Cramer’s week ahead: Expect more record market highs on another week of earnings

The stock market has more evidence to quell fears that a recession could be looming, CNBC’s Jim Cramer said Friday.

The major averages all surged about 1% during the session, the same day the October jobs report showed that companies added 128,000 new payrolls. That topped the 75,000 that economists had estimated.

The S&P 500 and Nasdaq Composite set record closes at 3,066.91 and 8,386.40, respectively, to end the trading week.

The U.S. consumer economy remains strong and the weaker manufacturing economy received a boost from the Federal Reserve when it issued its third interest rate cut this year, the “Mad Money” host said.

“That’s exactly what happened this week, which is why today’s rebound from yesterday’s depressed levels makes perfect sense,” he said.

“Next week is an important week, not as important as this week when it comes to earnings, but it’s certainly going to take us to where we have to go, which is more record highs if everything works out.”

Monday: Adobe, Under Armour, Uber

Adobe will hold an analyst meeting after the market closes. Cramer thinks the event will set the tone for the cloud sector.

Under Armour, now being led by new CEO Patrick Frisk, releases third-quarter earnings before the morning bell. Cramer said he is curious to find out why Frisk took over instead of founder Kevin Plank. Analysts expect to see 18 cents of earnings per share on $1.4 billion of revenue.

Uber‘s quarterly results will come after the market closes. Wall Street expects the ride-hailing company to bring in $3.6 billion in revenue and cut down its losses to 70 cents per share. Uber disappointed greatly in its June quarter when it reported losses of $4.72 per share when analyst consensus had estimated it to be $2.08. Cramer wants to see if Uber Freight and Uber Eats will provide some help.

Tuesday: Emerson Electric, Peloton

Emerson Electric will drop its earnings report before the market opens and host a conference call during the trading day. Wall Street estimates are $1.08 earnings per share and a little more than $5 billion of revenue, according to FactSet.

Peloton will also reveal its results for the first quarter of its 2020 fiscal year, the first since the workout equipment manufacturer came public in late September. The company is expected to lose 36 cents per share and produce $199 million in revenue. The stock is down almost 3%.

Cramer called the 2019 class of IPOs “one of the weakest and most miserable in recent memory” and said “I have to believe this company can blow away the numbers.”

“Peloton’s in desperate need of redemption. It could actually help the whole IPO cohort if it says something good,” he said.

Wednesday: CVS, Wendy’s, Qualcomm, Square, Dexcom

CVS Health reports earnings prior to the morning bell and is expected to generate $63 billion of revenue, more than 33% higher than the third quarter in 2018, and $1.77 in profit per share.

Wendy’s is also out with its third quarter report in the morning. Analyst consensus pegs the restaurant chain to earn 15 cents per share and produce $434 million in revenue.

Qualcomm is scheduled to release its fiscal fourth-quarter results after at the end of the trading day. Wall Street is looking for 71 cents profit per share and more than $4.7 billion in revenue.

Square‘s quarterly report will come out after the market closes and is expected to record $597 million in revenue and produce 20 cents of earnings per share, according to FactSet.

Thursday: Disney, Take-Two Interactive

Disney reports earnings after the closing bell. The entertainment conglomerate is expected to turn in 95 cents of profit per share on more than $19 billion in revenue, which would be 34% higher than the year-ago quarter. Disney Plus, the company’s new streaming service, is slated to launch on Tuesday.

Take-Two Interactive also reports at the end of the trading day. Analysts are expecting the video game producer to record $1.70 of profit per share on $926 million in revenue.

Friday: Magna

Magna, a global automotive supplier of mobility technology, releases earnings in the morning. Wall Street estimates are $1.77 earnings per share and nearly $12.3 billion in revenue. Cramer expects the company to give investors a better read on the slumping auto industry.

Disclosure: Cramer’s charitable trust owns shares of Walt Disney and CVS Health.

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