The Fed’s actions could lead to a market rally

CNBC’s Jim Cramer told investors Monday that the Federal Reserve’s actions could lead to a bull market this week.

“If [Fed Chair] Jerome Powell says: ‘We get a rate hike of 75 basis points and then we’ll see what happens’…

“On the other hand, if he says we’re doing the triple rate hike and then we’re willing to keep tightening anyway, including a possible hike between meetings if the CPI stays high, then we’re definitely going lower,” he added, citing higher-than-expected inflation of 9.1% in June.

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

Cramer also provided a preview of this week’s results. All earnings and revenue estimates are from FactSet.

Tuesday: General Electric, Alphabet, Microsoft

General Electric

  • Q2 2022 earnings figures at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Expected earnings per share: 37 cents
  • Expected Revenue: $17.36 Billion

Cramer said he is not optimistic about GE yet.

Alphabet

  • Q2 2022 earnings figures at 4 p.m. ET; conference call at 5 p.m. ET
  • Expected Earnings Per Share: $1.27
  • Expected Revenue: $69.87 Billion

Microsoft

  • Q4 2022 earnings figures at 4:05 PM ET; conference call at 5:30 PM ET
  • Expected earnings per share: $2.29
  • Expected Revenue: $52.39 Billion

Cramer said he believes both Alphabet and Microsoft could have standout quarters.

Wednesday: Boeing, Meta, Ford, ServiceNow

Boeing

  • Q2 2022 earnings figures 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 doubts Boeing will report a solid quarter given ongoing worker strikes and no federal green light for its 787 Dreamliner commercial jets.

meta

  • Q2 2022 earnings figures at 4:05 PM ET; conference call at 5 p.m. ET
  • Expected Earnings Per Share: $2.55
  • Expected Revenue: $28.92 Billion

Meta is likely to report a drop in earnings and a forecast cut, Cramer predicted. “However, once expectations get low enough for the metaverse, the stock becomes a solid buy,” he said.

Ford

  • Q2 2022 earnings figures at 4:05 PM ET; conference call at 5 p.m. ET
  • Expected earnings per share: 45 cents
  • Expected Revenue: $37.20 Billion

Cramer thinks the automaker will report that many models are sold out.

Service now

  • Q2 2022 earnings figures at 4:10 PM ET; conference call at 5 p.m. ET
  • Expected earnings per share: $1.55
  • Expected Revenue: $1.76 Billion

“We had CEO Bill McDermott last month and he talked about tougher times in Europe. His stocks were hit hard in response – now we’ll see if that was an overreaction,” he said.

Thursday: Apple, Amazon

Apple

  • Q3 2022 earnings figures at 4:30 p.m. ET; conference call at 5 p.m. ET
  • Expected Earnings Per Share: $1.16
  • Expected Revenue: $82.73 Billion

“Own it, don’t trade it in,” Cramer said.

Amazon

  • Q2 2022 earnings figures at 4 p.m. ET; conference call at 5:30 PM ET
  • Expected earnings per share: 12 cents
  • Expected Revenue: $118.98 Billion

Cramer said Amazon’s stock price could open “very low” in Tuesday’s market after Walmart cut its earnings outlook Monday, pulling the e-commerce giant’s shares down after hours.

Friday: Chevron, Procter & Gamble

Chevron

  • Q2 2022 profit figures at tbd time; conference call at 11 a.m. ET
  • Expected Earnings Per Share: $5.08
  • expected revenue; $58.66 billion

Cramer said he believes Chevron will deliver great results in the last quarter, even as analysts are becoming increasingly skeptical about the company’s ability to perform.

Procter & Gamble

  • Q4 2022 earnings figures at 6:55 am ET; conference call at 9 a.m. ET
  • Expected Earnings Per Share: $1.22
  • Expected Revenue: $19.41 Billion

“If Procter comes in, I’d consider that a buying opportunity — after it’s been reported, though,” Cramer said.

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

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