Don’t be a ‘hero’ while the Fed fights inflation

CNBC’s Jim Cramer warned investors Friday not to add more to their portfolios until the stock market and the economy become less volatile.

“This economy is a runaway train; it crashed through the Fed’s blockade today, so now they might be blowing tracks to block everything darn. When they do explode, it’s safe to buy. Until then, I urge you don’t want to be a hero,” he said.

Cramer warned that he expects central bank officials to stick to their hawkish stance on inflation, adding that the Producer Price Index and the Consumer Price Index due next week may shed more light on the state of inflation and the Fed’s next moves.

Stocks fell on Friday after the September jobs report indicated that the labor market is strengthening despite strong interest rate increases by the central bank.

“There is always the possibility that this is the last very exciting work number, in which case the Fed is closing in on the cliff and the damage could be catastrophic,” he said.

Cramer also reviewed the earnings list for the coming week. All earnings and revenue estimates are provided by FactSet.

Wednesday: PepsiCo

• Announcing Q3 2022 earnings at 6 a.m. ET; Conference call at 8:15 a.m. ET
• Expected EPS: $1.84
• Expected revenue: $20.81 billion

Cramer said he hopes the company will report that its upfront costs are declining.

Thursday: Delta Airlines, Greens Boats Alliance, Domino’s Pizza, Black Rock

Delta Airlines

• Q3 2022 earnings announcement at 6:30 a.m. ET; Conference call at 10 a.m. ET
• Expected EPS: $1.55
• Expected revenue: $12.90 billion

Cramer predicted that the company was likely to be concerned about rising oil prices.

Walgreens Boots Alliance

• Announcement of Q4 2022 earnings at 7 AM ET; Conference call at 8:30 a.m. ET
• Expected EPS: 77 cents
• Expected revenue: $32.09 billion

Domino’s Pizza

• Q3 2022 earnings announcement at 7:30 a.m. ET; Conference call at 10 a.m. ET
• Expected EPS: $2.98
• Expected revenue: $1.07 billion

He said he believes both Walgreens and Domino’s are dealing with labor shortages.

Black stone

• Announcing Q3 2022 earnings at 6:15 a.m. ET; Conference call at 8:30 a.m. ET
• Expected EPS: $7.64
• Expected revenue: $4.3 billion

Cramer said he’s betting the company will report great results and that he’ll be a buyer of the stock.

Friday: JPMorgan Chase, Wells Fargo, Morgan Stanley, UnitedHealth Group

c. B. Morgan Chase

• Announcing Q3 2022 earnings at 7 a.m. ET; Conference call at 8:30 a.m. ET
• Expected EPS: $2.92
• Expected revenue: $32.13 billion

Wells Fargo

• Announcing Q3 2022 earnings at 7 a.m. ET; Conference call at 10 a.m. ET
• Expected EPS: $1.10
• Expected revenue: $18.76 billion

Morgan Stanley

• Q3 2022 earnings announcement at 7:30 a.m. ET; Conference call at 9:30 a.m. ET
• Expected EPS: $1.52
• Expected revenue: $13.24 billion

“With employment rates continuing to rise, it’s entirely possible that banks could do murders here without taking much risk with bad loans,” Kramer said.

United Health Group

• Q3 2022 earnings announcement at 5:55 a.m. ET; Conference call at 8:45 a.m. ET
• Expected EPS: $5.43
• Expected revenue: $80.52 billion

While he believes the quarter will be strong, he expects the stock to fall if the company’s results are less than perfect.

Disclaimer: Cramer Charitable Fund owns shares in Morgan Stanley and Wells Fargo.