Strong Labor Report Could Bring Bigger Rate Raises for the Fed
CNBC’s Jim Cramer on Monday told investors that a key labor report could help bolster the Federal Reserve’s inflation strategy.
“We need to see unemployment go higher, while wages stay steady, and we have significant layoffs in a number of industries. If that doesn’t happen, if the numbers are real. high, then the Fed heads will get out of their jobs and start talking about how we need to raise rates more,” he said.
Stocks fell on Monday to start the week, weighed down by Protest against Covid restrictions in China broke out over the weekend.
According to Cramer, the Labor Department will release its November nonfarm payrolls report on Friday and could end a rough week for the market. “Seasonally, it tends to get a little weaker, before things really pick up again in December,” he said.
He also previewed next week’s earnings. All earnings and revenue estimates are provided by FactSet.
Tuesday: Business day, CrowdStrike
- Report Q3 2023 earnings at 4 p.m. ET; conference call at 4:30 p.m. ET
- Expected EPS: 84 cents
- Expected revenue: $1.59 billion
Cramer predicts the company will be hard-pressed to come out on top in the past “spectacular” quarter.
- Report Q3 2023 earnings at 4:05 p.m. ET; conference call at 5 p.m. ET
- Expected EPS: 48 cents
- Expected revenue: 788 million USD
He said he’s interested in seeing if the company can change from a pure growth game to a profitable growth name.
Wednesday: Hormel Foods, Petco, Salesforce, Okta
- Report Q4 2022 earnings at 6:30 a.m. ET; conference call at 9 a.m. ET
- Estimated EPS: 50 cents
- Expected revenue: $3.38 billion
The hormone that can drag on other food stores has stopped decreasing, says Cramer.
- Report Q3 2022 earnings at 7:30 a.m. ET; conference call at 8:30 a.m. ET
- Expected EPS: 16 cents
- Expected revenue: 1.49 billion USD
He said he was worried the company would report disappointing results.
- Report Q3 2023 earnings at 4:05 p.m. ET; conference call at 5 p.m. ET
- Expected EPS: $1.22
- Expected revenue: $7.83 billion
Cramer said he doesn’t expect co-CEO Marc Benioff to “suffer” from the fact that the stock is one of the worst-performing stocks in the Dow Jones Industrial Average.
- Report Q3 2023 earnings at 4:05 p.m. ET; conference call at 5 p.m. ET
- Expected loss: loss of 8 cents per share
- Expected revenue: $591 million
“Like so many companies in Silicon Valley, I think Okta will have to learn to live with less [workers]”he say.
Thursday: Dollar General, Kroger, Ulta Beauty, Marvell Technology
- Report Q3 2022 earnings at 6:55 a.m. ET; conference call at 10 a.m. ET
- Estimated EPS: $2.54
- Expected revenue: $9.42 billion
Cramer points out that while analysts love the stock, the products in the company’s stores are more expensive than they used to be.
- Report Q3 2022 earnings at 8 a.m. ET; conference call at 9 a.m. ET
- Expected EPS: 82 cents
- Expected revenue: $33.99 billion
“While the company is likely to deliver a good quarter, people will only be interested in the status of the company’s merger plan with Albertsons,” he said.
- Report Q3 2022 earnings at 4 p.m. ET; conference call at 4:30 p.m. ET
- Expected EPS: $4.13
- Expected revenue: $2.21 billion
Cramer said he expects a huge amount of earnings from the company.
- Report Q3 2023 earnings at 4:05 p.m. ET; conference call at 4:45 p.m. ET
- Expected EPS: 71 cents
- Expected revenue: 1.80 billion USD
While he’s a big believer in the stock, it probably won’t skyrocket until the industry-wide chip glut is resolved, he said.
Disclaimer: Cramer’s Charitable Trust owns shares of Salesforce.