Business

February’s job report may result in a tsunami of gross sales.

CNBC’s Jim Cramer said he was encouraged by the trading activity he saw in technology and growth stocks as the market continued to grapple with fears that inflation would rise on Friday.

However, he cautioned that investors should be prepared for how the market might react to the February work report due to be released late next week.

“If we get any strength here at all, please be prepared for another tsunami of sales when interest rates rise and stocks fall,” said the host of Mad Money, predicting this will be a major interest rate move on the bond is market would shoot. “Without ugly numbers, growth stocks are in trouble.”

Cramer commented after the market closed lower for the second straight week as the bond sale turned into stocks.

The Dow Jones Industrial Average fell nearly 470 points on Friday, falling 1.5% to 30,932.37. The index also ended the week down 1.78%.

The S&P 500 fell 0.48% to 3,811.15, down 2.45% this week.

Although the day ended up 0.56%, the tech-heavy Nasdaq Composite suffered the most this week after falling nearly 5% to 13,192,345. Friday’s surge was due to a rebound in big tech stocks.

“I don’t know if the growth names can withstand the pain, but today’s meeting gave us a glimmer of hope that they can still make some profit amid inflation fears,” said Cramer. “If you don’t like the pain … you might want to take advantage of moments like this on the Nasdaq, take profits, and prepare for a Friday swoon and be ready to buy stocks like Costco.”

The US Treasury’s 10-year return, a key metric in consumer credit interest rates, fell nearly 1.4% on Friday, after surpassing 1.6% the previous day for the first time in about a year. The increase was due to the sale of bonds.

If rates fall, major industrials will lose momentum, as seen in the Dow’s fall, but cloud, semiconductor and cybersecurity stocks have been positive, Cramer said.

Bond investors who cut their holdings are betting that the Federal Reserve could change their minds and raise the policy rate from near zero when the economy recovers from the pandemic-triggered recession, he added.

“Inflation is a nightmare for people who own bonds. Who wants a piece of paper that pays 1.5% if inflation could break 2%? They lose every day,” Cramer said. “That’s why these people dumped bonds and their wholesale sales always shatter the stock market.”

Cramer announced his schedule for the coming week. The forecasts for earnings per share are based on FactSet estimates:

Monday: Zoom video, lemonade

Zoom video

  • Q4 2021 Results publication: After Market; Conference call: 5 p.m.
  • Projected EPS: 81 cents
  • Estimated sales: $ 910 billion

lemonade

  • Q4 release of results: according to the market; Conference call: 8 a.m.
  • Estimated losses per share: 64 cents
  • Estimated revenue: $ 19.2 billion

Tuesday: Destination, Nordstrom

target

  • Q4 results published: before the market; Conference call: 9 a.m.
  • Projected earnings per share: $ 2.54
  • Estimated Revenue: $ 27.4 billion

Nordstrom

  • Q4 release of results: according to the market; Conference call: 4:45 p.m.
  • Projected EPS: 14 cents
  • Estimated Revenue: $ 3.58 billion

Wednesday: Dollar Tree, Wendy’s, American Eagle Outfitters

Money tree

  • Q4 results published: before the market; Conference call: 9 a.m.
  • Projected earnings per share: $ 2.12
  • Estimated Revenue: $ 6.8 billion

Wendy’s

  • Q4 results published: before the market; Conference call: 8:30 a.m.
  • Projected EPS: 18 cents
  • Estimated Revenue: $ 477 million

American Eagle Outfitter

  • Fourth quarter results to be published: 4:15 pm; Conference call: 4:30 p.m.
  • Projected EPS: 36 cents
  • Estimated Revenue: $ 1.28 billion

Snowflake

  • Q4 release of results: according to the market; Conference call: 5 p.m.
  • Estimated losses per share: 16 cents
  • Estimated Revenue: $ 332 million

Thursday: Kroger, Costco

Kroger

  • Q4 results published: before the market; Conference call: 10 a.m.
  • Projected EPS: 69 cents
  • Estimated Revenue: $ 30.86 billion

Costco

  • Q2 2021 Results to be published: 4:15 p.m.; Conference call: 5 p.m.
  • Projected earnings per share: $ 2.44
  • Estimated Revenue: $ 43.72 billion

Disclosure: Cramer’s charitable foundation owns shares in Costco.

Disclaimer of liability

Questions for Cramer?
Call Cramer at 1-800-743-CNBC

Would you like to dive deep into Cramer’s world? Open it up!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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