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Establish a cash position for the next stock sell-off



CNBC’s Jim Cramer said the employment report released by the Labor Department on Friday has satisfied the market, at least during the transition period.

The U.S. economy added 379,000 jobs last month, the unemployment rate dropped slightly, stocks managed to rebound from the day’s low, and a three-day difficult transaction was made to end this week’s high.

Economists have predicted that the job market in February will grow by 210,000.

Kramer said after the “crazy currency”

; transaction: “Although this crazy market takes half a day, what this crazy market needs today is strong but not very strong employment.”

After trading in red in the morning, all major stock indexes closed up nearly 2%. The Dow Jones Industrial Average rose 572 points, or 1.85%, to close at 31,496.30, and closed up 1.82% after a week of turbulence. The S&P 500 index rose 1.95% on Friday to 3,841.94 points, and it also closed higher this week.

The Nasdaq Composite Index rebounded 1.55% to 12,920.15 on Friday after it rushed higher on Thursday. As growth stocks were sold off, the technology blockbuster index fell 2.06% this week.

Kramer said that as the United States continues to recover from the business lockdown and restrictions caused by the coronavirus last year, the labor report in February may not be enough to push the Fed to raise interest rates to curb inflation and curb economic growth.

“This is a hidden Goldlock report: Due to the introduction and reopening of the vaccine, more people are hired, but not so many, that the Fed will be forced to raise interest rates, and it is indeed left behind. “He said.

Wall Street stands by at any time to see whether the upward trend will continue or the stock downward trend will resume. Kramer added that the bond market remains under control as investors continue to switch from high-growth stocks to value and cyclical names until Treasury yields stabilize.

Long-term government bonds are the leader in loan interest rates. Higher interest rates make cyclical stocks more attractive, causing investors to reduce their appetite for risky assets.

“The bullies that I bet on bonds will come back, so I have to prepare for my charitable trust fund as at the end of today, through gatherings like this to reduce the pressure, and must alleviate the price of the rapidly growing dreamer stocks. . And SPAC,” he said. “In this way, next time we get hit as hard as yesterday afternoon, you will have a lot of cash available for real companies.”

Cramer gave the game plan for the next week. The earnings per share forecast is based on FactSet’s estimates:

Monday: stitch repair

Stitch repair

  • Earnings release for the second quarter of 2021: post-listing; conference call: 5 pm
  • Estimated loss per share: 22 cents
  • Estimated turnover: US$512 million

Kramer said: “A large part of it will not have the explosive reaction we got last time.” “However, I bet that this number is better than expected because this is a great business.”

Tuesday: Dick’s sporting goods

Dick’s sporting goods

  • The fourth quarter of 2020 financial report release: before listing; conference call: 10 am
  • Estimated earnings per share: $2.30
  • Estimated turnover: US$3.07 billion

He said: “I hope that Dick will provide a very strong number, which may make the stock soar.”

Wednesday: Campbell Soup, Oracle

Campbell Soup

  • Earnings release for the second quarter of 2021: Conference call before listing: 8:00 am
  • Estimated earnings per share: 83 cents
  • Estimated turnover: US$2.3 billion

Kramer said: “So far, these pantry stocks have not impressed them.” “Although I think this company has won enough timekeepers with its snack products, I will not Contrary to the prevailing wisdom at the time, you will not be disappointed and you can get a 3.2% yield.”

Oracle

  • Earnings release for the third quarter of 2021: post-listing; conference call: 5 pm
  • Estimated earnings per share: $1.11
  • Estimated turnover: USD 10.05 billion

“This is the low-risk technology stock that people suddenly like… [as opposed to] He said: “Those high flying people are still torn to pieces, so I am going to recommend Oracle [tonight], But I was defeated. A large brokerage firm pushed it higher today, so that the stock rose by 6% and stole my limelight. “

Thursday: JD.com, Ulta Beauty

Jingdong

  • Fourth quarter earnings release: before listing; conference call: 7 am

Kramer said that JD.com is “one of the few Chinese stocks I like because it’s another kind of’Chinese Amazon’ thing. Just like Alibaba, you know I like it very much, but its growth rate is even higher. fast.”

Urta Beauty

  • Fourth quarter earnings release: after-hours; conference call: 5 pm
  • Estimated earnings per share: $2.32
  • Estimated turnover: US$2.07 billion

He said: “When the country reopens, it will experience a sales explosion. When the pandemic hit, Ulta turned to e-commerce… But now we are being vaccinated and their physical business can make a comeback,” he said. “In addition, they are launching a new Target series. I will be a buyer before that quarter.”

Disclosure: Kramer’s Charity Rust owns shares in Amazon.

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