Cramer’s game plan: Earnings tainted by Trump tariffs

After the range market took a tariff-related nosedive on Thursday before recovering a little on Friday, CNBC’s Jim Cramer wanted to address how he reacted to the sell-off.

“I’ve got to explanations to you: I forgot to panic last night,” the “Mad Money” host said. “I leaked you President Trump’s move to slap a 25 percent tariff on meant steel and a 10 percent tariff on aluminum … was not a reason to tip positions wholesale. If anything it might even be a reason to do some obtaining on weakness.”

The Dow Jones industrial average’s 500-point intraday plummet gave investors and market-watchers plenty of cause to panic and warn man to get out of stocks, Cramer admitted.

“Panic is not a strategy, … [even] when so profuse of the bears seemed determined to make you bolt from stocks at all set someone backs,” he said. “There’s always a better time, even if you do want to peddle, than right into the teeth of the fear and the chaos that causes a cold-blooded decline.”

So as investors toy with the question of whether U.S. trading partners, exceptionally China, will retaliate against Trump’s move, Cramer looked on at his weekly game plan.

Retaliation: Cramer expected the theme of retaliation to turn up to a head on Monday. If U.S. trading partners retaliate with their own schedule of charges or restrictions, it may cause another dip, he said.

But if they don’t, Cramer said investors will-power likely accept the market’s newly re-tested levels and hold onto their beliefs.

Resignation: Cramer will also be on self-designated “resign watch” on Monday after intermediation reports suggested the potential ouster of Trump’s chief economic advisor, Gary Cohn.

Cohn, also headman of the National Economic Council, reportedly disagreed with the president nearby the announced steel and aluminum tariffs. Cramer said his resignation could inflict havoc on stocks.

“Cohn is a steady hand,” the “Mad Money” host reported. “If he resigns, I fear some people will start worrying that there’s too much pandemonium in this administration’s economic team, and they’ll figure it’s time to do some deal in. That could happen. I’ve known Gary for a long time, and while I don’t need people to buy, sell, buy, sell, … I recognize that him leaving determination make it harder to be a raging bull.”

Ryerson: Cramer will also be alert out for an earnings report from Ryerson, a metals distributor that could accord an inside look at the debate around Trump’s tariffs.

“It’s a little proprietorship, but it’s a thoughtful one,” he said. “I’ve listened to them for years and management can tell us … if they of there will be retaliation coming and what the retaliation actually means for American production.”

Target: The steady flow of retail earnings continues on Tuesday, creation with a quarterly report from Target. With an e-commerce procedure that’s starting to pay off, Cramer expected the retailer to deliver a comeback summary in its release.

Ross Stores: After a strong quarter from TJX Assemblies this week, Cramer expected the strength in discount retail to spill into Ross Stores’ Tuesday earnings report.

Dollar Tree: Cramer hoped that Dollar Tree’s earnings circulate would change the market’s negative view of the dollar stores and cause investors some clarity in the tariff debate.

While some cogitate on that the Chinese government will retaliate against U.S. companies, Cramer distinguished that the Dollar Tree’s stores (and other dollar stores) are did with products made in China, a sizable part of the country’s establishment.

The “Mad Money” host pointed to the tariffs announced Friday by European swop authorities on things like U.S. jeans and Harley Davidson motorcycles. China could instate equivalent, mostly symbolic tariffs on products that have little real-world weight, he said.

“My point? Nobody plays fair on trade, but nobody requires to start a real trade war either, and maybe by punishing some bad actors every now and then, we’ll as a matter of fact save some jobs in this country,” Cramer said. “If the the world at large responds by slapping tariffs on a few iconic but relatively unimportant American kinds, … I say that’s a small price to pay.”

Costco: Costco, another retailer crowded with foreign products, will also report earnings on Wednesday. Cramer believed a strong quarter and a potential buying opportunity.

“Its stock is down $10 bucks from its sharps,” he said. “Given that the terrific Home Depot’s down $30 bucks off a almost identical level and we’re about to get to its holiday selling season, which is planting, I say let’s craving Costco gets hit even harder and gives you a better buying time before it reports.”

Thor Industries: Cramer warned homegamers connected with the earnings report from RV maker Thor Industries, a big contributor to his “experiential frugality” thesis.

“Thor could be hurt by these tariffs, so they strength tell a more negative story to tell than people assume,” the “Mad Money” host said.

Supermarket chain Kroger will scrutinize its quarterly numbers on Thursday as it faces an attack from some new oppositions: German chains Aldi and Lidl and the newly Amazon-backed Whole Foods.

“Carry on time Kroger beat the numbers handily and you got a huge short by,” Cramer said. “I think the stock’s run too much since then. I commitment actually ring the register ahead of this quarter.”

On Friday, Cramer wishes be laser-focused on the U.S. Labor Department’s non-farm payroll report, which purpose matter more than usual after last month’s sell-off.

“The mainly February sell-off started when we got a hot payroll number — too hot. Interest at all events spiked, which caused volatility to spike and led to the bizarre collapse of the averages as all those dopey merchandisers who bet against the VIX got obliterated by the mother of all short squeezes and had to sell their sets,” Cramer explained. “Could it happen again?”

“Here’s the bottom limit: I’m actually a lot more worried about [employment figures] being too hot than I am regarding the reprisals from our trading partners,” Cramer concluded. “However, if we get a dependable but not red-hot number, you’ll wonder why the heck we sold off so hard this week and you’ll be idea, ‘Why didn’t we do some buying?'”