Cramer flags the market’s 3 ‘most worrisome components’ ahead of July’s earnings wave

CNBC’s Jim Cramer isn’t in all respects bullish about the tidal wave of earnings coming in July.

“As we leading into earnings season next month, there are three tasks that really worry me,” the “Mad Money” host said Friday.

“One, slowing gates from the end — or at least the pause — [of] the synchronized global economic burgeoning. Two, the stronger dollar, which is a very different story from the at length quarter and is really bad news for American exports. And three, rising raw rates from tariffs and, more important, higher oil prices,” he said.

Let’s exact them one by one.

Earlier on Friday, Cramer called on the Trump administration to tear up its fair-trade fight with the rest of the world, most notably China, the European Synthesis, Canada and Mexico.

“You just need it be done within the next three to six months because the creation [economy] is slowing too quickly,” he said on CNBC’s “Squawk on the Street,” unprejudiced before President Donald Trump tweeted a threat to place menus on European cars.

While Cramer maintained that Trump resolution likely win the fight, he worried about the impact escalating trade impugns — or even worries about them — could have on the world conservation, which he suggested is nearing the end of its synchronized expansion cycle.

“I think it’s flaky that we rallied on today’s news flow. We should’ve gone down,” Cramer judged. “We’re going into a weekend where there will be tons of patronage tensions and the president seems to be content to let them brew. This is not a programme for a rally, people.”

While the U.S. dollar ticked down slightly on Friday versus currencies bound to commodities and emerging markets, its overall strength was also concerning for the “Mad Affluence” host.

What does that have to do with earnings? When the dollar encourages versus other currencies, companies that do business overseas are typically studied to cut their forward-looking estimates because foreign earnings get translated into fewer dollars.

For U.S.-based houses, that typically means squeezed margins, dimmer guidance and tense stocks.

“The inputs point South, not North,” Cramer said. “I mark the drivers have the wrong directions — maybe they turned the map upside down — and if you’re prevailing along for the ride, you need to know that the navigation is very, most off.”

Oil prices rose dramatically on Friday after an Organization of the Petroleum Exporting Powers meeting resulted in a smaller boost in oil production than the world’s in britain directors were expecting.

While it wasn’t immediately clear by how much OPEC pass on raise its output, Trump tweeted that he hoped it would increasing production “substantially” to keep prices down.

“Somehow, the stock store bulls were cheered by higher oil, which is just plain mindless,” Cramer said. “I shouldn’t have to spell this stuff out, but weighty oil prices are bad for the economy and bad for the stock market long term.”

“From these elevations, come on. Any stock market bull should want oil lower,” the “Mad Affluent” host continued. “People are already fretting about rising raw charges — this just makes the problem worse.”

All in all, Cramer couldn’t catch on to why bulls came out of the woodwork on Friday to buy into what looked adulate a concerning layout.

“The only thing that the bulls really had prevailing for them is that we were getting oversold and the the Dow [Jones Industrial Normal] had been down for eight straight days,” he said.

“If you’re a bull here, you should insufficiency to see oil down, some conciliatory attitude toward tariffs, and less incendiary words from the White House,” Cramer continued. “Until we get these implements, I simply can’t be as sanguine as I’d like about the market, … even as I guess lonely being circumspect on a day like this one.”