Cramer’s week ahead: Brace for negativity

CNBC’s Jim Cramer on Friday advised investors to brace themselves against Wall Street’s negativity next week as concerns over a possible recession mount.

“I do believe that our economy’s headed for a slowdown — that’s just what rate hikes do. But a slowdown doesn’t necessarily translate into a horrific, crash-landing recession. … There are many ways this situation can play out that don’t end in a full-blown recession,” the “Mad Money” host said.

“Regardless of what happens next week, Wall Street’s going to remain in good news, bad news mode. … So, perhaps you should steel yourself for the negativity,” he later added.

Key parts of the Treasury yield have inverted this week, raising concerns that the economy is headed for a recession. Yield curve inversions have historically preceded recessions but are not guaranteed indicators.

The Dow Jones Industrial Average rose 0.4% on Friday while the S&P 500 gained 0.34%. The Nasdaq increased 0.29%.

Cramer also previewed next week’s slate of companies reporting quarterly earnings, as well as other events relevant to the market.

All earnings and revenue estimates are courtesy of FactSet.

Monday: U.S. Census Bureau’s Durable Goods report

• Report release at 10:00 a.m. ET

“If it’s strong, I can tell you it will be pronounced as the last good number” of a cycle on its last legs, Cramer said. “If it’s bad, it’ll be the first bad number of the apocalypse.”

Tuesday: Acuity Brands, Greenbrier Companies

Acuity Brands

• Q2 2022 earnings release at 6 a.m. ET; conference call at 8 a.m. ET
• Projected EPS: $2.38
• Projected revenue: $885 million

“Last time they did well, but thanks to the inverted yield curve, this time if they say things are good, they will be branded as hopeless optimists on their conference call unless they tell a truly depressing story,” Cramer said.

Greenbrier Companies

• Q2 2022 earnings release; conference call on Wednesday at 11 a.m. ET
• Projected EPS: 19 cents
• Projected revenue: $576 million

Cramer said that he’ll be keeping “plummeting freight rates” in mind when reviewing the company’s earnings. “I don’t think it’s customer demand sinking but supply of drivers rising,” he said.

Wednesday: Federal Reserve March meeting notes, Levi Strauss

Federal Reserve

• March 15 – 16 meeting minutes release at 2 p.m. ET

“Those notes come from a period before the collapse in transportation rates, and that’s something that can reduce inflation all on its own. … Be mindful that [the minutes are] old,” Cramer said.

Levi Strauss

• Q1 2022 earnings release; conference call at 5 p.m. ET
• Projected EPS: 42 cents
• Projected revenue: $1.55 billion

Cramer said he’s interested in finding out whether rising cost of cotton has affected Levi Strauss’ gross margins.

Thursday: Constellation Brands, Conagra Brands

Cramer said he liked the juxtaposition of the two brands: Constellation’s brands include names like Corona and Mi Campo while Conagra’s portfolio includes brands like Slim Jim and Earth Balance.

Constellation Brands

• Q4 2022 earnings release before the bell; conference call at 10:30 a.m. ET
• Projected EPS: $2.09
• Projected revenue: $2.02 billion

Conagra Brands

• Q3 2022 earnings release at 7:30 a.m. ET; conference call at 9:30 a.m. ET
• Projected EPS: 58 cents
• Projected revenue: $2.84 billion

Friday: Baker Hughes’ North American rig count

• Release at 1 p.m. ET weekly

“The oils are arguably the last remaining strong group besides the recession-proof utilities, and they love that they can make a ton of money holding down production,” Cramer said.