Don’t “be a hero” as the Fed fights inflation

CNBC̵[ads1]7;s Jim Cramer warned investors on Friday not to increase their portfolios until the stock market and the economy become less volatile.

“This economy is a runaway train; it’s crushed through the Fed’s blockades today, so now they can just blast the tracks to derail the whole thing. When they detonate, it will be safe to buy. Until then, I urge you not to be a completely,” he said.

Cramer warned that he expects central bank officials to stick to their hawkish stance on inflation, adding that next week’s producer price index and consumer price index could shed more light on the state of inflation and the Fed’s next move.

Stocks fell on Friday after the September jobs report signaled that the labor market is strengthening despite the central bank’s aggressive rate hikes.

“There’s always the possibility that this is the last glowing employment number, in which case the Fed tightens into an abyss and the damage could be catastrophic,” he said.

Cramer also previewed next week’s results list. All earnings and revenue estimates are provided courtesy of FactSet.

Wednesday: PepsiCo

• Q3 2022 results announcement at 6 a.m. ET; conference call at 8.15 ET
• Estimated EPS: $1.84
• Estimated revenue: $20.81 billion

Cramer said he hopes the company will report that crude costs are coming down.

Thursday: Delta Airlines, Walgreens Boots Alliance, Domino’s Pizza, BlackRock

Delta Air Lines

• Q3 2022 earnings announcement at 6:30 a.m. ET; conference call at 10 A.M
• Estimated EPS: $1.55
• Estimated revenue: $12.90 billion

The company is likely concerned about rising oil prices, Cramer predicted.

Walgreens Boots Alliance

• Q4 2022 results announcement at 7 a.m. ET; conference call at 8:30 a.m. ET
• Estimated EPS: 77 cents
• Estimated revenue: $32.09 billion

Domino’s Pizza

• Q3 2022 earnings announcement at 7:30 a.m. ET; conference call at 10 A.M
• Estimated EPS: $2.98
• Estimated revenue: $1.07 billion

He said he believes both Walgreens and Domino’s are dealing with worker shortages.

Black stone

• Q3 2022 earnings announcement at 6:15 a.m. ET; conference call at 8:30 a.m. ET
• Estimated EPS: $7.64
• Estimated revenue: $4.3 billion

Cramer said he is betting the company will report good results and that he will be a buyer of the stock.

Friday: JPMorgan Chase, Wells Fargo, Morgan Stanley, UnitedHealth Group

JPMorgan Chase

• Q3 2022 results announcement at 7 a.m. ET; conference call at 8:30 a.m. ET
• Estimated EPS: $2.92
• Estimated revenue: $32.13 billion

Wells Fargo

• Q3 2022 results announcement at 7 a.m. ET; conference call at 10 A.M
• Estimated EPS: $1.10
• Estimated revenue: $18.76 billion

Morgan Stanley

• Q3 2022 earnings announcement at 7:30 a.m. ET; conference call at 9:30 a.m. ET
• Estimated EPS: $1.52
• Estimated revenue: $13.24 billion

“With employment still red hot, it’s entirely possible that the banks could make a killing here without much risk of bad loans,” Cramer said.

UnitedHealth Group

• Q3 2022 earnings announcement at 5:55 a.m. ET; conference call at 8.45 ET
• Estimated EPS: $5.43
• Estimated revenue: $80.52 billion

Although he believes the quarter will be solid, he expects the stock to fall if the company’s results are not perfect.

Disclaimer: Cramer’s Charitable Trust owns stock in Morgan Stanley and Wells Fargo.