Build up a cash position for the next stock sale

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CNBC’s Jim Cramer said Friday’s Labor Department job report had satisfied markets, at least for the interim.

The US economy created 379,000 jobs last month and the unemployment rate has fallen. Stocks recovered from their lows and embarked on a tough three-day trading route to end the week on a high level.

Economists had forecast that the labor market will grow by 210,000 in February.

“A job number that is strong but not too strong was exactly what this crazy market needed today, although it took Wall Street half a day to figure that out,” Cramer said after graduating from Mad Money.

The major stock indices all rose nearly 2% at close of trading after trading in the red that morning. The Dow Jones Industrial Average rose 572 points, or 1.85%, to close at 31,496.30. After a volatile week, it rose 1.82%. The S&P 500 rose 1.95% to 3,841.94 on Friday and also ended the week in positive territory.

After closing on Red Thursday, the Nasdaq Composite rebounded 1.55% to 12,920.15 on Friday. The tech-heavy index ended the week down 2.06% as growth stocks sold out.

As the U.S. continues to rebound from coronavirus-induced business closings and restrictions last year, February’s labor report likely didn’t do enough to persuade the Federal Reserve to hike interest rates to curb inflation amid economic growth, Cramer said .

“It was a Hidden Goldilocks report: thanks to the vaccine rollout and reopening, a lot more people will be hired, but not so many that the Fed will be forced to raise interest rates and some will really be left behind.” he said.

Wall Street is on standby to see if the uptrend continues or the downward trend in stocks resumes. The bond market remains in control, however, as investors continue to move from high-growth stocks to high-value and cyclical names until rising government bond yields stabilize, Cramer added.

Long-term government bonds are an important factor in lending rates. Higher interest rates make cyclical stocks more attractive and result in investors having less appetite for riskier assets.

“I bet the Bond bullies will be back. So get ready by taking advantage of rallies like this to relax, as we did at the end of the day for my charitable trust and certainly the soaring dreamer stocks and improve the SPACs, “he said. “That way, you have some cash for the real business the next time we get hammered like yesterday afternoon.”

Cramer announced his schedule for the coming week. The forecasts for earnings per share are based on FactSet estimates:

Monday: stitch correction

Stitch fix

  • Q2 2021 Results to be published: after the start of the market; Conference call: 5 p.m.
  • Estimated losses per share: 22 cents
  • Estimated Revenue: $ 512 million

“A great neighborhood isn’t going to create the kind of explosive reaction we had last time,” said Cramer. “Still, I’ll bet the numbers are better than expected because this is great business.”

Tuesday: Dick’s sporting goods

Dick’s sporting goods

  • Earnings release for the fourth quarter of 2020: ahead of the market; Conference call: 10 a.m.
  • Projected earnings per share: $ 2.30
  • Estimated Revenue: $ 3.07 billion

“I expect Dick’s to come up with a very strong number that could blow up the stock,” he said.

Wednesday: Campbell Soup, Oracle

Campbell soup

  • Q2 2021 results to be published: before the market; Conference call: 8:00 a.m.
  • Projected EPS: 83 cents
  • Estimated Revenue: $ 2.3 billion

“So far, they haven’t impressed those pantries,” said Cramer. “I can’t break the prevailing wisdom here, although I think this company has won enough of the stay-at-homers with its snack offerings that you don’t get so disappointed and get that 3.2% return on investment.”

oracle

  • Q3 2021 Results publication: After Market; Conference call: 5 p.m.
  • Projected earnings per share: $ 1.11
  • Estimated Revenue: $ 10.05 billion

“These are exactly the kind of lower-risk technology stocks that people suddenly start liking … [as opposed to] the high-flyers, “he said.” These are still being torn to pieces so I was ready to recommend Oracle [tonight]but I was hit all the way. A big brokerage house pushed it up today, increased its stock 6% and stole my thunder. “

Thursday: JD.com, Ulta Beauty

JD.com

  • Q4 results published: before the market; Conference call: 7 a.m.

Cramer said JD.com is “one of the few Chinese stocks I like because it’s a different Amazon of China thing. It’s like Alibaba, which you know I like, but it has one faster growth. “

Ulta Beauty

  • Q4 release of results: according to the market; Conference call: 5 p.m.
  • Projected earnings per share: $ 2.32
  • Estimated Revenue: $ 2.07 billion

“It’s about to see a sales explosion when the country reopens. Ulta switched to e-commerce when the pandemic broke out … but now that we’re being vaccinated, brick and mortar business can make a comeback,” he said . “They’re also launching a new Target collection. I’d be a buyer before this quarter.”

Disclosure: Cramer’s nonprofit Rost owns shares in Amazon.

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