Tech stocks climbed at a high level on Friday to close out the week, but CNBC’s Jim Cramer expects more downward effects in the tech cohort as investors continue to rotate from high-growth names.
“Like it or not, the stock is currently joining the bond market,” said the host of “Mad Money.”
With bond yields rising amid early signs of an economic recovery, investors are fleeing from riskier growth stocks to cyclical stocks, particularly banking and industrial stocks that have underperformed, Cramer said.
The tech-heavy Nasdaq Composite has fallen in recent weeks and remains 7% lower than its high of about a month ago. However, the rotation from tech to value stocks won’t last forever, Cramer said.
“Either tech stocks get too low … or bond yields get too high. Until that happens, the rotation will continue,” he said. “We’re not there yet, but I’m sure we’ll get there eventually, because that’s what always ends these vicious rotations.”
Cramer revealed what’s on his agenda for the next week. Business performance projections are based on FactSet estimates:
Tuesday: GameStop, Adobe
- Q4 earnings disclosure: after market; conference call: 5:00 pm
- Projected Earnings Per Share: $ 1.35
- Expected Revenue: $ 2.21 billion
“The bulls hope to learn more about it this phone call [Ryan] Cohen’s plan when the company reports, and if there is anything good about these results at all, I expect to see a lot of purchases the next day, “Cramer said.
Adobe
- Q1 2021 profit release: after market; conference call: 5:00 pm
- Projected Earnings Per Share: $ 2.79
- Expected Revenue: $ 3.76 billion
“Unfortunately, the results are less important than the stand’s Wall Street fashion show,” he said. “If Adobe reports a great quarter and rates are skyrocketing that day, with a return at age 10 of nearly 2%, then the profit doesn’t matter at all.”
Wednesday: RH, GrowGeneration, General Mills
- Q4 earnings disclosure: after market; conference call: 5:00 pm
- Projected Earnings Per Share: $ 4.73
- Expected Revenue: $ 797 million
GrowGeneration
- Q4 earnings disclosure: after market; conference call: Thursday, 9 am
- Expected earnings per share: 7 cents
- Expected sales: $ 61.5 million
“You rarely hear those two mentioned in the same sentence, but right now they represent the most exciting parts of the retail industry,” Cramer said of RH and GrowGeneration.
“I suspect they will both report excellent rooms,” he said. “Home furnishings are currently the most popular part of retail purchases, as we’ve seen in the incredible neighborhood that Williams-Sonoma has just delivered, and the cannabis culture … [has] was an unstoppable force as a state after the state embraces legalization. “
General Mills
- Q3 2021 Profit Disclosure: Before Market; conference call: 9 am
- Expected earnings per share: 84 cents
- Expected Revenue: $ 4.45 billion
“I like this one as a way of taking the pantry temperature,” the host said. I think the response will be lukewarm, but then again Smucker has a positive surprise and I really like Hormel. So let’s listen. ‘
Thursday: Darden Restaurants
- Q3 2021 Profit Disclosure: Before Market; conference call: 8.30 am
- Expected earnings per share: 68 cents
- Expected Income: $ 1.61 billion
‘You know we have 150,000 [restaurants] which are closed? It means that the survivors should be in an incredible position, and so I expect them to crush the numbers, ”Cramer said of Darden.
Disclosure: Cramer’s charity owns shares of Facebook, Amazon, Goldman Sachs, JPM Organ Chase, and Wells Fargo.
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