Fed actions could send the market higher

CNBC’s Jim Kramer told investors Monday that the Fed’s actions this week could lead to a bull market.

“if [Fed Chair] Jerome Powell said, “We get 75 basis points for a rate hike and then we’ll see what happens”…and then you might get a sharp hike,” the ‘Crazy Money’ host said.

“On the other hand, if he says we are triple rate hikes, and then we are willing to continue tightening no matter what, including a potential rise between meetings if CPI stays flat, we are definitely down,” he added, Referring to a higher-than-expected June inflation reading of 9.1%.

The Federal Reserve will conclude its two-day meeting on Wednesday, and many analysts expect a 75 basis point rate hike.

Cramer also reviewed this week’s earnings list. All earnings and revenue estimates are provided by FactSet.

Tuesday: General Electric, Alphabet, Microsoft

General Electric

  • Announcement of Q2 2022 earnings at 6:30 a.m. ET; Conference call at 8 a.m. ET
  • Expected EPS: 37 cents
  • Expected revenue: $17.36 billion

Cramer said he’s not optimistic about GE — yet.

the alphabet

  • Announcement of Q2 2022 earnings at 4 PM ET; Conference call at 5 p.m. ET
  • Expected EPS: $1.27
  • Expected revenue: $69.87 billion

Microsoft

  • Q4 2022 earnings release at 4:05 PM ET; Conference call at 5:30 p.m. ET
  • Expected EPS: $2.29
  • Expected revenue: $52.39 billion

Cramer said he believes both Alphabet and Microsoft could have a prominent role.

Wednesday: Boeing, Mita, Ford, Surface Now

Boeing

  • Announcement of Q2 2022 earnings at 7:30 a.m. ET; Conference call at 10:30 a.m. ET
  • Expected loss: Loss of 13 cents per share
  • Expected revenue: $17.57 billion

He said he doubted Boeing would report a strong quarter given the ongoing strikes by workers and the lack of a federal traffic light for its 787 Dreamliner commercial planes.

dead

  • Q2 2022 earnings release at 4:05 PM ET; Conference call at 5 p.m. ET
  • Expected EPS: $2.55
  • Expected revenue: $28.92 billion

Kramer expected Meta to likely announce a profit outperformance and anticipate a cut. “Once the outlook drops low enough, though, for metaverses, then the stock becomes a solid buy,” he said.

stronghold

  • Q2 2022 earnings release at 4:05 PM ET; Conference call at 5 p.m. ET
  • Expected EPS: 45 cents
  • Expected revenue: $37.20 billion

Cramer thinks the automaker will report selling several of its models.

Service now

  • Q2 2022 earnings release at 4:10 PM ET; Conference call at 5 p.m. ET
  • Expected EPS: $1.55
  • Expected revenue: $1.76 billion

“We had CEO Bill McDermott last month, and he talked about tough times in Europe. His stock has been hit hard – now we’ll find out if that was an overreaction,” he said.

Thursday: Apple, Amazon

apple

  • Announcement of third-quarter 2022 earnings at 4:30 p.m. ET; Conference call at 5 p.m. ET
  • Expected EPS: $1.16
  • Expected revenue: $82.73 billion

Own it, don’t trade it, Kramer said.

Amazon

  • Announcement of Q2 2022 earnings at 4 PM ET; Conference call at 5:30 p.m. ET
  • Expected EPS: 12 cents
  • Expected revenue: $118.98 billion

Cramer said Amazon’s stock price could open “very low” when the market opens on Tuesday after Walmart Lowering its earnings forecast On Monday, sending the e-commerce giant’s shares down after hours.

Friday: Chevron and Procter & Gamble

chevron

  • Announcing Q2 2022 earnings at a time to be determined; Conference call at 11 a.m. ET
  • Expected EPS: $5.08
  • Expected revenue is $58.66 billion

Kramer said he believes Chevron will deliver impressive results in the fourth quarter, even if analysts are increasingly skeptical of the company’s ability to perform.

Procter & Gamble Company

  • Q4 2022 earnings announcement at 6:55 a.m. ET; Conference call at 9 a.m. ET
  • Expected EPS: $1.22
  • Expected revenue: $19.41 billion

“If Procter comes in, I’ll treat that as a buying opportunity – after you report,” Kramer said.

Disclosure: Cramer’s Charitable Trust owns shares in Apple, Alphabet, Amazon, Chevron, Ford, Meta, Microsoft, and Procter & Gamble.

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