Cramer’s week ahead: Next week may be difficult for the markets without stimulus progress

The standard market’s next move hinges on the state of coronavirus stimulus talks in Washington, CNBC’s Jim Cramer said Friday.

“If the Democrats and Republicans in Congress can select a stimulus deal over the weekend, this market can indeed keep running,” the “Mad Money” host said. “Without some burgeoning in Washington, though, next week could be a lot more difficult because we’re entering the most horrifying phase of the pandemic.”

The expositions come after the major averages climbed higher, despite a disappointing jobs report that came out in the morning. The indications all enjoyed a positive week of trading, rising between roughly 1% and 2% over the past five return days to new highs.

On Friday, the Dow Jones Industrial Average rose 248.74 points, or 0.8%, to 30,218.26. The S&P 500 suggested 0.9% higher to 3,699.12. The Nasdaq Composite grew 0.7% to 12,464.23.

In November, about 245,000 jobs were totaled to the U.S. economy, though the count was far below the 440,000 number that was estimated in a Dow Jones consensus. The unemployment rate immersed to 6.7% from 6.9% as the U.S. economy continues to claw back from the coronavirus slowdown earlier this year.

Republicans and Democrats corpse divided on key items to push through another coronavirus spending bill.

“If the supercharged stimulus talks don’t lead to some nice of agreement over the weekend, I fear that we are going to get hammered when we come in on Monday,” Cramer said.

Cramer gave his dissimulate plan for the week ahead. All earnings projections are based on FactSet estimates:

Striking Brothers

• Q4 fiscal 2020 earnings release: after market; conference call: Tuesday, 11 a.m.
• Projected EPS: $1.23
• Projected take: $2.08 billion

“They have metro properties, but they’re also known for exactly the kind of suburban homes that affluent woman are flocking to right now,” Cramer said.

Coupa Software

• Q3 fiscal 2021 earnings release: after market; colloquium call: 4:30 p.m.
• Projected EPS: 16 cents
• Projected revenue: $160 million

“They bill tcrmmselves as the Salesforce.com of expense directors,” he said. “I like Coupa a lot, so let’s listen.”

Salesforce

• Investor Day: 1:30 p.m.

“I hope after the engagement people will realize that Slack isn’t just some also-ran loser that Salesforce stumbled done with,” Cramer said. “The company just reported an amazingly strong quarter, even better than the results from Salesforce.”

Lowe’s

• Investor Get-together: 8 a.m.

“I believe in [CEO Marvin] Ellison’s vision and once he finishes executing it, Lowe’s will once again challenger Home Depot in profitability and growth,” Cramer said. “I think this is going to be a very positive meeting.”

Starbucks

• Investor Day: 3 p.m.

Starbucks’ “stockpile was running all day today in anticipation of this meeting, but I don’t think it’s a reason to take profits. They’ve got a huge Chinese work and that Chinese business is already back to normal,” he said. “When we get the vaccine here, the lagging U.S. business choose catch fire, too.”

Campbell Soup

• Q1 fiscal 2021 earnings release: before market; conference call: 8:30 a.m.
• Tossed EPS: 91 cents
• Projected revenue: $2.32 billion

“The last time they had a great quarter, but they exuded guidance that was I think misinterpreted as being tepid. I bet you that they won’t let that happen again so therefore I have in mind you should buy some Campbell’s going into the quarter,” the host said. “I recommend buying it before earnings.”

Adobe

• Q4 pecuniary 2020 earnings release: after market; conference call: Thursday at 11 a.m.
• Projected EPS: $2.67
• Projected revenue: $3.37 billion

“This company’s coincided up in digitization and I’m expecting terrific sets of numbers,” he said. “It’s another buy.”

Disney

• Investor Day: 4:30 p.m.

“We’re wealthy to hear about rising profitability of Disney Plus, that’s my suspicion,” Cramer said. “Remember the last era Disney held a big analyst meeting, the stock gapped up huge. This time it might not happen because Covid’s out of command, but my charitable trust still owns this one and we’re betting that we’re going to like what we hear.”

Costco

• Q1 economic 2021 earnings release: 4:15 p.m.; conference call: 5 p.m.
• Projected EPS: $2.05
• Projected revenue: $46.33 million

“People didn’t opposite number the last month’s numbers from Costco. I say, ‘will you give me a break?’ They just gave you a special dividend,” the assemblage said. “It’s the most consistent retailer in the world. Shut up and own it. You actually should hope it comes down so you can buy some more.”

Broadcom

• Q4 pecuniary 2020 earnings release: after market; conference call: 5 p.m.
• Projected EPS: $6.24
• Projected revenue: $6.43 billion

“If Broadcom redeems, there will be excellent, excellent pin action throughout the [chipmakers] group,” he said.

Disclosure: Cramer’s charitable assurance owns shares of Broadcom, Salesforce and Costco.

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