Cramer’s week ahead: FedEx warning shows Fed is further ahead in fighting inflation than expected

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CNBC’s Jim Cramer said Friday that FedEx’s warning of worsening economic conditions suggests the Federal Reserve is doing better than expected in its inflation effort — meaning the central bank could take a step back after its meeting next week.

“If Fed Chief Jay Powell looked at our interview last night… he might find that he’s made more progress beating inflation than he realizes,” Cramer said.

“Maybe Powell will give us another 75 basis point increase here and then say it might be time to take a more measured approach to assessing how things are going,” he added.

The comments from the “Mad Money” host came after FedEx, a leading company for the state of the economy, warned on Thursday of a drop in global shipments and an impending global recession.

Shares closed Friday as Wall Street processed the news, with the major averages recording their fourth week of losses in the past five weeks.

Cramer also provided a preview of next week’s earnings. All earnings and revenue estimates are from FactSet.

Monday: AutoZone

  • Q4 2022 earnings figures at 6:55 am ET; conference call at 10 a.m. ET
  • Expected earnings per share: $38.5
  • Expected Revenue: $5.16 Billion

Cramer said he is interested to know if company officials see an end to the car shortage.

Tuesday: Nvidia

  • GTC Financial Analyst Q&A at 1pm ET

Cramer said he will remain with Nvidia despite the stock’s recent declines. “That’s how Nvidia behaves — you get terrifyingly fast moves down followed by long rallies.”

Wednesday: General Mills, Salesforce, Lennar, KB Homes

General Mills

  • Q1 2023 earnings figures at 7:00 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $1
  • Expected Revenue: $4.72 Billion

The company is likely to be a winner as it is a best-of-breed food stock in an uncertain economic environment, Cramer predicted.

Sales team

  • Investor Day at 4 p.m. ET

Cramer said that while he doesn’t expect to hear anything that might motivate him to buy the stock, he is still optimistic in the long run.

Lennar

  • Q3 2022 earnings figures at 4:30 PM ET; conference call on Thursday at 11 a.m. ET
  • Expected earnings per share: $4.86
  • Expected Revenue: $8.97 Billion

KB Home

  • Q3 2022 earnings figures between 4:10 PM and 4:20 PM ET; conference call at 5 p.m. ET
  • Expected Earnings Per Share: $2.66
  • Expected Revenue: $1.88 Billion

Cramer said he expects both Lennar and KB Home to be soft on rising mortgage rates.

Thursday: Costco, FedEx, Qualcomm

Costco

  • Q4 2022 earnings figures at 4:15 PM ET; conference call at 5 p.m. ET
  • Expected Earnings Per Share: $4.17
  • Expected Revenue: $70.8 Billion

Cramer said he hopes the stock falls so the Investing Club can buy more.

FedEx

While the company could reveal more information about its latest quarter, the trajectory is unlikely to change as it already reported disappointing results in its preliminary announcement, Cramer said.

Qualcomm

  • Automotive Investor Day at 3 p.m. ET

Cramer said the company will show off the “new Qualcomm” at the event.

Disclaimer: Cramer’s Charitable Trust owns shares of Costco, Salesforce, Nvidia and Qualcomm.

Cramer's game plan for the September 19 trading week

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