That is the time to take a position
CNBC’s Jim Cramer said the time has come to take some risk in the market with U.S. drug regulatory approval for Covid-19 vaccines imminent.
“If you want to speculate, this is the time to speculate wisely,” said the Mad Money host. “You have my blessings to buy stocks in weakness as we near the long-awaited vaccine, even if the much-needed stimulus bill is still in the air.”
The comments come after another mixed trading session on the stock market and conclude a week in which all major averages were down and the Russell 2000 rose for the sixth straight week. The Dow Jones rose 0.16% to 30,046.37. The S&P 500 fell 0.13% to 3,663.46 on the third day of declines and the Nasdaq Composite fell 0.23% to 12,377.87.
The day was volatile as some investors traded with vaccination hopes while others traded with uncertainty over ever-rising daily coronavirus cases and economic defenses in Congress, Cramer said.
The Food and Drug Administration is expected to approve Pfizer and BioNTech’s vaccine soon.
“The market has scaled back expectations, so if we actually reach an economic compromise next week, stocks could come back,” Cramer said.
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:
“If AbbVie can come up with some good numbers for its newer drugs that could replace Humira, it will ease the pressure from that drug and the company, and I think the stock could go up,” said Cramer.
Tuesday: Elanco analyst meeting
Elanco animal health
“This is a veterinary game and if CEO Jeff Simmons has anything new the stock could catch up,” said Cramer.
Wednesday: Lennar, Herman Miller revenue
- Earnings release for the fourth quarter of fiscal year 2020: After Market; Conference call: Thursday, 11 a.m.
- Projected earnings per share: $ 2.36
- Estimated Revenue: $ 6.53 billion
- Earnings release for the second quarter of the 2021 financial year: after the start of the market; Conference call: 9:30 a.m.
- Projected EPS: 57 cents
- Estimated revenue: $ 585 million
“We know Toll Brothers had a very good quarter this week and the stock has only just been crushed,” said Cramer. “If Lennar and Herman Miller aren’t selling hard to improve their results, I suggest you take a pass. You’re going to hear too much gossip about these last good quarters, or maybe the penultimate good quarters. I think that’s wrong. “
Thursday: Accenture, General Mills, Rite Aid, FedEx, Jabil earnings
- Earnings release for the first quarter of fiscal year 2021: 6:45 a.m. Conference call: 8 a.m.
- Projected earnings per share: $ 2.05
- Estimated Revenue: $ 11.29 billion
“We’re starting with Accenture, the information technology outsourcing consultant with one stock that is tending to be impacted by earnings,” said Cramer. “It was always a great entry point.”
- Earnings release for the second quarter of the financial year 2021: before the market; Conference call: 9 a.m.
- Projected EPS: 97 cents
- Estimated Revenue: $ 4.64 billion
“The market sure didn’t like Campbell Soup’s numbers, but I’ll bet General Mills will be better received,” he said. “Watch your pet food business … We know this category is on fire.”
- Earnings release for the third quarter of the 2021 financial year: 7 a.m.; Conference call: 8 a.m.
- Projected EPS: 1 cent
- Estimated Revenue: $ 5.84 billion
- Earnings release for the second quarter of fiscal year 2021: 4:45 p.m. Conference call: 5:30 p.m.
- Projected earnings per share: $ 3.93
- Estimated Revenue: $ 19.37 billion
“We know that RAD (Rite Aid) will be one of the main distributors of the vaccine alongside CVS and Walgreens. We also know that FedEx will ship this product everywhere. It’s not a big needle maker, however,” he said. “This is bad news for Rite Aid because they are being beaten by CVS and Walgreens … but it’s good news for FedEx with its thriving e-commerce business.”
- Earnings release for the first quarter of the financial year 2021: before the market; Conference call: 8:30 a.m.
- Projected earnings per share: $ 1.27
- Estimated Revenue: $ 7.03 billion
“People will try to extrapolate the success of the iPhone 12 from [supplier] Jabil, but it’s agonizing because they can’t mention the word Apple by name, “Cramer said.” Even so, the analysts will find out and they will update theirs [Apple] Forecasts on Friday. “
Friday: Darden, Nike revenue
- Earnings release for the third quarter of the financial year 2021: before the market; Conference call: 8:30 a.m.
- Projected EPS: 71 cents
- Estimated revenue: $ 1.7 billion
“I expect them to say good things, but it might not matter at this point, especially since the stock has risen sharply since the time they cut the dividend,” said Cramer.
- Earnings release for the second quarter of the financial year 2021: 4:15 p.m. Conference call: 5 p.m.
- Projected EPS: 62 cents
- Estimated revenue: $ 10.55 billion
“Nike should be reporting a fabulous number as all physical store markets are returning and direct customer business is on fire,” he said. “I would be shocked if Nike didn’t destroy the estimates.”
Disclaimer of liability
Disclosure: Cramer’s charitable foundation owns shares in AbbVie, Nike, CVS, and Apple.
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