Even if we get more inflationary data next week, stock prices could still head higher, Jim Cramer told his Mad Money viewers Friday. That's because an aggressive stance on inflation from the Federal Reserve is already priced into the market. Macro issues, however, will still dominate stocks going into next week.
Cramer's game plan for next week starts on Monday with earnings from Dave & Busters (PLAY), which should provide a read on how restaurants are faring as our economy reopens.
The Action Alerts PLUS team says it's been a good week for equities. In the AAP portfolio, shares of Nucor (NUE) climbed double-digits, and core holdings Apple (AAPL), Advanced Micro Devices (AMD), Marvell (MRVL) and Nvidia (NVDA) also gained. Get in on the conversation and hear what they're telling their investment club members at Action Alerts PLUS.
Next, on Tuesday, we'll hear from spice maker McCormick (MKC), semiconductors maker Micron Technology (MU) along with Lululemon Athletica (LULU), PVH (PVH) and RH (RH) in the apparel and retail sector. Cramer was bullish on all of these stocks, but noted that PVH continues to struggle with soaring cotton prices.
Wednesday brings a small business update from Paychex (PAYX), along with earnings from Five Below (FIVE).
Then on Thursday, we'll hear from Walgreen Boots Alliance (WBA), the drugstore chain that's still not as good as rival CVS Health (CVS).
We'll end the week with the latest non-farm payroll numbers, which Cramer expects will show the tightest labor market in years, something that will force the Fed to take a tighter stance on inflation.
Executive Decision: dLocal
In his first "Executive Decision" segment, Cramer spoke for the first time with Sebastian Kanovich, CEO of dLocal Ltd. (DLO) , the payments processor focused on emerging markets. dLocal came public in 2021 and shares currently trade for 46 times earnings.
dLocal is a global company, Kanovich explained, with 300 employees in six offices across the globe. Consumers don't necessarily see the dLocal name when they make purchases, but they're a vital link in the payments chain.
Many consumers in emerging markets don't have access to credit cards, which is why dLocal partners with companies like Visa (V) and Mastercard (MA), but also deals in local wallets and cash payments. dLocal is used for both so-called "pay in" and "pay out" transactions, as it's important for companies to be able to accept payments from customers as well as pay out to employees and contractors.
Cramer said there aren't many beaten-down companies that are also profitable, but dLocal is one of them.
Nuclear Power Stocks
With the world doubling down on its efforts to eschew fossil fuels that come from authoritarian regimes, Cramer said it may be time to take a second look at nuclear power with stocks like Constellation Energy Group (CEG) .
Constellation Energy is one of only three pure-play nuclear operators in the U.S., making it a rarity for fund managers. 86% of Constellation's energy stems from nuclear power, where it operates six plants in Illinois, three in New York, two in Pennsylvania and also in Maryland and New Jersey.
With natural gas prices soaring, nuclear has become more competitive, and Constellation is a consistent grower with a small dividend that makes it extra attractive.
Am I Diversified?
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included Advanced Micro Devices, Apple, Coca-Cola (KO), JPMorgan Chase (JPM) and United Airlines (UAL). Cramer said this portfolio is properly diversified.
The second portfolio's top holdings included Microsoft (MSFT), Home Depot (HD), Duke Energy (DUK), Waste Management (WM) and Visa. Cramer also blessed this portfolio as well diversified.
The third portfolio had Microsoft, Moderna (MRNA), United Rentals (URI), Nvidia and Apple as its top five stocks. Here, Cramer suggested selling Microsoft and adding a defense stock or a consumer staple to replace it.
Lightning Round
In the Lightning Round, Cramer was bullish on Bank of America (BAC).
Cramer was bearish on Alcoa (AA), AGNC Investment (AGNC), Archer Aviation (ACHR) and Brighthouse Financial (BHF).
Bad News Can Create Opportunities
In his "No Huddle Offense" segment, Cramer said in a news vacuum, the news on FAANG (his acronym for Meta (FB), Amazon (AMZN), Apple, Netflix (NFLX) and Alphabet (GOOGL), tend to be only bad, and that's the perfect time to do some buying.
There's a lot to like about FAANG. Facebook has new plans to take on TikTok, Apple is considering a services bundle that could boost its earnings, and Amazon just received an analyst recommendation. Meanwhile, Netflix is making acquisitions and Google is doing what Google does best, making money for its shareholders.
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