fed will feel compelled to raise interest rates, and some are really left behind,” he said. said.
Wall Street is ready to see if the rising trend will continue or if the decline in equities resumes. However, the bond market is still in control as investors continue to switch from high-growth stocks to value and cyclical names until rising Treasury yields stabilize, Cramer added.
Long-term treasury is a major cause of lending rates. Higher rates make cyclical stocks more attractive, leading investors to reduce their appetite for riskier assets.
“I bet the bullies will be back, so get ready by using rallies like this to lighten up, as we did at the end of the day for my charity trust, and definitely lighten up the high-flying dream supplies and the SPACs,” he said. he said. “That way you have some cash to use for the right companies the next time we get hammered like yesterday afternoon.”
Cramer gave his game plan for the coming week. Earnings-per-share predictions are based on FactSet estimates:
Monday: Stitch Fix
- Q2 2021 release of earnings: to market; conference call: 17:00
- Estimated losses per share: 22 cents
- Estimated income: $ 512 million
“A great quarter will not yield the kind of explosive response we last got,” Cramer said. “Still, I bet the numbers are better than expected because it’s a great business.”
Tuesday: Dick’s Sporting Goods
- Qualification of the income of Q4 2020: before the market; conference call: 10:00
- Projected EPS: $ 2.30
- Estimated revenue: $ 3.07 billion
“I expect Dick to deliver a very strong number, which could make the stock fly,” he said.
Wednesday: Campbell Soup, Oracle
- Q2 2021 earnings release: before the market; conference call: 8:00 am
- Projected EPS: 83 cents
- Estimated revenue: $ 2.3 billion
“So far, these pantry supplies have failed to impress,” Cramer said. “I can not interfere with the prevailing wisdom here, although I think this company has won enough from the home stayers with its snack offerings that you will not be so disappointed, and you will achieve the return of 3.2%.”
Oracle
- Q3 2021 earnings release: to market; conference call: 17:00
- Projected EPS: $ 1.11
- Estimated revenue: $ 10.05 billion
‘It’s exactly the kind of lower – risk technology stock that people suddenly like … [as opposed to] the high-flyers, “he said.” It’s still torn to shreds, so I’m ready to recommend Oracle [tonight], but I got beaten up. A large brokerage house pushed it today, increasing the stock by 6%, stealing my thunder. ‘
Thursday: JD.com, Ulta Beauty
- Quarterly earnings release: before the market; conference call: 07:00
Cramer said JD.com is’ one of the few Chinese stocks I like because it’s a different ‘Amazon or China’ thing. It’s like Alibaba, which you know I like, but it’s growing faster. ‘
Ulta Beauty
- Quarterly quarterly earnings: to market; conference call: 17:00
- Projected EPS: $ 2.32
- Estimated revenue: $ 2.07 billion
“It’s about to experience an explosion in sales when the country reopens. Ulta turned to e-commerce when the pandemic started … but now that we’ll be vaccinated, their brick and mortar industry could make a return, “he said. ‘In addition, they are implementing a new Target collection. I’ll be a buyer before the term. ‘
Disclosure: Cramer’s charity owns Amazon shares.
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