Jim Cramer of CNBC said the Department of Labor’s job report on Friday satisfied markets, at least for the interim period.
The US economy added 379,000 jobs last month and the unemployment rate fell, with stocks recovering from the day’s lows and making a difficult three-day trading period to end the week.
Economists had predicted that the labor market would grow by 210,000 in February.
“A strong but not-too-strong number of jobs was exactly what this crazy market needed today, although it took half a day for Wall Street to find out,” Cramer said after the program closed. “Mad Money.”
Most stock indices rose nearly 2% more at the close after trading in the red during the morning. The Dow Jones industrial average added 572 points, or 1.85%, to close at 31,496.30, ending with 1.82% after a volatile week. The S&P 500 advanced 1.95% on Friday to 3,841.94, also ending the week in positive territory.
After closing in the red on Thursday, the Nasdaq Composite returned 1.55% to 12,920.15 on Friday. The strong technology index ended the week down 2.06% as rising stocks sold out.
As the US continues to recover from last year’s coronavirus blockages and restrictions, the February employment report probably did not do enough to push the Federal Reserve to raise interest rates to lower inflation as the economy grows, said Cramer.
“It was a hidden Goldilocks report: many more people are employed due to the vaccine launch and reopening, but not so many that the Fed feels compelled to raise interest rates, and some are even left behind,” he said.
Wall Street is waiting to see if the upward trend will continue or the downward trend in stocks will resume. However, the bond market is still under control as investors continue to rotate from high-growth stocks to cyclical stocks and names to stabilizing Treasury yields, Cramer added.
Longer-term treasuries are an important factor in lending rates. Higher rates make cyclical stocks more attractive, prompting investors to reduce their appetite for riskier assets.
“I bet the bondholders will be back, so get ready using rallies like this to ease, as I did for my charity at the end of the day, and certainly relieve yourself of the stocks of dreamers in flight, and SPACs, “he said.” That way, you’ll have some money to earn for real companies next time we’ll be pinched like we did yesterday afternoon. “
Cramer gave his game plan for next week. Earnings-per-share projections are based on FactSet estimates:
Monday: Stitch Fix
- Launch of Q2 2021 earnings: by market; phone call: 17:00
- Projected losses per share: 22 cents
- Projected revenue: $ 512 million
“A great quarter won’t produce the kind of explosive reaction we had last time,” Cramer said. “However, I bet the numbers are better than expected, because this is a great deal.”
Tuesday: Dick’s sports products
- Launch of earnings for the fourth quarter of 2020: before the market; conference call: 10 am
- Designed EPS: $ 2.30
- Projected revenue: $ 3.07 billion
“I expect Dick to deliver a very strong number, one that could send the stock in flight,” he said.
Wednesday: Campbell Soup, Oracle
- Launch of Q2 2021 earnings: before the market; phone call: 8:00 am
- Designed EPS: 83 cents
- Projected revenue: $ 2.3 billion
“So far, these pantry stocks have failed to impress them,” Cramer said. “I can’t oppose the prevailing wisdom here, although I think this company has won enough snack offers to not be so disappointed and you’ll get a 3.2% yield.”
Oracle
- Launch of earnings for Q3 2021: by market; phone call: 17:00
- Designed EPS: $ 1.11
- Projected revenue: $ 10.05 billion
“This is exactly the kind of lower-risk technology stock that people suddenly like … [as opposed to] high flying, “he said.” Those are still torn to pieces, so I was ready to recommend Oracle [tonight], but I was punched. A big brokerage house pushed it today, it sent the stock with 6%, it stole my thunder “.
Thursday: JD.com, Ulta Beauty
- Q4 earnings launch: ahead of the market; phone call: 7 in the morning
Cramer said JD.com is “one of the few Chinese stocks I like, because it’s another ‘Amazon from China’ thing. It’s like Alibaba, which you know I like, but it’s growing faster, though.”
Ulta Beauty
- Launch of Q4 earnings: by market; phone call: 17:00
- Designed EPS: $ 2.32
- Projected revenue: $ 2.07 billion
“They are about to experience a sales explosion when the country reopens. Ulta pivoted into e-commerce when it hit the pandemic … but now, when we get vaccinated, their brick and mortar business can return,” he said. . “In addition, it is launching a new Target collection. I would be a buyer before that quarter.”
Disclosure: Cramer’s Charity Rust owns Amazon shares.
Disclaimer
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Do you want to dive deep into Cramer’s world? Hit him!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the “Crazy Money” site? [email protected]