Stock Market’s Next Move Hinges on the state of Coronavirus Stimulus talks; Jim Cramer

Stock Market Investing

U.S. economy continues to regain from the coronavirus slowdown earlier this year. An analyst and host at “Mad Money” Cramer said,

“If the Democrats and Republicans in Congress can make a stimulus deal over the weekend, this market can indeed keep running,”

“Without some progress in Washington, though, next week could be a lot more difficult because we’re entering the most horrifying phase of the pandemic.”

There is no same word on the coronavirus spending bill, among the point of view of Republicans and Democrats. They are still remain divided into key items in that COVID-19 crisis.

Cramer said,

“If the supercharged stimulus talks don’t lead to some kind of agreement over the weekend, I fear that we are going to get hammered when we come in on Monday.”

These comments come after the major averages climbed higher, in spite of disappointing jobs report that came out in the morning and all major indexes enjoyed a positive week of trading, gaining between roughly 1% and 2% over the past five trading days to new highs.

Dow Jones Industrial Average rose 248.74 points, or 0.8%, to 30,218.26 on Friday. The S&P 500 moved up 0.9% to 3,699.12. Nasdaq Composite surged 0.7% to 12,464.23.

Almost 245,000 jobs were added in the month of November to the U.S. economy, although the count was far below the 440,000 number that was estimated in a Dow Jones consensus. The unemployment rate slipped to 6.7% from 6.9% as the U.S. economy continues to regain from the coronavirus slowdown earlier this year.

There is a brief overview of Cramer’s game plan for the week ahead for stock market investing. All the below earnings projections are based on FactSet estimates:

Monday Earnings: Coupa Software, Toll Brothers

Coupa Software Inc (NASDAQ: COUP) is set to announce Q3 fiscal 2021 earnings release aftermarket; and the conference call is scheduled at 4:30 p.m. According to FactSet estimates the  Projected EPS is 16 cents and the projected revenue: $160 million. On Friday in after-hours trade COUP stock fell 0.11% to $318.49.

“They bill themselves as the Salesforce.com of expense management,” he said. “I like Coupa a lot, so let’s listen.”

Toll Brothers Inc (NYSE: TOL) will release its Q4 fiscal 2020 earnings on Tuesday aftermarket; and the conference call is scheduled for at Tuesday 11 a.m. According to FactSet, the projected EPS for Toll Brothers is $1.23 and the projected revenue is $2.08 billion. Toll Brothers Inc (NYSE: TOL) shares are up 0.17% to $47.98 in Afterhours on Friday 4 December 2020.

Analyst Cramer said,

“They have metro properties, but they’re also known for exactly the kind of suburban homes that affluent people are flocking to right now.”

Tuesday Major News: Salesforce investor day

salesforce.com, inc. (NYSE: CRM) is scheduled its Investor Day on Tuesday at 1:30 p.m.salesforce.com, inc. (NYSE: CRM) shares slumped 0.15% to $225.51 in after-hours on Friday.
Cramer said,

“I hope after the meeting people will realize that Slack isn’t just some also-ran loser that Salesforce stumbled over,”  “The company just reported an amazingly strong quarter, even better than the results from Salesforce.”

Wednesday:  Starbucks, Lowe’s investor days; Campbell Soup, Adobe earnings

Starbucks Corporation (NASDAQ: SBUX) scheduled its Investor Day on Wednesday at 3 p.m. Shares of Starbucks Corporation (NASDAQ: SBUX) rose 0.098% to $102.38 in after-hours on Friday.

Cramer said,

Starbucks’ “stock was running all day today in anticipation of this meeting, but I don’t think it’s a reason to take profits. They’ve got a huge Chinese business and that Chinese business is already back to normal,”

“When we get the vaccine here, the lagging U.S. business will catch fire, too.”

Lowe`s Companies Inc (NYSE: LOW) scheduled its Investor Meeting at 8 a.m. on Wednesday.
Cramer said,

“I believe in [CEO Marvin] Ellison’s vision and once he finishes executing it, Lowe’s will once again rival Home Depot in profitability and growth,”

“I think this is going to be a very positive meeting.”

Campbell Soup Company (NYSE: CPB) set to release its Q1 fiscal 2021 earnings release on Wednesday: before market open and conference call at 8:30 a.m. According to FactSet, the projected EPS is 91 cents and the projected revenue is $2.32 billion. Campbell Soup Company (NYSE: CPB) shares up 0.29% to $48.64

“The last time they had a great quarter, but they gave guidance that was I think misinterpreted as being tepid. I bet you that they won’t let that happen again so therefore I think you should buy some Campbell’s going into the quarter,” the host said. “I recommend buying it before earnings.”

Adobe Inc (NASDAQ: ADBE) scheduled to post the Q4 fiscal 2020 earnings release aftermarket; and the conference call on Thursday at 11 a.m. The projected EPS is $2.67, according to FactSet, and the projected revenue is $3.37 billion.

“This company’s tied up in digitization and I’m expecting terrific sets of numbers,” he said. “It’s another buy.”

Thursday:  Costco, Broadcom earnings; Disney investor day;

Costco Wholesale Corporation (NASDAQ: COST) will post Q1 fiscal 2021 earnings release at 4:15 p.m. and conference call: 5 p.m. According to FactSet Costco Wholesale Corporation (NASDAQ: COST) Projected EPS: $2.05 and projected revenue: $46.33 million.

“People didn’t like the last month’s numbers from Costco. I say, ‘will you give me a break?’ They just gave you a special dividend,” the host said. “It’s the most consistent retailer in the world. Shut up and own it. You actually should hope it comes down so you can buy some more.”

Broadcom Inc (NASDAQ: AVGO) will release Q4 fiscal 2020 earnings after market on Thursday and conference call at 5 p.m. According to FactSet, the projected EPS is $6.24, and the projected revenue is $6.43 billion. Broadcom Inc (NASDAQ: AVGO) shares rose 0.49% to $413.69 in after-hours on Friday.

“If Broadcom delivers, there will be excellent, excellent pin action throughout the [chipmakers] group,” he said.

Walt Disney Co (NYSE: DIS) is scheduled its Investor Day on Thursday at 4:30 p.m.

Cramer said, “We’re going to hear about rising profitability of Disney Plus, that’s my suspicion,”

“Remember the last time Disney held a big analyst meeting, the stock gapped up huge. This time it might not happen because Covid’s out of control, but my charitable trust still owns this one and we’re betting that we’re going to like what we hear.”
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