Red Hat will also announce earnings on Wednesday. Typically, Red Hat’s stock sells off on expectations that the underlying company won’t meet Wall Street’s earnings expectations. If the company does meet expectations, though, the stock tends to rise sharply. In turn, Cramer recommends investors buy deep-in-the-money call optionsinto weakness ahead of the quarter, but then sell them after the company reports.
Auto dealership operator CarMaxwill post its earnings results on Thursday. In Cramer’s opinion, car buyers have been driving the U.S. economy lately. After all, building and selling cars involves a lot of people and that means jobs. He’s interested to see what executives have to say about the state of the industry.
After Thursday’s closing bell, Cramer will look for earnings from Oracle. The word on Wall Street is that this tech company is doing well, despite having exposure to Europe, he said. Still, Cramer doesn’t like to buy tech stocks in the summer months because it’s typically the sector’s weakest season.
Finally, Cramer will monitor Darden Restaurant’s earnings on Friday. Although the restaurant chain operator has benefited from lower gas prices and tempered food inflation, Cramer worries its stock has run up too much lately. In turn, he thinks expectations are just too high for the company.
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