A ‘bad news is good news’ market

CNBC’s Jim Cramer said Thursday he wouldn’t be surprised if the March jobs report was soft.

“Yesterday I suggested that the tech countertrend rally could continue for a few more days before it ebbs away,” said the host of “Mad Money”. “So far that forecast holds, but without a cool jobs figure tomorrow, I expect reopening stocks – think banks and industrialists – to come back into vogue on the Wall Street parade. “

While the market will be closed in keeping with Good Friday, the Labor Department is expected to release March hiring data.

Cramer’s comments come after a record day for the S&P 500, which broke through the 4000 level for the first time during the trading day.

Inventories managed to rise after the Labor Department issued a disappointing weekly number of morning unemployment claims. The ministry reported that 719,000 workers first filed for unemployment benefits last week, far more than economists had expected.

“Welcome back to Bizarro Wall Street, where bad news is good news, at least when it comes to the economy,” said the host of “Mad Money”.

Investors who want to see stock prices climb higher will want to see strong last quarter earnings reports and more non-inflationary news that will discourage the Federal Reserve from raising interest rates, Cramer said.

Cramer has given his game plan for the coming week. The earnings per share projections are based on FactSet estimates:

Paychex

• Publication of Q3 2021 results: before market; conference call: 9:30 a.m.
• Projected EPS: 92 cents
• Projected revenue: $ 1.11 billion

“I expect it to trade no matter what the company has to say. It has become a post-profit model,” Cramer said. “There are a bunch of negative analysts who got it wrong from the start. They will likely stay wrong, giving you a chance to buy Paychex when weak, even if it is reporting a good quarter.”

Constellation marks

• Publication of Q4 2021 results: before market; conference call: 11:30 a.m.
• Projected EPS: $ 1.55
• Projected revenue: $ 1.86 billion

“Constellation was struck by a negative research article the other day that suggested the beer and liquor company, which is a fantastic producer, could offer a light quarterback thanks to weakness in Texas,” Cramer said. . “The devastation caused by Super Storm Uri… could actually hurt their income. Texas is a big market for them.

Conagra brands

• Publication of Q3 2021 results: 7:30 a.m. conference call: 9:30 a.m.
• Projected EPS: 58 cents
• Projected revenue: $ 2.72 billion

“I’m concerned, as with all other food companies, that Conagra may temper its forecast due to concerns about the grand reopening, but that has been one of the strengths of a fairly anemic group.”

Levi Strauss

• Publication of first quarter 2021 results: after market close; conference call: 5 p.m.
• Projected EPS: 24 cents
• Projected revenue: $ 1.25 billion

“I just wish the Levi Strauss stock didn’t run as much in the quarter. We know PVH made huge strides in its bottom line and then the stock was destroyed after quite a few so why don’t let’s see- we don’t know how Levi’s behaves in revenue. “