Wall Street took a breather on Friday after powering through four straight days of gains in a week that was defined by an unsettled presidential election.
With returns pointing toward a potential Joe Biden victory, CNBC’s Jim Cramer expects a winner to be announced by the start of the workweek.
After a relatively sedate day where the S&P 500 slipped just over one point lower to 3,509.44, he said investors “should do nothing” when the stock market opens on Monday.
“It looks like once again we are going to have divided government [next year], and with divided government, there’s not a lot that the president can do,” the “Mad Money” host said.
The 30-stock Dow Jones average dipped almost 67 points, or 0.24%, to 28,323.40 in Friday’s session. The tech-heavy Nasdaq Composite was the only one of the three major indexes to extend its winning streak, inching up a handful of points to 11,895.23.
The major averages all climbed 7% or higher this week.
“Next week could be unpredictable. My bias remains bullish,” he said, “although we have to keep our eyes open because this is still kind of a crazy market, and we [just] had one of the best weeks I’ve seen in years.”
Cramer delivered his playbook for the week of earnings reports to come. All projections are based on FactSet estimates:
Monday: McDonald’s, Plug Power, Occidental Petroleum, International Flavors & Fragrance, Simon Property Group, Beyond Meat, RingCentral, Novavax, Inovio Pharmaceuticals earnings
- Q3 earnings release: before market; conference call: 8:30 a.m.
- Projected EPS: $1.91
- Projected revenue: $5.40 billion
“I think Mickey D’s is doing incredibly well because it’s the easiest place to pick up food in the age of Covid-19,” Cramer said.
- Q3 earnings release: before market; conference call: 10 a.m.
- Projected losses per share: 7 cents
- Projected revenue: $107 million
“My favorite way to play the coming hydrogen fuel cell revolution,” he said.
- Q3 earnings release: after market; conference call: 11 a.m.
- Projected losses per share: 72 cents
- Projected revenue: $4.22 billion
“I want you to listen … because it will be an object lesson in why you need to avoid the oil stocks,” the host said.
International Flavors & Fragrances
- Q3 earnings release: after market; conference call: Tuesday, 10 a.m.
- Projected EPS: $1.46
- Projected revenue: $1.28 billion
“I’ve never seen the stock this cheap,” he said. “Maybe it can get its mojo back this quarter when the DuPont deal closes.”
- Q3 earnings release: after market; conference call: 5 p.m.
- Projected EPS: $2.29
- Projected revenue: $1.12 billion
“You’ve got to listen to this one because of all the pandemic-driven retail layoffs and store closures,” Cramer said.
- Q3 earnings release: after market
- Projected EPS: 52 cents
- Projected revenue: $120 million
- Q3 earnings release: after market; conference call: 4:30 p.m.
- Projected EPS: 5 cents
- Projected revenue: $132 million
“Beyond Meat’s been missing quarters because they’ve pushed prices down to make their faux-meat offerings more mainstream,” he said. “That is a terrific long-term strategy, even if it hurts short-term.”
- Q3 earnings release: after market; conference call: 5 p.m.
- Projected EPS: 24 cents
- Projected revenue: $287 million
“If it can rally after the quarter, then it will tell you a great deal about this market’s attitude toward growth stocks,” he said.
- Q3 earnings release: before market; conference call: 4:30 p.m.
- Projected EPS: $1.73
- Projected revenue: $231 million
- Q3 earnings release: after market; conference call: 4:30 p.m.
- Projected losses per share: 19 cents
- Projected revenue: $3 million
“They’re both working on something for Covid,” Cramer said of the two companies.
Tuesday: DR Horton, Rocket Companies, BioNtech earnings
- Q4 fiscal 2020 earnings release: before market; conference call: 8:30 a.m.
- Projected EPS: $1.76
- Projected revenue: $5.84 billion
- Q3 conference call: 4:30 p.m.
- Projected EPS: $1.09
- Projected revenue: $4.55 billion
“I bet they both have really good quarters,” Cramer said.
- Q3 earnings release: before market; conference call: 8 a.m.
- Projected losses per share: 42 cents
- Projected revenue: $63.1 million
“They seem to have the lead when it comes to mass production,” he said.
- Q3 earnings release: before market; conference call: 8:30 a.m.
- Projected losses per share: 26 cents
- Projected revenue: $400 million
“This will be their first quarter out of the gate. They tend to be good ones,” the host said.
Wednesday: Air Products, Green Thumb, Lemonade earnings
- Q4 earnings release: before market; conference call: 10 a.m.
- Projected EPS: $2.21
- Projected revenue: $2.26 billion
“Their top competitor, Linde, posted a solid number. I expect more of the same if even better from Air Products,” he said.
- Q3 earnings release: after market; conference call: 5 p.m.
- Projected EPS: 2 cents
- Projected revenue: $176 million
“The cannabis cohort’s currently up on a lot of fluff,” he said. “Much has to happen before things truly go their way, but I bet Green Thumb gives you a thumbs up and a roadmap.”
- Q3 earnings release: before market; conference call: 8 a.m.
- Projected losses per share: 64 cents
- Projected revenue: $14.7 million
“I expect strong results,” he said.
Thursday: GoodRx, Disney, Cisco, Applied Materials earnings
- Q3 earnings release: before market; conference call: 8:30 a.m.
- Projected EPS: 8 cents
- Projected revenue: $135 million
“Expect good things when it reports on Thursday,” Cramer said.
- Q4 fiscal 2020 earnings release: after market; conference call: 4:30 p.m.
- Projected losses per share: 73 cents
- Projected revenue: $14.15 billion
“I don’t know what Disney can say right now that would be all that encouraging given the pandemic,” he said.
- Q1 fiscal 2021 earnings release: after market; conference call: 4:30 p.m.
- Projected EPS: 70 cents
- Projected revenue: $11.85 billion
“Cisco’s been struggling of late, but it’s a cheap stock, bountiful dividend,” the host said.
- Q4 fiscal 2020 conference call: 4:30 p.m.
- Projected EPS: $1.17
- Projected revenue: $4.6 billion
“Applied Materials is part of the red-hot semiconductor capital equipment cohort,” he said.
Friday: Draftkings earnings
- Q3 earnings release: before market; conference call: 8:30 a.m.
- Projected losses per share: 62 cents
- Projected revenue: $132 million
Disclosure: Cramer’s charitable trust owns shares of Walt Disney.
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