Looking forward to the coming week, Cramer wondered which President Obama would show up to CNBC’s Town Hall on Monday. Would it be the old business-bashing, “now is not the time for profits” Obama? Or the new, much-loved-by the-market Obama, who endorses tax breaks, write-offs and cuts for America’s businesses and its middle class?
The answer to those questions, “I think,” Cramer said, “is going to color everything” next week.
So, too, could the Federal Reserve meeting on Tuesday. The central bank must show some sign that it understands August was a soft patch in an otherwise improving economy. One with better retail sales and a stronger employment market, which needs to be confirmed in Thursday’s jobless claims number.
Also on Tuesday, housing starts. Expect the usual glum mumblings about how the lower-than-expected numbers are a bad sign for the economy. However, Cramer sees few newly built homes as a positive. It’s just basic supply and demand. The fewer the houses, the better the chance that prices have to rebound. Still, investors should “protect themselves from this alleged news report,” he said.
In terms of earnings, Cramer will be watching Adobe on Tuesday to see how much damage has been done by Apple’s campaign against the former’s popular Flash program. He’ll look to Darden the same day for proof the consumer is spending. He thinks Bed Bath & Beyond on Wednesday should outdo the company’s own expectations thanks to back-to-school sales. And he speculated that Jefferies could be the one stock to buy ahead of its Wednesday report, as the company was a major beneficiary of the new financial-reform bill.
Other reports of note include Nike , a participant in the shoe bull market, and KB Homes , which will most likely be shunned by the Street regardless of the numbers.
“You have been forewarned,” Cramer said.
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