Bloodletting to Bullish?
Today, the Dow was down 53, the S&P 500 was off 1%, and the Nasdaq was down 32-points. Cramer reiterated two reasons for what is going wrong in the market: the earnings have to pass through a President indifferent to a person’s 401k and IRA, and the mandated slowdown by the Chinese government. This means that everything from Apple to Amazon.com , and from Bank of America to Caterpillar must go through the gauntlet.
But, Cramer thinks the banks and healthcare stocks have reached the point where President Obama can’t hurt them anymore. The financials may soon be ready to go higher because the politics of anti-banking may have hit its peak. As for healthcare, President Obama simply doesn’t have the votes in Congress to pass legislation, even though he didn’t back down on the issue in his State of the Union address.
China is a different story. Cramer doesn’t think the industrials that depend on China saw the slowdown coming or the severity of it. China is crushing not just infrastructure spending but even letters of credit.
But there may be enough stock sectors that can thread the needle between Obama and China that have potentially priced in the damage, so that there could be a bounce soon.
Here’s a list of the companys announcing numbers and what to look for:
On Monday, Humana reports. This HMO has the most to lose from Obama care. So watch the market's reaction to the quarter. ExxonMobil is reporting and given the importance of XOM foray into US natural gas, there may be some sort of resolution on this in Washington. And Plum Creek Timberwill report whether land is appreciating or depreciating depending upon land sales.
Tuesday is the industrial and aerospace check-up. Cramer is looking if Whirlpool , which is doing well in Brazil, will signal to us if housing is alive and well in this country or if Brazil will soon be as economically important as the US. Dow Chemicalwill indicate worldwide growth, and BE Aerospace will tell us if Boeing is being too bullish on the new aerospace cycle.
On Wednesday National Oilwell Varcowill tell us if this arms supplier for oil and gas drilling is for real. International Paper will indicate demand worldwide, and Polo Ralph Laurenwill help us figure out whether the high end consumer spending is still spending. Plus, after the bell a slew of mobile Internet tsunami names will report, including Cisco Systems .
Thursday is safety and dividend day with Clorox , Kellogg , Suburban Propane Partners , and Pitney Bowes . Cramer also wants to know more about the strength of consumer spending, so he’ll be listening when MasterCardreports.
Finally, on Friday Weyerhaeuser , another timber company that owns large tracks of land will report and should give us some insights into housing, especially shadow inventory versus new construction.
The bottom line: investors are still between a rock and a hard place, and while so far good earnings haven’t mattered, it's still important to listen to these companies that are reporting next week.
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