CNBC’s Jim Cramer prepared investors for the most momentous week of the year on Friday, gave his election week outlook and revealed his schedule for a series of quarterly earnings reports.
“I know we all want this election to be over. So get ready for a messy, confusing outcome that will lead to chaotic, confusing action in the stock market, where there are therefore many opportunities.”Bad money“Host said.
Wall Street closed a negative month of trading for the second straight month on the Friday before the November 3rd election. While large numbers of Americans have already cast ballots, experts have indicated that a presidential contest winner between President Donald Trump and former Vice President Joe Biden may not get a call on Tuesday night.
An electoral college winner may go undisclosed for days, and Cramer fears the uncertainty could weigh on stocks.
“I expect massive confusion. This is going to be a confusing week, in fact one of the most confusing weeks of my career,” he said. “Unless the results are a blowout [Tuesday]We may not know who won for days … and Wall Street hates that kind of insecurity. “
However, Cramer said it was “too late” to sell stocks after a week of widespread selling in what turned out to be the worst week for the S&P 500 since March. The market presented a “perfect buying opportunity” in Apple, Amazon and FacebookHe recommended that investors open a position on Monday and wait until after the election to buy more.
The stock market will likely “respond best to a Trump win,” but forego a Biden win in light of the Democrat’s tax proposal, the host said.
“I think you’ll buy a little on Monday when the market undoubtedly picks up some of today’s lows” and then wait to “buy something more on Wednesday if Biden wins, especially if it’s tight and Trump doesn’t give in,” said Cramer.
“Then wait until the unemployment rate on Friday to buy a third tranche of shares,” he continued. “Worst-case scenario, buy some stocks on Monday and there’s no confusion and you’ve put at least a third of your money on the stock market.”
Cramer gave viewers a glimpse of the earnings reports he circled on his calendar for the coming week. All projections are based on FactSet estimates:
- Earnings release for the first quarter of fiscal year 2021: 6:45 a.m. Conference call: 9:30 a.m.
- Projected EPS: 90 cents
- Estimated Revenue: $ 3.46 billion
“People may be stuck at home, but if you spend all day zooming in, you still want your face to look good,” Cramer said.
- Earnings release for the first quarter of the financial year 2021: before the market; Conference call: 1:30 p.m.
- Projected earnings per share: $ 2.32
- Estimated Revenue: $ 1.76 billion
“However, the stock has gone down, which is terrifying, and I say we’ll have to wait and see,” he said.
- Earnings release for the fourth quarter of the 2021 financial year: after market start; Conference call: 4:30 p.m.
- Projected earnings per share: $ 1.52
- Estimated Revenue: $ 842 million
“I expect nothing less than a blowout from this chip maker furiously trying to meet massive 5G demand,” the host said.
- Earnings release for the third quarter: 3:15 pm; Conference call: 5 p.m.
- Projected EPS: 94 cents
- Estimated Revenue: $ 5.42 billion
“I think you should wait until Tuesday to buy this if you want and you should because PayPal is the best financial technology,” he said.
- Publication of results for the third quarter: 6:30 am; Conference call: 9 a.m.
- Projected earnings per share: $ 2.81
- Estimated Revenue: $ 18.62 billion
“Lots of people are going to sell this if Biden wins, betting that the Democrats will declare war on private insurance,” Cramer said. “I say this would be an incredible buying opportunity, as it has been after any critical election that we fear the Democrats will do.”
- Q3 results publication: before the market; Conference call: 11 a.m.
- Projected earnings per share: $ 1.05
- Estimated Revenue: $ 4.22 billion
- Earnings release for the fourth quarter of fiscal year 2020: before the market; Conference call: 2 p.m.
- Projected EPS: 95 cents
- Estimated Revenue: $ 4.46 billion
“I would also like to watch Emerson and Eaton, two large industrial companies, to see what they have to say about their end markets,” he said.
- Q3 results publication: according to the market; Conference call: 4:45 p.m.
- Projected earnings per share: $ 1.17
- Estimated revenue: $ 5.9 billion
“I bet they toss it out of the park,” said Cramer. “Buy Apple before Qualcomm starts screeching because Apple is one of their biggest customers, even if they don’t get to mention Apple by name.”
- Third quarter results to be published: 4:05 pm; Conference call: 4:30 p.m.
- Projected EPS: 46 cents
- Estimated Revenue: $ 18.29 billion
- Q3 results publication: according to the market; Conference call: 5 p.m.
- Estimated losses per share: 42 cents
- Estimated revenue: $ 368 million
“T-Mobile reports, and I’m expecting fantastic numbers. Could be a good place if the election is still open,” said Cramer. “The same goes for Roku, the kingpin adored by young people.
- Earnings publication for the second quarter of the 2021 financial year: after the start of the market; Conference call: 4:30 p.m.
- Projected earnings per share: $ 1.47
- Estimated Revenue: $ 852 million
“Maybe buy a Thursday and then buy more Friday if the stock falls back on imperfect numbers,” he said.
Disclosure: Cramer’s charitable foundation owns stakes in Take-Two Interactive, Amazon, Apple, and Facebook.