CNBC’s Jim Cramer said the Department of Labor’s job report on Friday satisfied the markets, at least temporarily.
The US economy created 379,000 jobs last month and the unemployment rate has slowed slowly, as stocks have managed to recover from their daily lows and burst into a tough three-day deal to end the week up.
Economists predicted that the labor market would grow by 210,000 in February.
“A strong but not very strong number of jobs was exactly what this crazy market needed today, although it took Wall Street half the day to figure it out,” said Cramer after the closure of “Mad Money”.
All major stock indices rose nearly 2% at the close, after trading in the red during the morning. The Dow Jones Industrial Average rose 572 points, or 1.85%, to close at 31,496.30, ending at 1.82% after a volatile week. The S&P 500 advanced 1.95% on Friday to 3,841.94, ending the week also in positive territory.
After closing on Red Thursday, the Nasdaq Composite jumped 1.55% to 12,920.15 on Friday. The high-tech index ended the week with a fall of 2.06%, with the liquidation of growth stocks.
As the United States continues its recovery from coronavirus-induced business blocks and restrictions last year, the February labor report probably did not do enough to pressure the Federal Reserve to raise interest rates to contain inflation as the economy grows said Cramer.
“It was a hidden report – Goldilocks: many more people are being hired, thanks to the vaccine launch and reopening, but not so many that the Fed feels compelled to raise interest rates, and some are actually being left behind, ” he said.
Wall Street is waiting to see if the bullish trend will continue or if the bearish trend in stocks will resume. The bond market is still in control, however, as investors continue to switch from high-growth stocks to value and cyclical names until the Treasury’s rising yields stabilize, Cramer added.
Long-term Treasury bills are a thermometer for loan rates. Higher rates make cyclical stocks more attractive, prompting investors to curb their appetite for riskier assets.
“I am betting that the title bullies will be back, so be prepared to use rallies like this to relieve, as we did for my charity fund later in the day, and certainly ease in the actions of the rising dreamers and the SPACs,” he said. . “That way, you will have some money to deploy to real companies the next time we are defeated like we did yesterday afternoon.”
Cramer gave his game plan for the following week. Earnings per share projections are based on FactSet estimates:
Monday: stitch repair
- Earnings release for the second quarter of 2021: after the market; conference call: 5 pm
- Projected losses per share: 22 cents
- Projected revenue: $ 512 million
“A great quarter will not produce the kind of explosive reaction we had last time,” said Cramer. “Even so, I am betting that the numbers are better than expected because this is a great deal.”
Tuesday: Dick’s Sporting Goods
- Earnings release for the fourth quarter of 2020: before the market; conference call: 10am
- Projected EPS: $ 2.30
- Projected revenue: $ 3.07 billion
“I hope Dick will deliver a very strong number, one that can make the stock fly,” he said.
Wednesday: Campbell Soup, Oracle
- Earnings release for the second quarter of 2021: before the market; conference call: 8:00 am
- Projected EPS: 83 cents
- Projected revenue: $ 2.3 billion
“So far, these pantry stocks have failed to impress,” said Cramer. “I can’t go against the prevailing wisdom here, although I think this company has won enough of those who stay at home with its snack offerings that you won’t be so disappointed and will have that 3.2% yield.”
Oracle
- Earnings release for the third quarter of 2021: after the market; conference call: 5 pm
- Projected EPS: $ 1.11
- Projected revenue: $ 10.05 billion
“This is exactly the kind of low-risk technology action that people suddenly like … [as opposed to] the champions, “he said.” They are still falling apart, so I was ready to recommend Oracle [tonight], but I was defeated. A major brokerage firm pushed today, made stocks go up 6%, stole my thunder. “
Thursday: JD.com, Ulta Beauty
- Fourth quarter earnings release: before the market; conference call: 7 am
Cramer said that JD.com is “one of the few Chinese stocks I like because it is something else from ‘China’s Amazon’. It’s like Alibaba, which you know I like, but is growing faster.”
Ulta Beauty
- Release of fourth quarter results: after the market; conference call: 5 pm
- Projected EPS: $ 2.32
- Projected revenue: $ 2.07 billion
“You are about to experience a sales explosion when the country reopens. Ulta switched to e-commerce when the pandemic hit … but now that we are being vaccinated, your brick and mortar business may come back,” he said. “In addition, they are launching a new Target collection. I would be a buyer before this quarter.”
Disclosure: Cramer’s rust benefit owns Amazon shares.
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