CNBC’s Jim Cramer outlined his strategy for the week ahead, warning that unrelenting oil prices linked to the Iran war continue to weigh on stocks and could signal further downside.
“It’s been another terrible week. It’s been four weeks since the war started, and it’s pretty bad,” Cramer said Friday on “Mad Money.” He added: “The history of oil shocks is littered with bear markets, 20% drawdowns to raise money.”
Stocks ended lower on Friday, with the Nasdaq down 2.15%, the Dow Jones Industrial Average down 1.73% and the S&P 500 down 1.67%, leading to a fifth consecutive week of declines.
Because disputes are difficult to predict, Kramer said one trade was consistently strong. “The one thing that’s consistently true right now is to buy oil stocks. Every time they go down, every time they go up. It doesn’t matter, because oil is going up.”
This dynamic is accelerating the rotation of tech stocks. “Everyone is bad now, including those who used to be loved but are now hated.” Nvidia”, he said, noting that investors are now saying, “I don’t care if it’s a soda stock or a drug stock, and I have to say I like oil drilling companies.” There’s nothing technical about it. ”
Here’s what Cramer will be watching next week:
Monday
The market is likely to continue to be influenced by developments in the Iran war. With the Strait of Hormuz, a key oil corridor, still tied up and tensions between the US and Iran remaining high, oil prices are likely to rise and therefore stocks to fall.
Tuesday
McCormick & Company Reports containing catalysts that may lead to acquisition negotiations unileverfood brands. “I love this duo, and I hope they do well,” Kramer said. After closing nike I will report it. He cited competition and inventory issues as well as challenges in the Chinese market, saying, “Nike has no prospects of returning to greatness.” Investors can also obtain monthly JOLTS (JOLTS) reports from the Bureau of Labor Statistics.
Wednesday
conagra brand plans to report earnings and provide information on the packaged food group, which is under pressure. This report comes with retail sales figures that convey the health of consumer spending. Cramer said the Fed may need weak economic data to justify cutting rates.
Thursday
Commercial lighting company performance acuity brand Provides construction insights. Kramer said stocks have fallen 25% since the start of the year, linked to the slowdown in the housing and construction industry, and the industry has “little hope of accelerating” at this point.
Friday
Employment statistics are released on Good Friday, when markets close. Cramer said weak data could support the case for a rate cut. Still, sentiment remains very negative. “We are as pessimistic about stocks now as we were at the beginning of the coronavirus pandemic,” he said.
The bottom line: “This decline is not just about technology. It’s about what you get when you have both inflation and rising interest rates,” Cramer said. Kramer says market pressures are unlikely to ease until oil is low and the war is over.
