A tight March labor report could lead the Fed to hike 50 basis points
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A tight March labor report could lead the Fed to hike 50 basis points

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CNBC’s Jim Cramer warned Friday that a 50 basis point rate hike could come if the March labor report to be released next Friday reveals a tighter job market than ever.

“I fear it will show the tightest labor market in 50 years. … If Fed chief Jay Powell doesn’t take a break when it comes to inflation, then it will be rate hikes of 50 basis points as far as the eye can see,” the said. host of ‘Mad Money’.

“Even if we get a lot of inflation data next week, I think it will already be reflected in the stock market as we have come to accept the fact that the Federal Reserve is on a mission” to curb inflation, he added.

Cramer’s comments come after traders forecasted half-point rate hikes in May and June in response to Fed Chair Jerome Powell’s pledge Monday to act aggressively against skyrocketing inflation.

The Dow Jones Industrial Average rose 0.4% on Friday, while the S&P rose 0.5%. The Nasdaq Composite fell 0.2% lower. All three major averages rose for the second consecutive week.

Market rallies this week have been driven by investors who hope Russia will stop its invasion of Ukraine and are “terrified they won’t own enough shares in the unlikely event that peace breaks out over the weekend,” Cramer said.

He also provided a preview of the list of companies reporting quarterly results next week. All earnings and revenue estimates are from FactSet.

Monday: Dave & Buster’s

Dave & Buster’s

  • Q4 2021 profit figures after closing; conference call on Tuesday at 8:30 a.m. ET
  • Expected earnings per share: 61 cents
  • Expected Revenue: $364 million

“It’s restaurant stocks as well as retailers, and two have become pariahs in this market….Let’s hear what they have to say,” Cramer said.

Tuesday: McCormick, Micron, Lululemon, PVH, RH

McCormick

  • Q1 2022 earnings figures at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Expected earnings per share: 62 cents
  • Expected Revenue: $1.47 Billion

Cramer said he expects the company to report large numbers due to the popularity of hybrid work that keeps people cooking at home.

Micron

  • Q2 2022 earnings figures after closing; conference call at 4:30 p.m. ET
  • Expected Earnings Per Share: $1.98
  • Expected Revenue: $7.53 Billion

Micron could “tell a story about demand coupled with not enough new supply to disrupt Apple’s pricing,” Cramer said, adding that he believes the stock is a buy for investors interested in domestic semiconductor stocks.

lululemon

  • Earnings Q4 2021 at 4:05 PM ET; conference call at 4:30 p.m. ET
  • Expected Earnings Per Share: $3.27
  • Expected Revenue: $2.14 Billion

“Maybe they can stop sales with this conference call,” Cramer said. “It’s been its own private bear market.”

PVH

  • Q4 2021 profit figures after closing; conference call on Wednesday at 9 a.m. ET
  • Projected EPS: $2.00
  • Expected Revenue: $2.38 Billion

Cramer said he doesn’t expect a big quarter from PVH, noting that the stock had “crumbled.”

RH

  • Q4 2021 profit figures after closing; conference call at 5 p.m. ET
  • Expected earnings per share: $5.59
  • Expected Revenue: $931 Million

RH will crush the numbers again this quarter, Cramer predicted.

Wednesday: Paychex, Five Below

paychex

  • Q3 2022 earnings figures before the bell; conference call at 9:30 a.m. ET
  • Expected Earnings Per Share: $1.05
  • Expected Revenue: $1.22 Billion

“This company has a history of delivering beat and raise quarters. With this red-hot job market, I doubt they can be a disappointment,” Cramer said.

Five below

  • Q4 2021 earnings figures at 7:00 a.m. ET
  • Investor Day at 9 a.m. ET
  • Expected earnings per share: $2.48
  • Expected Revenue: $1.01 Billion

“A lot of analysts have been praising this lately. I suspect that means they’re going to have good numbers because Wall Street hasn’t been too enthusiastic about retail in general,” Cramer said.

Thursday: Walgreens Boots Alliance

Walgreens Boots Alliance

  • Q2 2022 earnings figures at 7:00 a.m. ET; conference call at 8:30 a.m. ET
  • Expected Earnings Per Share: $1.37
  • Expected Revenue: $33.18 Billion

Cramer said he hopes Walgreen’s competitor CVS will catch up. “What is Walgreens going to do to challenge them? I don’t know, let’s find out.’ He said.