In the stock market, words are sometimes more important than deeds, Jim Cramer told his Mad Money viewers on Friday. This is how the Federal Reserve can curb inflation by just talking about rate hikes. Between the Fed and the seasonal weakness between now and the July 4th holidays, Cramer said we had a tough week ahead of us next week.
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Cramers Mad Money Recap: Amazon, AMD, FedEx
Cramer’s schedule for next week starts with more Fed-speaking. St. Louis Fed Chairman James Bullard will speak on Monday, followed by Fed Chairman Jay Powell on Tuesday. These dueling comments are likely to continue to put pressure on oil, industrials and cyclicals, with technology benefiting primarily from them. Cramer suggested buying Amazon, Nvidia, or Advanced Micro Devices for any weakness.
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Winnings continue on Wednesday with Winnebago and KB Home. Winnebago will get strong results, but nobody seems to care. If KB Home is strong, Cramer suggested buying Lennar.
On Thursday we’ll hear from Accenture, Nike, and FedEx. Cramer said FedEx may not be able to hold its momentum and Nike is dependent on growth in China. He was optimistic about Accenture.
Finally, on Friday, we close the week with Paychex, which could be a buy if hit before it reports. Carmax will also provide information on the red-hot used car market.
Cramer and the AAP team are reviewing everything from revenue to politics to the Federal Reserve. Find out what they are saying to their investment club members and join the fun with a free trial subscription to Action Alerts Plus.
The Fed
When it comes to the Fed, Wall Street has always feared its shadow. That’s why stocks have been sold the mere mention of rate hikes at least a year away. But while the impulse to react is strong when the sale starts, Cramer urged viewers to sit back, relax, and do nothing. That’s because the last week of June is historically awful for stocks and there will be even more Fed impact earlier in the week.
Video: Jim Cramer’s Market Breakdown: Cramer Expects No Changes From Fed (TheStreet)
Jim Cramer Market Breakdown: Cramer expects no changes from the Fed
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But that doesn’t mean there isn’t anything to buy. Cramer said he was still optimistic about technology and especially Amazon as it prepares for its annual shopping vacation, Prime Day. When the urge to buy is too great and the market is going down, Cramer has been blessed to buy some Amazon into that weakness so you will be ready for the post July 4th stock market rally.
On Real money, Cramer shares information about the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
The influence of ARC
Hyper-growth stocks are showing signs of life again, but Cramer cautioned viewers not to expect a return to the speculative mania of 2020. That’s because many of these stocks have been driven by an almost one-time cycle over the past year. handy by ARK Invest CEO Cathie Wood.
ARK Invest’s ETFs were insanely popular last year, explained Cramer. As investors poured money into the ARK’s funds, Wood bought more of their favorite stocks, which drove them up and, in turn, led investors to put even more money into their funds.
But when the economy began to re-open, Wood lost its firepower, and ARK’s Innovation ETF is now down 5% for the year, compared to the gains of the S&P 500 and Nasdaq. In fact, ARK recorded outflows in May, the first since 2019.
With Wood and ARK Invest no longer sustaining growth stocks, it becomes much more difficult for them to rise. That makes their recent wins encouraging, but Cramer said it was too early to say if they have staying power.
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