The highly anticipated public offerings that have flooded Wall Street in recent days hobbled the stock market this week, CNBC's Jim Cramer said, after the major averages completed another negative week of trading.
Multiple software companies — from Snowflake on Wednesday to Unity on Friday — made their debuts after shares priced above their original target ranges and gained even more value on open markets as investors sold holdings elsewhere to get in on the newcomers.
"All the great earnings in the world won't save this Humpty Dumpty market if we keep getting slammed by people selling good [stocks] to buy the smoking-hot, 100-times sales IPOs," the "Mad Money" host said.
"I think we'll keep churning lower until the deals slow down or the big institutional money managers finally lose interest and go back to stocks that they shouldn't have sold to begin with."
The major averages all dipped about 1% in Friday's session. The session completed a week where the Dow Jones index slipped 0.03% to 27,657.42, the S&P 500 fell 0.64% to 3,319.47 and the Nasdaq Composite reversed 0.56% to 10,793.28.
The decline is a result in part of the supply of new stock overwhelming demand on the market, Cramer said.
"To put it another way, this market's like an ailing retailer that's stuck with way too much inventory. There's no place to put it now that all this new merchandise is coming in, so prices get cut and they get cut and they get cut again until they're low enough to entice the buyers back," he said. "We're not there yet."
What follows is a list of earnings and economic reports that Cramer has circled on his calendar next week and his outlook for the week to come. All projections are based on consensus estimates in Factset:
"If Oracle and Walmart can reach a deal with the White House this weekend — seems unlikely, right now — then that would give this market a major boost," Cramer said. "And we need a boost with all the carnage caused by the IPO deluge."
"The sell-off this week has given you a terrific buying opportunity," Cramer said. "Nike's crushing it all over the globe … with a terrific direct-to-consumer business that has big margins."
"The average car on the road just keeps getting older, which means they need more maintenance. I recommend buying some before and after Autozone [reports]," he said. "This stock tends to have a quick dip down after it reports" until the conference call.
"I think the numbers are going to be fabulous, like we've seen from the other homebuilders," he said. "When Lennar reported, the numbers were spectacular but it's stock still got dinged at first before roaring the next day after analysts raised their estimates. … I think you're probably going to see the same pattern with KB Home's."
"I think you could do a lot worse than buying Campbell [Soup] or General Mills, which got a 3.4% yield, especially since it's got faster growth than most consumer packaged goods plays," Cramer said.
"Accenture helps big companies digitize; we know that business is on fire," Cramer said.
"Jabil's a contract manufacturer that helps make devices for all sorts of electronics companies, including Apple. I wish I were in that business," he said.
"CarMax sells used cars and there's a developing used-car shortage," the host said.
The parent of Olive Garden "has caught upgrade after upgrade," Cramer said, "because mom-and-pop competitors keep dropping like flies. Darden can survive the age of social distancing among tables. Most of its rivals can't."
"They've consistently delivered amazing numbers, but they're usually baked into the stock price, so it often goes down after the quarter, even as it tends to outperform pretty much everyone else in its class," he said. "If you don't own it already, I suggest waiting before you buy more."
August durable goods orders
"I think you're going to begin to see in aggregate what the FedExes and the Union Pacifics have been saying, and so many others in transports, too: there is a boom in some cargos that are made in the United States," Cramer said.
Disclosure: Cramer's charitable trust owns shares of Apple.