Mad Money

Cramer's game plan: Next week's dips could provide a golden opportunity

Next week's dips could equal opportunity
VIDEO1:3301:33
Next week's dips could equal opportunity

After a strong first quarter of 2017 that the bears consistently thought would tank, Jim Cramer said to get used to hearing arguments about the market derailing because of President Donald Trump, a possible trade war, overly expensive stocks, or the Federal Reserve.

"They'll probably be with us all year," the "Mad Money" host said. "Just remember what this market was able to accomplish despite these very powerful arguments, and perhaps keep that in mind if we get any dips going forward as the profit-taking like we saw [Friday] sets in during the beginning of the second quarter."

With that in mind, here are the stocks and events on Cramer's radar next week:

Monday: Federal Reserve speakers

New York Fed President Bill Dudley and Richmond Fed President Jeffrey Lacker will speak. Cramer's watching for commentary on possible interest rate hikes ahead of earnings season, during which the banks report first.

"The bulls need this key leadership group to come back to life, and the only way the banks do that is if the Fed decided to raise rates at least twice more this year so the financials can make more risk-free money off your deposits," Cramer said.

Tuesday: McCormick

Cramer is watching an analyst meeting at the spice maker to see how the market reacts. If the company's story is intact and the stock rallies, investors may be getting bearish on the economy.

If the story is good but the stock does nothing or falls, that will strangely be good news for the market, especially for the industrials and the banks.

"Why? Because it shows that investors still buy into the economic expansion theory and, for that matter, the Trump stocks, which led this market for so long before handing the baton off to the hyper and senior growth stocks when it looked like the president had lost his mojo," Cramer said.

Wednesday: Walgreens, Monsanto, Bed Bath & Beyond

Walgreens: The United States' second-biggest pharmacy chain will report earnings. The stock has been under pressure due to Walgreens' push to buy Rite Aid being stalled by U.S. antitrust officials.

"At this point, it's time for Walgreens to fish or cut bait; that's why I'm so glad the company reportedly just gave the Federal Trade Commission a three-month deadline after which it's going to just walk away," Cramer said. "One way or another, Walgreens is getting out of this limbo real soon."

Monsanto: This agricultural biotech player has also been embroiled in takeover tension with German drugmaker Bayer. European authorities have left investors guessing about whether the deal will go through.

Cramer is looking to Monsanto's Wednesday earnings report for clues on the deal, and what needs to happen to streamline it.

Bed Bath & Beyond: The retailer will also report earnings, and Cramer is bracing himself for another disappointment, though he admitted that anything positive could boost the stock.

Thursday: CarMax, Constellation Brands

CarMax: The largest used car retailer in the country will report earnings, though the stock has been struggling, down 8 percent in 2017.

"I want them to give us a read on both the new and used auto market, as well as giving us some commentary on the endless hand-wringing about car loan losses," Cramer said.

Constellation Brands: The wine, beer, and spirits company could get hurt by a border tax on imports, which House Speaker Paul Ryan wants in any version of White House tax reform, because it brings Corona and Modelo beers into the United States from Mexico.

But Cramer is wary of Ryan, who was unable to push through the GOP's Obamacare replacement plan.

"That makes me more inclined to buy Constellation, which I bet will continue hitting it out of the park," Cramer said. "But if you don't already own it, please wait, as it's had a bit of a relief rally ever since it became clear the House of Representatives has no real leadership."

Friday: Nonfarm payrolls

The week tops off with its most important news, the nonfarm payroll report for March. Cramer expects a strong report, but noted that opinions are mixed on the state of the economy.

"Many retailers have been painting a weaker picture and we know that consumer spending's just been OK. On the other hand, we speak to a lot of companies here, many of which are hiring and expecting big things for 2017," the "Mad Money" host said.

So as the bulls try and hang on to the strength seen this quarter, Cramer believes Wall Street players could realize that the market has run too hot and try to pull it back.

"If that's the case, I say let them knock the market down so we can use the weakness to get some major bargains in our favorite stocks," he said.

Watch the full segment here:

Cramer's game plan: Next week's dips could provide a golden opportunity
VIDEO10:2510:25
Cramer's game plan: Next week's dips could provide a golden opportunity

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