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Jim Cramer warned his new week of tough results Crazy money Friday viewers. Cramer warned that if a company had links with the Federal Reserve or with China, let them know, because this market sometimes backs up even the best income.
Cramer's game plan starts on Monday with wins from Kimberly-Clark (KMB) and Hasbro (HAS). Cramer said Kimberly-Clark may be able to extend the gains made by Procter & Gamble (PG), but Hasbro is not expected to perform well this quarter.
Tuesday, it's the profits of 3M (MMM), Verizon (VZ), United Technologies (UTX), Caterpillar (CAT) and McDonalds (MCD). Cramer was optimistic about Verizon and McDonalds, but noted that the others were all facing Chinese risks.
On Wednesday, the profits of Boeing (BA), AT & T (T), Microsoft (MSFT) and Visa (V) were all optimistic. In the camp of the bears, Ford (F) and Advanced Micro Devices (AMD), the maker of semiconductors with dizzying expectations.
For Thursday, earnings continue and Cramer will watch Comcast (CMCSA) and Merck (MRK), two of his favorites, along with Amazon (AMZN) and Alphabet (GOOGL), which have become too difficult to call. Intel (INTC) also reports and Cramer said that one is do not hard to call: it will probably be bad.
Finally, Colgate-Palmolive (CL) completes the week, but unlike Kimberly-Clark, Cramer expects Colgate to experience losses in market share.
Cramer and the AAP team are exploring the mixed results of Schlumberger's third quarter (SLB). Find out what they say to their investment club members and join the conversation with a free trial subscription at Action Alerts PLUS.
A message for the Fed
In his "No-Huddle Offense" segment, Cramer said the Federal Reserve simply did not understand digitization. Every year, Cramer visits Silicon Valley and every year he leaves with two thoughts. First, he is extremely proud of the innovation produced by the Valley, but he is also worried about all the people who will be fired because of it.
Although recent labor force reports reveal labor shortages in many blue-collar jobs, they do not show the slow and subtle shifts in many white-collar jobs through automation and to technology. Cramer said these workers are not easily assigned to the jobs we need, but over time they will be retrained and put to work elsewhere in our economy.
That's why Cramer said that Fed Chairman Jay Powell just needed to do his homework and see what was really happening in our economy. Technology helps to control inflation more than ever before, and it's something that does not show up in work reports.
As for the real money, Cramer explains how digitization helps to control inflation. Get more of his ideas with a free trial subscription to real money.
Decision of the executive: PayPal
For its "Executive Decision" segment, Cramer has been meeting with John Rainey, PayPal's chief financial officer (PYPL), the online payment processor with shares up 9.4% the day after a other stellar release of the results.
Rainey said it was a record quarter in terms of growth in the number of users, with over 30 million new net active customers joining their platform. In total, PayPal and Venmo have 250 million customers worldwide.
A little over a year ago, investors wondered how PayPal would behave after the split of eBay (EBAY). Rainey said their eBay activity had grown 28%, more than eight times faster than eBay-related activity. PayPal was also able to announce two major partnerships this quarter with Walmart (WMT) and American Express (AXP).
When told about Venmo, Rainey said that the social payments platform was at an inflection point, with one in four customers now using paid portions of the service, including purchases, credit cards, and more. debit and instant withdrawals.
Cramer does his homework
In his segment "Homework", Cramer followed up on some actions that had left him perplexed in previous shows. He said that Smartsheet (SMAR), the cloud computing software provider, looked great, but that Wall Street has become hostile to growth stocks, with rising inflation being the enemy of growth. Cramer said he'd prefer to use Atlassian (TEAM), which has proven itself.
Cramer said the Funko licensed coin manufacturer (FNKO) was a wilder shopkeeper and was now at 40% of its peaks, but he would still be a buyer for speculation because the company has a lot to gain .
Scare United Rentals
When the Fed becomes too aggressive on interest rates, some stocks become an indirect indicator of the business cycle, warned Cramer. This is certainly the case of United Rentals (URI), which plunged 15% Friday and down more than 28% for the month of October, as investors see a "slowdown" emerge.
What did the market scare? Cramer said that there was nothing wrong with the revenue from United Rentals, but the bears saw signs of an imminent slowdown. United Rentals has seen a drop in rental rates and has chosen to suspend its buyback program to fund the BlueLine Rentals acquisition. Investors now fear that this acquisition is untimely, with United Rentals buying at the top of the economic cycle.
While Cramer said he still believed in society, it no longer mattered because Wall Street saw only bad things on the horizon.
Lightning Tower
In the Lightning Round, Cramer was optimistic about GoPro (GPRO) and Marriott International (MAR).
Cramer was bearish on Eli Lilly (LLY), HealthEquity (HQY) and General Mills (GIS).
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