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Jobs report will make or destroy July’s rally


CNBC’s Jim Cramer said Monday that the most important data this week is the Bureau of Labor Statistics’ release of July’s nonfarm payrolls report Friday morning.

“If it shows some job growth with no wage inflation, then July’s fabulous rally may continue. But if it shows booming hiring with unusually large wage increases, then some of that rally, if not a large part, will be repealed, “ said the “Mad Money” host.

Job growth has been strong this year, leading economists to say the United States is not in recession, even with two consecutive quarters of negative GDP.

Another strong jobs report could mean the Federal Reserve, which added a three-quarters of a percentage point interest rate hike last week, will have to take more aggressive action to slow the economy and the inflation.

Cramer also previewed this week’s earning list. All earnings and income estimates are courtesy of FactSet.

Tuesday: Uber, AMD, Starbucks, Airbnb, JetBlue, PayPal

Uber

  • Publication of the results for the second quarter of 2022 at a time to be determined; conference call at 8 a.m. ET
  • Expected loss: loss of 27 cents per share
  • Projected revenue: $7.36 billion

Cramer said he thinks Uber will always struggle to make money unless it gets “real” self-driving vehicles.

AMD

  • Q2 2022 results release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $1.03
  • Projected revenue: $6.53 billion

AMD will likely announce a strong performance, Cramer predicted.

Starbucks

  • Third Quarter 2022 Earnings Release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 77 cents
  • Projected revenue: $8.15 billion

Cramer said he wanted to bet on Starbucks CEO Howard Schultz, not him.

Airbnb

  • Publication of Q2 2022 results between 4 p.m. and 4:05 p.m. ET; conference call at 4:30 p.m. ET
  • Projected EPS: 45 cents
  • Projected revenue: $2.11 billion

The company will likely report doing well, Cramer said, adding that he thinks Airbnb shares won’t rise unless it turns its cash flow into real earnings.

JetBlue

  • Publication of Q2 2022 results at 7 a.m. ET; conference call at 10 a.m. ET
  • Projected loss per share: 11 cents
  • Projected revenue: $2.45 billion

Cramer said he believed the Justice Department would block JetBlue’s deal to acquire Spirit Airlines.

PayPal

  • Q2 2022 results release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: 87 cents
  • Projected revenue: $6.78 billion

“If PayPal misses again, it’s Elliott’s ball game,” Cramer said, referring to activist investor Elliott Management’s recently acquired stake in the payments platform.

Wednesday: SVC

  • Q2 2022 earnings release at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Projected EPS: $2.18
  • Projected revenue: $76.41 billion

Cramer said he expects the retail giant to report big numbers.

Thursday: Eli Lilly, Warner Bros Discovery, DoorDash

Eli Lily

  • Q2 2022 earnings release at 6:25 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $1.70
  • Projected revenue: $6.85 billion

Cramer said he believes the success of Eli Lilly’s new weight-loss drug will help the company post a strong quarter.

Discovery of Warner Bros.

  • Publication of second quarter 2022 results after the bell; conference call at 4:30 p.m. ET
  • Projected EPS: 12 cents
  • Projected revenue: $11.85 billion

Cramer said he thinks the company will try to muddle through by getting rid of its huge debt load totaling around $55 billion.

DoorDash

  • Q2 2022 results release at 4:05 p.m. ET; conference call at 6 p.m. ET
  • Projected loss per share: 21 cents
  • Projected revenue: $1.52 billion

Cramer said he doesn’t know if DoorDash will be able to revive its stock price.

Disclosure: Cramer’s Charitable Trust owns shares of AMD and Eli Lilly.

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