CNBC’s Jim Cramer said Friday that the stock market continues to be in a feeble position, the bond sector is flashing a warning signal and the financial investment local community must be geared up for much more coronavirus uncertainty.
The Dow Jones Industrial Average, now in correction territory, fell extra than 1,000 in intraday trading right before staging a late rally to shut Friday’s session down 357 details, or 1.39%. The 30-inventory index dropped a total of 3,938.67 details in the previous 5 investing times, capping off the worst 7 days on Wall Road considering the fact that the 2008 money disaster.
Dollars professionals unloaded their inventory portfolios and set their funds in safe and sound-haven devices these types of as bonds, causing fascination prices to fall in close proximity to report lows. The benchmark U.S. 10-calendar year Treasury generate — bond yields go inversely to costs — was final at 1.16%.
“In other words, the bond market’s screaming that the coronavirus is much even worse than most men and women recognize, international commerce will choose a authentic strike and it may possibly even be some thing equivalent to 2008 when all hell broke loose,” the “Mad Cash” host claimed. “I cannot notify you regardless of whether the bond market’s proper. I’m not an epidemiologist, but I know the markets.”
Cramer gave a preview of the corporate earnings and economic news that are circled on his calendar upcoming 7 days.
“Get all set for yet another tough day on Monday simply because I count on extra COVID-19 shoes to drop this weekend,” Cramer explained. “You have acquired to be ready for a snapback [rally], however, if we continue to keep getting so negative.”
The below forecasts are based mostly on analyst estimates, according to FactSet.
Monday: Tilray earnings
Tilray: $55.3 million in revenue, 36 cents of losses for every share
“The complete ganja group’s been put by the meat grinder,” Cramer reported. “Tilray, in particular, [has] been a nightmare.”
Tuesday: Goal, Kohl’s, Ross Merchants, Veeva Systems earnings
Goal: $23.4 billion in product sales, $1.65 of earnings per share
The retail chain’s holiday gross sales fell properly small of expectations. Cramer mentioned he is not expecting significantly from the quarterly report.
Kohl’s: $6.5 billion in revenue, $1.88 EPS
Ross Retailers: $4.36 billion in product sales, $1.26 EPS
“That could be a brilliant spot,” Cramer said. “I guess it can hold in there, due to the fact these off-price tag chains tend to thrive in a weaker economic climate and the bond sector says that is what we’re headed for.”
Veeva Devices: $298 million in income, 52 cents EPS
“If Veeva rallies, you can count on it to breathe new daily life into the entire cloud cohort,” Cramer reported. “The cloud stocks have been acting terribly, right up until right now, and many of them had superb quantities. Perhaps they can continue to go up if Veeva does effectively.”
Wednesday: Greenback Tree, Campbell Soup, Brown-Forman earnings
Dollar Tree: $6.39 billion in product sales, $1.75 EPS
Cramer stated “their final quarter was not up to snuff, and I was unhappy. I’m not positive they can turn matters all around in three months.”
Campbell Soup: $2.15 billion in profits, 66 cents EPS
“Canned soup can make a ton of perception if the coronavirus gets to be a comprehensive-blown pandemic, so I assume their outlook could be bullish,” Cramer claimed.
Brown-Forman: $954 million in profits, 50 cents EPS
Splunk: $783 million in income, 97 cents EPS
Zoom Movie Communications: $237 million in sales, 8 cents EPS
Thursday: Kroger, Burlington Outlets, Costco, Okta earnings
Kroger: $28.8 billion in product sales, 55 cents EPS
Burlington Stores: $2.2 billion in sales, $3.23 EPS
“I wager the quantities will be superb,” Cramer said.
Costco: $38.2 billion in income, $2.07 EPS
“I anticipate great success. Far more vital, I consider you may well get a strong outlook,” Cramer mentioned.
Okta: $206 million in profits, 4 cents of losses per share
“I anticipate excellent items,” he explained.
Friday: Positions report
Stocks could offer off if there is an uptick in unemployment in the U.S. Labor Department’s nonfarm payroll report for February, Cramer reported.
“I you should not think that will occur,” he explained. “Unemployment tends to be a lagging indicator, but if it does … you might want to obtain into that sell-off.”
Disclosure: Cramer’s charitable rely on owns shares of Costco.