You want to own “great American companies, not junk”
CNBC’s Jim Cramer on Friday predicted major market developments next week, including a busy schedule of corporate earnings reports and a meeting of the Federal Reserve’s policy arm.
The Mad Money host’s comments come as the Nasdaq Composite ended its worst week since October 2020, down 7.6% over the past five sessions.
Cramer said if investors pay attention to the companies he highlighted next week on the earnings calendar, they might be “properly surprised at the money these great American businesses are making.”
“But as far as not-so-large US businesses, like SPACs or most recent IPOs, they will be stuck in a house of pain for the foreseeable future,” he said. “We don’t know what will make the market turn around. I’m saying that if you buy great American companies, not junk, historically you tend to do well.”
All earnings and earnings estimates are from FactSet.
Jim Cramer’s game plan for the trading week of January 24th.
Mad Money with Jim Kramer
Monday: Halliburton, IBM
- earnings for the fourth quarter before the call; Conference call at 9 a.m. ET Monday
- Projected earnings per share: 34 cents.
- Projected revenue: $4.09 billion.
Cramer said he believes the Halliburton conference call is a must for energy investors. Specifically, he said he would wait for management’s comment on drilling and whether the newfound discipline in the oil industry is starting to crack given crude oil prices. That discipline was a key reason for the strength of energy stocks last year, as well as their strong start in 2022, he said.
IBM
- earnings for the fourth quarter after closing; Conference call at 5:00 pm ET Monday
- Projected earnings per share: $3.30.
- Projected sales: $16.07 billion
Cramer said he expects “very little” from IBM’s quarter, given the special circumstances surrounding the company’s spin-off of its Kyndryl infrastructure services division.
Tuesday: General Electric, Johnson & Johnson, Lockheed Martin, American Express and Microsoft.
- earnings for the fourth quarter before opening; Conference call at 8 am ET Tuesday
- Projected earnings per share: 85 cents.
- Projected revenue: $21.31 billion.
Johnson and Johnson
- earnings for the fourth quarter before the call; Conference call at 8:30 am ET Tuesday
- Projected earnings per share: $2.12.
- Projected sales: $25.29.
Both GE and Johnson & Johnson announced serious split plans last year, and their respective stocks didn’t do well, Cramer said. Given that fact, and the general negative sentiment on Wall Street right now, Cramer said investors can afford to take their time reviewing both companies going forward. “None of them are going to run away from you,” he said.
Lockheed Martin
- earnings for the fourth quarter before opening; Conference call at 11:00 AM ET Tuesday
- Projected earnings per share: $7.16.
- Projected revenue: $17.66 billion.
Kramer said Lockheed Martin is the favorite company to release Tuesday morning reports due to the geopolitical situation with both Russia and China. “We’ll see what CEO Jim Taglet has to say,” Kramer said.
American Express
- earnings for the fourth quarter before opening; Conference call at 8:30 am ET Tuesday
- Projected earnings per share: $1.86.
- Projected revenue: $11.54 billion.
Cramer said he’s a fan of American Express ahead of the quarterly results, citing the recovery in SMBs and the ongoing recovery in travel.
Microsoft
- Q2 2022 earnings after close; Conference call at 5:30 pm ET Tuesday
- Projected earnings per share: $2.31.
- Projected sales: $50.65 billion.
The Microsoft block is incredibly important, Cramer said. In particular, Cramer said investors’ attention will be focused on the tech giant’s Azure division and whether cloud computing operations will continue to grow.
Wednesday: FOMC meeting ends; Boeing, Tesla and Intel earnings
Federal Reserve Chairman Jerome Powell testifies at a House Financial Services Committee hearing titled “Overview of Treasury and Federal Reserve Pandemic Response” at the Rayburn Building on Wednesday, December 1, 2021.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
- The Fed’s first policymaking meeting in 2022 begins on Tuesday and ends on Wednesday.
- Fed Chairman Jerome Powell will hold a press conference around 2:30 pm ET Wednesday.
“Powell will talk about his rate hike schedule, and until he says he’s going to do it in sync, I bet we’ll be fine,” Cramer said, while acknowledging that some on Wall Street believe the market is down. is awaiting Powell’s scheduled press conference on Wednesday.
Boeing
- earnings for the fourth quarter before the call; Conference call at 10:30 AM ET Wednesday
- Projected earnings per share: loss of 35 cents.
- Projected revenue: $16.48 billion
Kramer said he was lowering expectations for Boeing’s printing. “If you don’t expect anything, you will never be disappointed,” he said, noting that he owns shares in his philanthropic investment fund.
“The aerospace cycle is too good to ignore, but the company is poorly managed,” he said.
Tesla
- earnings for the fourth quarter after closing; Conference call at 5:30 pm ET Wednesday
- Projected earnings per share: $2.26.
- Projected sales: $16.99 billion
Kramer said he expects another good quarter from Tesla. He noted that Tesla has a lot of news, including about its first plant in Germany.
Intel
- Earnings for the fourth quarter after the bell; Conference call at 5:00 pm ET Wednesday
- Projected earnings per share: 90 cents.
- Projected sales: $18.33 billion.
Cramer said he will be listening to how Intel plans to fund its big announcement Friday about plans to build semiconductor plants in Ohio.
Thursday: McDonald’s and Apple profit
Epics | Halton Archive | Getty Images
- earnings for the fourth quarter before opening; Conference call at 8:30 am ET Thursday
- Projected earnings per share: $2.34.
- Projected revenue: $6.03 billion.
The restaurant industry has faced many challenges during the Covid pandemic, including inflationary pressures, Kramer said. “We’re moving towards a winner-take-all scenario, and the last person to survive will most likely be McDonald’s, among others,” he said.
Apple
- Q1 2022 earnings after close; Conference call at 5:00 pm ET Thursday
- Projected earnings per share: $1.89.
- Projected revenue: $118.74 billion
Cramer, whose charitable foundation owns Apple stock, said he thinks the iPhone maker’s earnings report could be “disappointing.”
“For the first time in years, Apple stock will not be at the peak of popularity, which gives you a real chance to make some money from the company, I always say that you should just own it and not trade,” he said.
Friday: Chevron and Caterpillar
- earnings for the fourth quarter before the call; Conference call at 11:00 AM ET Friday
- Projected earnings per share: $3.11.
- Projected revenue: $44.59 billion
Cramer said he thinks Chevron, another holding in his philanthropic foundation’s portfolio, “must be a monster”, calling it “a skinny, mean oil machine”. He added that he hoped the shares would fall after the profits and the trust could strengthen its position.
Caterpillar
- earnings for the fourth quarter before opening; Conference Call at 8:30 AM ET Friday
- Projected earnings per share: $2.26.
- Projected revenue: $13.17 billion.
Caterpillar finds itself in “one of the most challenging industries because its raw material costs are rising, but orders may or may not overcome that impact,” he said.
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