CNBC’s Jim Cramer was befuddled to see how good economic data was overridden on the market by uncertainty around the coronavirus outbreak.
Wall Street found out Friday that the U.S. business community created more jobs than than economist projected — 225,000 new hires compared to the 158,000 that was forecast — but investors traded stocks on worries about the coronavirus’ potential impact on the financial world and a probable slowing global economy.
The Dow Jones Industrial Average dropped 277 points, while the S&P 500 and Nasdaq Composite both declined 0.54% during the trading day.
“As much as I want to focus on the earnings next week, keep in mind that this epidemic can steal the spotlight at any given time, like it did today in spite of a phenomenal, terrific jobs report,” Cramer said on “Mad Money.”
Below is the host’s game plan for the week ahead:
Monday: Allergan, Restaurant Brands, XPO Logistics earnings
Allergan reports earnings before the morning bell. The pharmaceutical company, which is merging with AbbView in a $63 billion deal, is projected to ring up nearly $4.1 billion of revenue and produce $4.57 of earnings per share in the December quarter.
“I hope Allergan talks about its miraculous new acute migraine drug, which was just approved,” said Cramer, saying he is “betting it’s a blockbuster.”
Restaurant Brands is slated to release fourth-quarter results in the morning. The Burger King and Popeyes parent is projected to bring in $1.9 billion in revenue and yield 96 cents of profit per share.
“I’m worrying that its sales could be slowing, here,” Cramer said. “We’re seeing a real divide in the restaurant space between the haves and the have-nots, and Restaurant Brands may be slipping from the former to the latter.”
XPO Logistics is delivering its quarterly performance after the market closes. Analysts estimate $4.2 billion in sales and $1.01 of earnings per share from the transports giant.
“We want to find out if they’ve found any takers for the divisions that they’re trying to sell,” the host said. “I think it makes sense to own this one going into the quarter.”
Tuesday: Hasbro, Under Armour, Lyft earnings
Hasbro’s quarterly earnings report will come out before the market opens. The Monopoly board game parent is expected to complete $1.4 billion of sales and 90 cents of profit per share, according to FactSet.
“We need to know what they can say about China,” Cramer said. “Can the factories they need to make toys on the cheap stay open?”
Under Armour’s fourth-quarter performance will also come out in the early morning. The sports apparel retailer is expected to report $1.46 billion on the top line and return 10 cents per share to stockholders.
“I hope they’ll be able to make a comeback, but we have to stay close to their inventory issues and discontinued products,” Cramer said.
Lyft will drop its fourth-quarter report after the closing bell. The ride-hailing app is projected to collect $984 million of revenue and lose 53 cents per share, which would be an improvement from a loss of $11.32 cents per share in the same three-month period the year prior.
Wednesday: CVS Health, Barrick Gold, Shopify, Applied Materials, Cisco earnings
CVS Health has an earnings report coming out before the market opens for trading. The health retailer is estimated to register $63.9 billion in revenue and yield $1.68 of earnings per share, according to FactSet.
“We need to know about the debt paydown, about possible assets they can sell, and about the health hub expansion,” the host said. “I also want to find out how bad our regular flu season could be this year, not just the coronavirus.”
Barrick Gold has an earnings release in the early morning. The gold miner is projected to show nearly $3.7 billion on the revenue line and to return 18 cents of earnings per share.
“I’m betting the numbers will be very good, but you own a gold stock like this one to vaccinate your portfolio against economic chaos,” Cramer said.
Shopify reports earnings prior to the morning bell. The internet retailer is projected to record $482 million of revenue and 23 cents of earnings per share.
“They just keep delivering and delivering. I keep hoping the stock will come down” to give my charitable trust a “decent buying opportunity to get back in,” Cramer said. “If it pulls back after the quarter, that could be the chance to get into Shopify.”
Thursday: Pepsico, Kraft Heinz, Waste Management, Expedia Group, Nvidia, Dexcom earnings
PepsiCo reports earnings in the morning. The beverage giant is expected to bring in $20.2 billion of revenue and $1.44 of earnings per share.
Kraft Heinz reports fourth-quarter results before the market opens. The food producer is estimated to write down $6.6 billion on the revenue line and distribute 68 cents of earnings per share.
“I’d like to see some growth, acquired or otherwise … or else this stock just remains dead in the water,” Cramer said. “Kraft Heinz has become the hallmark of inconsistency.”
Waste Management also reports in the morning. Analysts expect the print to show nearly $4 billion of revenue and $1.15 EPS.
“The stock’s run in anticipation of a strong quarter on Thursday,” the host said. “If you don’t own it, I say wait.”
Expedia Group will show its financial results for the fourth quarter after the closing bell. The travel agency is projected to report $2.76 billion in sales and $1.19 EPS, according to FactSet.
“I think world travel is being paralyzed by the coronavirus outbreak, but we’ll know for sure when Expedia reports after the close,” Cramer said. “It could be very downbeat.”
Nvidia reports in the afternoon. The chipmaker is expected to show almost $2.96 billion of revenue and return $1.66 per share to stockholders.
“The stock’s had a huge run, but with its new raytracing graphics chips for gaming, I think it’s worth holding onto and I think you should buy some into weakness.”
DexCom’s fourth-quarter results come out in the after market. The medical device maker is estimated to deliver $441 million in revenue and 74 cents of earnings per share.
Friday: Newell Brands earnings
Newell Brands releases its quarterly report in the morning. The consumer goods company is expected to report about $2.58 billion in revenue and 38 cents EPS.