Next Week’s Most Important Numbers
Investors will get the chance to put Cramer’s seven bull markets—gold, aerospace, climate controls, trucks, agriculture, chemicals and security—to work for them next week. A number of related company’s are reporting, and he thinks they should be bought on any weakness. Of course, always do the homework before making a move, but be ready to pounce if the opportunity presents itself.
Here are the numbers to watch:
BE Aerospace and Hexcel on Monday will offer a peek inside the aerospace sector. If the bullish statements coming from Boeing and Precision Castparts are any indication, we can expect more good news from BEAV and HXL. The former makes cabin interiors—seats, tray tables, oxygen-delivery systems—while Hexcel produces the light-but-heavy-duty composites used to make airplanes. More than anything, Cramer will be watching for orders. Are they strong or weak? “That’s the important metric,” he said, “not necessarily earnings.”
Tuesday brings a diverse group of companies reporting, including Johnson Controls , Cummins and DuPont . We need to know if JCI, which is a play on climate control, is worried about Europe. From CMI, we want the scoop of China. Keep an eye on DD, too, as it’s a trade on both the agriculture and chemicals markets.
Look to Radware , a small information-technology security firm, on Wednesday for signs of an impending takeover. The group is “en fuego,” Cramer said, so it’s possible a bigger company is looking for potential acquisitions. Also, Cramer fave gold miner Agnico-Eagle Mines delivers its numbers the same day. The most important metric here? Finding costs.
Thursday is all about chemicals, with Dow taking the stage. Cramer’s expecting the company to announce next week’s “biggest boost” of earnings guidance, he said, “so you should be hoping that the stock gets brought down by the dollar, copper and oil … [that] control trading every day.”
And lastly, there’s WABCO , maker of brakes for trucks, and Rockwell Collins , producer of aviation electronics such as navigation systems, on Friday. Again, research these names so you can buy on any weakness, Cramer said, “If you should be lucky enough to get it.”
In addition to his bull markets, Cramer highlighted four companies that should set the tone for the day they report. Watch F5 Networks for cloud computing on Tuesday, Procter & Gamble for soft goods on Wednesday, 3M for everything from consumables to computer screens to health care on Thursday and Merck for pharma on Friday. 3M also controls a big Asian presence, so its numbers could affect China-related stocks as well.
Two other factors that investors should prepare for are the macroeconomic picture and the coming midterm elections. If the dollar gets strong while commodities are weak, it could cause a sell-off, Cramer said. But don’t let that invalidate the homework you did. Instead, recognize that larger forces are at work for the time being. Also, if there’s talk of a congressional sweep by Republicans, share prices will push higher. Though if the Democrats maintain control, they will most likely drop.
“The confluence of politics and macro concerns will sow tremendous confusion,” Cramer said, but at least thanks to him it won’t blindside you.
The last two stats to watch next week are existing-home sales on Monday and new-home sales Wednesday. The bears love to jump on these numbers, using them to paint an extremely negative picture of the sector.
“We will be ready for the permanent pessimists,” Cramer said, “and we will ambush them if the numbers continue on their new better-than-expected trajectory, as they have for the last three months.”
When this story published, Cramer’s charitable trust owned Boeing, Cummins, Johnson Controls and Procter & Gamble.
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