3 events set the tone of the market in October

Cramer's Week Ahead: 3 Events Will Determine Whether Markets Poor Momentum Will Continue Into October

CNBC’s Jim Cramer said Friday that three key events next week will determine whether the nightmarish month for the stock market will continue into October.

These are the events:

  • The publication of the report of non-agricultural labor Friday. Cramer said he expects it to show over hires and wages.
  • Two speaking engagements by Loretta Mester, president of the Cleveland Fed, who Cramer says is the chief inflation hawk on the Federal Open Market Committee. “She wants to protect us from high inflation, even if it means interest rates plunge into recession,” he said.

The S&P 500 closed its worst month since March 2020 on Friday. The Dow Jones Industrial Average and the Nasdaq Composite fell 8.8% and 10.5% respectively this month.

While it’s likely that Mester and the report will both bring bad news, if they stick to a solid game plan, investors can protect themselves from the market wreck, Cramer said.

Own high-quality companies with good balance sheets and high dividends that will benefit from a fall in inflation, because that’s going to happen. he said.

He also provided a preview of next week’s earnings. All earnings and revenue estimates are from FactSet.

Wednesday: Helen of Troy, Lamb Wesson

Helen of Troy

  • Q2 2023 earnings figures before the bell; conference call at 9 a.m. ET
  • Expected earnings per share: $2.21
  • Expected Revenue: $521 Million

Lamb Weston Holdings

  • Q1 2023 earnings figures at 8:30 a.m. ET; conference call at 10 a.m. ET
  • Expected earnings per share: 79 cents
  • Expected Revenue: $1.21 Billion

“We saw this from Nike last night — all that happens is the flip side is accentuated because the top just enters water or goes a little higher. That’s what I expect will happen to both when they report,” Cramer said.

Thursday: Constellation Brands, Conagra Brands, McCormick, Norwegian Cruise Line Holdings

Zodiac Signs

  • Q2 2023 earnings figures at 7:30 a.m. ET; conference call at 10:30 a.m. ET
  • Expected earnings per share: $2.81
  • Expected Revenue: $2.51 Billion

He said he expects the company’s sales to be “extremely good”.

Conagra Brands

  • Q1 2023 earnings figures at 7:30 a.m. ET; conference call at 9:30 a.m. ET
  • Expected earnings per share: 52 cents
  • Expected Revenue: $2.85 Billion

According to Cramer, the company needs to grow.

McCormick

  • Q3 2022 earnings figures at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Expected earnings per share: 71 cents
  • Expected Revenue: $1.6 Billion

Cramer said the company’s earnings call will bolster previously announced weaker-than-expected third-quarter results and the lowering of the full-year outlook earlier this month.

Norwegian Cruise Line

  • Investor Meeting at 10 a.m. ET

Cramer said he expects Norwegian to outperform competitor Carnival, which struggled with higher costs in the last quarter, but it’s unclear if that will be enough to help Norwegian stocks.

Friday: Tilray Brands

  • Q1 2023 earnings figures at 7:00 a.m. ET; conference call at 8:30 a.m. ET
  • Expected loss: loss of 5 cents per share
  • Expected Revenue: $169 Million

He predicted the company will make a “bold” statement on cannabis legalization and said he is considering whether this could be a great speculative stock to own during the Biden administration.

Disclosure: Cramer’s Charitable Trust owns shares of Constellation Brands.

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