CNBC's Jim Cramer said Friday that Wall Street is having a "curb-your-enthusiasm moment."
"'Sell in May and go away' is suboptimal advice, people, but this May, it just so happens that the market's run too much versus the fundamentals," the "Mad Money" host said.
After completing its best month of gains in about three decades, the stock market sold off on the first trading day of May. The major averages all slumped about 3% during the session as investors reacted in part to President Donald Trump's threat to impose new tariffs on China in response to that country's handling of the coronavirus outbreak. The virus was first discovered in the Chinese city of Wuhan before it became a global pandemic.
The new duties would rekindle a multiyear trade dispute between the world's two largest economies. Trump first waged a trade war with China when the U.S. economy was at its zenith, but now that the country is in a recessionary environment it is not ideal, Cramer said.
"I don't love the timing here, but if there's one thing we've learned, it's that you need to take the president seriously when he threatens to take action against China," he said, adding, "that's bad news for the stock market."
Cramer warned, however, that the market is trading above its intrinsic value. He said stocks could cool down more before it's time to build more positions.
"Even after today's decline, we're still overbought. I really do believe it's worth waiting for the market to go lower to do any buying unless we got some incredible vaccine news over the weekend, and I don't think we're going to get that," Cramer said.
"The market got ahead of itself," he added, "so now we're having a curb-your-enthusiasm moment, so please be careful out there."
Cramer went on to present the Wall Street activity he has circled on his calendar for next week. All quarterly projections are based on Factset estimates:
Tyson Foods reports second-quarter earnings for the 2020 fiscal year before the market opens.
"We own Tyson for the charitable trust, and I am furious at myself for not giving it the boot at higher levels," Cramer said.
Skyworks Solutions reports second-quarter results for fiscal 2020 after the market closes.
"This chipmaker's one of the few pure plays on the coming of 5G wireless," he said. "Every time the stock gets slammed, like it was today, I think it's a buying opportunity."
Regeneron reports first-quarter earnings prior to the morning bell.
"Regeneron's working on a monoclonal antibody drug — we're going to learn more about that when Regeneron reports on Tuesday," Cramer said.
Disney reports earnings for the fiscal 2020 second quarter after the closing bell.
"I think Disney's meeting the challenge," he said.
"Disney is an iconic brand, so I'd say if you own it, I'd hold it. If you want to buy it, I'd wait until after the quarter."
Occidental Petroleum reports results for the first quarter after the market closes. Executives will host a conference call Wednesday morning.
"I think you've got to take advantage of the fact that Warren Buffett's got his annual meeting [this weekend]. He might say something good about it," Cramer said. "Monday may be your best chance to get out of what I think was a once great oil company that paid way too much for a company called Anadarko."
CVS reports first-quarter performances in the morning.
"I think this company has the best feel for the health of America thanks to their acquisition of Aetna. It's also a higher-yielding stock that's down 20% for the year," Cramer said. "Might be worth buying ahead of the quarter if you can get it in the mid-50s."
General Motors reports results for the first quarter before the market opens for trading.
"Right now, autos are the weakest part of the economy aside from travel and leisure," he said. "Don't do it. This is not the time for auto exposure."
Waste Management reports first-quarter numbers prior to the opening bell.
Cramer likes Waste Management but said the garbage company "does need construction to make its numbers, [so I'm] a little wary."
Shopify reports first-quarter results before the market opens in the morning.
"Given what we know about layoffs, quarantines and shopping, I'm betting Shopify has an incredible quarter," he said. "The stock has run up dramatically, [but] I think it's worth the risk."
Moderna reports first-quarter earnings before the market opens.
"We all want to know how Moderna's coronavirus vaccine is coming along. Hopefully they can give us a read-through when they report on Thursday," Cramer said. "So far they've been pretty tight-lipped about phase one."
Bristol-Myers Squibb reports results for the first quarter before the market opens.
"I'd buy some both before and some after," he said.
Ventas reports first-quarter 2020 results prior to the opening of trading.
"Ventas yields 10%," which feels "like a red flag to me," Cramer said. "Let's see what CEO Deb Cafaro has to say about whether the payout's sustainable."
Disclosure: Cramer's charitable trust owns shares of Disney, CVS Health, Bristol-Myers Squibb and Tyson Foods.