3 events will set the market’s tone for October


Cramer's week ahead: 3 events will determine if markets' bad momentum will continue in October

CNBC’s Jim Cramer on Friday mentioned that three key events subsequent week will decide if the nightmarish month for the inventory market will proceed into October.

Here are the events:

  • The launch of the nonfarm labor report Friday. Cramer mentioned he expects it to indicate inflated hiring and wages.
  • Two talking engagements by Cleveland Fed President Loretta Mester, who Cramer believes is the major inflation hawk on the Federal Open Market Committee. “She wants to protect us … from high inflation, even if that means raising interest rates into a recession,” he mentioned.

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

While it is doubtless that Mester and the report will each deliver unhealthy information, traders can defend themselves from the market wreckage in the event that they follow a stable sport plan, in response to Cramer. 

“Own high-quality companies with good balance sheets and high dividends that will benefit from a decline in inflation, because that’s what’s going to happen,” he mentioned.

He additionally previewed subsequent week’s slate of earnings. All earnings and income estimates are courtesy of FactSet.

Wednesday: Helen of Troy, Lamb Wesson

Helen of Troy

  • Q2 2023 earnings launch earlier than the bell; convention name at 9 a.m. ET
  • Projected EPS: $2.21
  • Projected income: $521 million

Lamb Weston Holdings

  • Q1 2023 earnings launch at 8:30 a.m. ET; convention name at 10 a.m. ET
  • Projected EPS: 79 cents
  • Projected income: $1.21 billion

(*3*) Cramer mentioned.

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

Constellation Brands

  • Q2 2023 earnings launch at 7:30 a.m. ET; convention name at 10:30 a.m. ET
  • Projected EPS: $2.81
  • Projected income: $2.51 billion

He mentioned he expects the firm’s prime line to be “extraordinarily good.”

Conagra Brands

  • Q1 2023 earnings launch at 7:30 a.m. ET; convention name at 9:30 a.m. ET
  • Projected EPS: 52 cents
  • Projected income: $2.85 billion

The firm must develop its business, in response to Cramer.

McCormick

  • Q3 2022 earnings launch at 6:30 a.m. ET; convention name at 8 a.m. ET
  • Projected EPS: 71 cents
  • Projected income: $1.6 billion

Cramer mentioned that the firm’s earnings name will merely reinforce its preannounced weaker-than-expected third-quarter earnings and full-year outlook reduce earlier this month.

Norwegian Cruise Line

  • Investor assembly at 10 a.m. ET

Cramer mentioned that he expects Norwegian to be performing higher than competitor Carnival, which struggled with larger prices in its newest quarter, nevertheless it’s unclear whether or not that will be sufficient to assist Norwegian’s inventory.

Friday: Tilray Brands

  • Q1 2023 earnings launch at 7 a.m. ET; convention name at 8:30 a.m. ET
  • Projected loss: lack of 5 cents per share
  • Projected income: $169 million

He predicted that the firm will make a “bold” statement about the legalization of hashish and mentioned he is pondering whether or not this could possibly be an amazing speculative inventory to personal throughout the Biden administration.

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

Cramer's game plan for the trading week of Oct. 3

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