Home Retail Market needs weak retail data to stay strong

Market needs weak retail data to stay strong

by Ozva Admin

What matters next week is inflation, says Jim Cramer

The stock market’s current streak could fade if October retail sales data arrives next week, CNBC’s Jim Cramer warned Friday.

“If we see weak retail sales and learn that things are getting very promotional in the key apparel sector, then the market can stay strong,” he said, adding: “The worse retail gets, the less damage The Fed needs to do before they declare victory.”

Stocks rose on Friday after lighter-than-expected October consumer price index data was released the day before and raised investor hopes that the Federal Reserve will slow its pace of raising interest rates. . The benchmark S&P 500 index finished its best week since June.

Earnings reports from the nation’s largest retailers take center stage next week, as does retail sales data for October.

“While I want retail stocks to perform well, oddly enough I have to encourage a weak number [from the October report] with little inflation for that to happen,” Cramer said.

He also previewed next week’s earnings list. All earnings and revenue estimates courtesy of FactSet.

Tuesday: Walmart, Home Depot

walmart

  • Third Quarter 2023 Earnings Release at 7 am ET; conference call at 8 am ET
  • Projected EPS: $1.32
  • Projected revenue: $147.67 billion

Cramer said the economy is weak enough that shoppers are starting to trade lower, which is good news for Walmart.

house deposit

  • Third Quarter 2022 Earnings Release at 6 am ET; conference call at 9 am ET
  • Projected EPS: $4.12
  • Projected revenue: $37.94 billion

Wednesday: Lowe’s, TJX, Target, Nvidia

Lowe’s

  • Third Quarter 2022 Earnings Release at 6 am ET; conference call at 9 am ET
  • Projected EPS: $3.09
  • Projected revenue: $23.14 billion

Cramer said Lowe’s and Home Depot are likely winning because of home renovations, but he doesn’t expect quarters from either company to knock it out of the park.

TJX

  • Third Quarter 2023 Earnings Release at 9:30 am ET; conference call at 11 am ET
  • Projected EPS: 80 cents
  • Projected income; $12.30 billion

TJX shares are “the best of the best for this particular moment,” he said.

Goal

  • Third Quarter 2022 Earnings Release at 6:30 am ET; conference call at 8 am ET
  • Projected EPS: $2.16
  • Projected revenue: $26.41 billion

He said he believes in Target.

nvidia

  • Third Quarter 2023 Earnings Release at 3:20 pm ET; conference call at 5 pm ET
  • Projected EPS: 71 cents
  • Projected revenue: $5.8 billion

Cramer said he is concerned that semiconductor players are seeing a short-cover rally rather than a sustainable one.

Thursday: Kohl’s, Gap, Palo Alto Networks

Kohl’s

  • Third Quarter 2022 Earnings Release at 7 am ET; conference call at 9 am ET
  • Preliminary EPS: 82 cents
  • Preliminary revenue: $4.05 billion

Gap

  • Third Quarter 2022 Earnings Release at 4:15 pm ET; conference call at 5 pm ET
  • Projected EPS: $0
  • Projected revenue: $3.81 billion

Cramer said he is not interested in either Kohl’s or Gap’s shares.

Palo Alto Networks

  • Earnings release for the first quarter of 2023 at 4:05 pm ET; conference call at 4:30 pm ET
  • Projected EPS: 69 cents
  • Projected revenue: $1.55 billion

He said he recommends buying the shares if they fall before the earnings release.

Friday: shoe drawer

  • Third Quarter 2022 Earnings Release at 6:45 am ET; conference call at 9 am ET
  • Projected EPS: $1.14
  • Projected revenue: $2.10 billion

Cramer said he’s betting CEO Mary Dillon has a plan to improve Foot Locker’s performance.

Disclaimer: Cramer’s Charitable Trust owns shares of TJX and Nvidia.

Cramer's game plan for the trading week of November 14

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.

You may also like

Leave a Comment