Jim Cramer's week ahead: We need more downside before I'm ready to get more positive

Key Points
  • "I know it's been rough, but last week this market was really overbought still ... I think we need some more downside before I'm really ready to get more positive," CNBC's Jim Cramer says.
  • The "Mad Money" host names earnings from Thor Industries, PepsiCo, Costco and Constellation Brands, among others, as his top things to watch for next week.
  • He also expects a good jobs report on Friday for the month of September, "which may make it difficult for the Fed to give us another rate cut."
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Jim Cramer's week ahead: 'We need some more downside" before things get better

The stock market got hit with a double whammy on Friday coming from a glut of new public offerings and a threat from the White House to limit U.S. investments in China, CNBC's Jim Cramer said.

The "Mad Money" host said "busted deals" such as Peloton, SmileDirectClub, Lyft and Uber are happening too often and have contributed to a number of down days on Wall Street.

In the midst of an ongoing trade war between the world's largest economies, the public also learned during the day that Trump administration officials are looking at ways to deter U.S. companies from investing in Chinese companies, a move that Cramer supports.

"Turns out ... it's not as sweeping or as negative as the market seems to believe," he said. "The administration doesn't want Chinese listings that lack the same kind of transparency as American companies, and it would prefer investors not to buy the shares of companies with opaque financials."

The Dow Jones Industrial Average lost more than 70 points, or 0.26%, while the S&P 500 pulled back 0.53% and the Nasdaq Composite dropped 1.13%.

"I know it's been rough, but last week this market was really overbought still, and when you're overbought you tend to get hit with sell-offs … especially when we're being flooded with shoddy IPO merchandise," Cramer said. "I think we need some more downside before I'm really ready to get more positive."

Cramer also gave his game plan for next week:

Monday: Thor Industries

Thor Industries reports earnings before the market opens. Shares of the recreational vehicles manufacturer have struggled as of late, down nearly 70% from their January 2018 all-time highs on the back of a series of earnings misses. Cramer noted that labor and raw costs, on top of dim demand, have contributed to woes in the camping cohort.

"If there's ever going to be an upside surprise here, it's going to be this quarter, because interest rates are finally going down. For now, though, I think it's way too risky," he said. "Thor needs to deliver at least one quarter, please, of good numbers before you have my permission to circle back."

Tuesday: McCormick, Stitch Fix

McCormick presents quarterly numbers before the opening bell. Analysts are looking for a profit of $1.29 per share on $1.3 billion revenue in the Cramer-fave spice maker. The stock dropped more than 2% in Friday's session.

"If it keeps falling on Monday ... you're going to get a good opportunity to buy this thing," he said. "McCormick is one of the few companies in the supermarket that's got real growth."

Stitch Fix has an earnings call after the closing bell. Wall Street expects 4 cents earnings per share and $432 million of sales, which would represent nearly 37% year-over-year growth. Shares are down more than 42% since late June.

"Expensive valuation never seemed to matter to the stock until June," Cramer said. "That's what happens, though, when you go out of style on the Wall Street fashion show. Watch how this one behaves after the quarter."

Wednesday: Lennar, Bed Bath & Beyond

Lennar delivers a quarterly report in the morning. Housing has been a strong spot in the economy, and shares of the homebuilder have been steadily growing, closing Friday's session shy of 40% year to date.

"Housing's responding to lower interest rates," Cramer said, "so if this stock gets hit on the quarter, call me a buyer."

Bed Bath & Beyond's earnings report comes after the market closes. The company has been shaken up by activist investors looking to stabilize sales and cut costs at the home goods retailer. The stock is at $9.91, more than $2 higher than its August lows.

"Bed Bath finally looks like it's kind of [bottoming]," Cramer said. "Let's hear what they have to say before you try to pick at this one, though."

Thursday: PepsiCo, Constellation Brands, Costco

PepsiCo reports earnings in the morning. The stock is up more than $11 from early August.

"I think Pepsico is exactly what works in this dicey environment," Cramer said. "I'm looking for 5% organic growth."

Constellation Brands has a quarterly call before the bell.

"Constellation might help us understand its cannabis strategy ... not to mention, please, have something to say about spiked seltzer, which is the hottest part of the alcohol market," he said.

Costco delivers earnings after trading ends. The stock has fallen about $17 in three weeks.

"I expect one more leg down before the stock's safe to buy," the host said.

Friday: September jobs report

"Employment's been strong, but now everyone I know is acting like the good times stopped rolling," Cramer said. "I don't think that's the case. I expect another good number, which may make it difficult for the Fed to give us another rate cut."

WATCH: Cramer's game plan

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Jim Cramer's week ahead: 'We need some more downside" before things get better

Disclosure: Cramer's charitable trust owns shares of PepsiCo.

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