What Cramer's Watching This Week
“We’re in a new world—a world where stocks play second-fiddle to events playing out in capitals worldwide,” Cramer said Friday, adding investors should take into account the “unbelievable pressure the politicians are putting on our markets.”
With that in mind, Cramer laid out his “Game Plan” for the week of Monday, August 15.
MONDAY, AUG. 15
To start, Cramer wants to hear that Europe’s central banks devised a plan to tackle its banking crisis. Cramer is hoping for a coordinated plan, which involves the U.S. and China. There was no plan last weekend and it troubled stocks throughout the week, Cramer said.
The “Mad Money” host will also look for two companies to report quarterly earnings on Monday, namely Lowe’s and Sysco .
A home improvement retailer, Lowe’s has not been able to get the same kind of forward progress that Home Depot has, Cramer said. In turn, Cramer doesn’t expect much of Lowe’s conference call. He actually thinks it could be downbeat.
Cramer is also worried about restaurant supplier Sysco. The company could say it’s worried about low amounts of consumer spending, even though gas prices have come down.
TUESDAY, AUG. 16
Speaking of the consumer, three companies tied to the consumer economy will deliver earnings on Tuesday, including generic drug maker Perrigo , luxury retailer Saks and TJX Companies . Cramer thinks all three names will post positive results.
Technology giant Dell is also set to report earnings on Tuesday. Cramer doesn’t like tech right now being as summer is typically a slow time for the space, but he’s betting Dell will have some positive results. After all, the company is putting some distance between itself and Hewlett-Packard .
The German and French Finance Ministries will also meet on Tuesday. It’s likely their comments will move the markets, rendering earnings results meaningless.
Cramer will also watch for a few pieces of economic data on Tuesday. The first is housing starts, which Cramer argues need to slow in order to stop putting pressure on existing home sales. The second piece of data is industrial production.
“Remember—from now on we are in recession watch and this industrial production number could give us a clue about the actual earnings damage and that’s been wrought by government fiddling worldwide,” Cramer said.
WEDNESDAY, AUG 17
NetApp is scheduled to post its quarterly numbers on Wednesday. It services the data center, which is best growing area of tech right now. Cramer hopes NetApp will have positive things to say. Otherwise, he said there will be few places to hide in the tech space.
We’ll see how small businesses are faring when Staples releases its quarterly results, Cramer said. Its last few reports have been really downbeat and given Washington’s shenanigans of late, Cramer fears nothing has changed.
Cramer also plans to review the mortgage index numbers, which will come out on Wednesday. He’s curious if rates are so low, people are refinancing. After all, refinancing provides bountiful savings for the millions of people who own homes and pay their mortgage on time.
THURSDAY, AUG. 18
Foot Locker will provide a reading on the shoe bull market when it reports Thursday. The retailer has been doing well lately and Cramer likes its 3.5 percent yield. Although Deckers remains the best way to play the shoe bull market, Cramer said.
Cramer will also watch for Gap’s earnings. He called it a “wine company” because it does more whining than any other retailer he’s ever come across.
FRIDAY, AUG. 19
Yingli Green Energy should report its results on Friday. While many “Mad Money” viewers seem to like this Chinese solar name, Cramer said the stock “embodies pretty much everything I could dislike about any security.” After all, solar energy often relies on government subsidies, which are being axed by frugal lawmakers left-and-right. Also, Cramer doesn’t like the Chinese stock market because he thinks it’s tough to game. The only Chinese stock he’s recommending right now is Internet name Baidu .
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