CNBC’s Jim Cramer on Friday guided investors through next week’s market action, specifically the labor report and earnings results from alcohol maker Constellation Brands.
He also reflected on the past quarter, saying it ended on a strong note after a turbulent start when investors panicked over President Donald Trump’s so-called “liberation day.” Back in April, Trump announced steep tariffs on products from a slew of countries, including the U.S.’s biggest trading partners.
The market has recouped most of its losses since then. Cramer pointed out that the averages managed to finish up on Friday, shrugging off losses incurred this afternoon when the president announced he had ended trade talks with Canada.
“We’re headed for a shortened week after a terrific quarter, one that started horrendously and finished incredibly strong, showing you that staying the course is the only logical way to approach this often mercurial and treacherous market,” Cramer said.
On Monday, Cramer is scheduled to interview Amazon CEO Andy Jassy. He said he hopes Jassy can give insight into consumer spending, especially after data released Friday indicated some consumers were tightening their belts. Monday also brings the Chicago Purchasing Managers’ Index, which provides manufacturing data. Cramer said the report is a solid indicator of the health of the industrial economy and could put pressure on the Fed to cut interest rates if it’s weak.
Tuesday brings earnings results from Constellation Brands, and Cramer said he expects a miss, adding that the company is a microcosm of what’s plaguing the consumer packaged goods sector as a whole. According to Cramer, both the rise of GLP-1 weight loss drugs and consumers’ growing preference for cannabis is hurting alcohol names broadly. He also pointed out that Constellation Brands — known for brands including Modelo, Pacifico and Corona — said Trump’s immigration policy is weighing on sales. Roughly half of Constellation Brands’ beer sales come from Hispanic consumers, and management said Trump’s efforts to ramp up deportations is causing that group to spend less, especially as many grow concerned about employment loss.
Mortgage application figures will be released Wednesday, and Cramer said the data has become “an albatross for the entire economy.”
Thursday is the key day of the week because the newest labor report is set to be released, Cramer said. If the data is weak, he continued, Trump might again harshly criticize Fed Chair Jerome Powell. Weaker nonfarm payrolls might also put the possibility of a July rate cut back on the table, Cramer added.
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