Inflation takes center stage with retail earnings

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CNBC’s Jim Cramer on Friday previewed next week’s earnings slate and other pivotal market events, including congressional testimony from Federal Reserve chief Jerome Powell.

Given the calendar, the “Mad Money” host said he believes Wall Street’s primary focus will shift from Ukraine to the economy, specifically price pressures.

“Fortunately, even after today’s run, the averages remain somewhat oversold, but unfortunately inflation is sky-high right now,” Cramer said.

All earnings and revenue estimates are courtesy of FactSet.

Jim Cramer’s game plan for the trading week of Feb. 28

Mad Money with Jim Cramer

Monday: Workday, HP Inc. and Zoom Video

Tuesday: Target, Kohl’s, Domino’s Pizza and Salesforce

Target

While Target shares jumped 4% Friday, Cramer said it’s hard to know which type of retail story the company will tell when it reports. It’s unclear whether it will say that business is going great, or if it will speak largely about supply chain and inflation challenges, Cramer said.

Kohl’s

Predicting Kohl’s quarter is even more difficult than it is for Target, Cramer said, noting the department store chain has been the target of takeover talks.

Domino’s Pizza

Domino’s shares have been hit hard in recent weeks, Cramer said, simply because its performance is seen as consistent, not spectacular. “If Domino’s doesn’t blow the numbers away this time I think investors will decide that it was merely a Covid winner, not a post-Covid winner, even though it has many years of going higher. I disagree. I don’t make the rules, though,” he said.

Salesforce

Cramer said he thinks the “relentless, ruthless selling pressure” on Salesforce’s stock may have finally ended Thursday. “I think the dumping is overdone. I bet it makes the numbers,” said Cramer, whose Charitable Trust owns the enterprise software giant.

Wednesday: Dollar Tree, Powell hearing, Okta and Snowflake

Dollar Tree

Cramer said he’s not sure why Dollar Tree often is targeted by activist investors. Rather, he said he thinks the stock “is a winner,” particularly because the end of pandemic aid programs means some consumers need to shop at more discount-oriented retailers.

House Committee on Financial Services hearing

  • Full committee meets at 10 a.m. ET Wednesday for a hearing on “Monetary Policy and the State of the Economy”

Cramer said he’s not expecting Powell to make any major policy announcements during the hearing. The top U.S. central banker also will address the Senate Banking Committee on Thursday.

Okta

  • Q4 2022 earnings after the close; conference call at 5 p.m. ET Wednesday
  • Projected loss: Loss of 9 cents per share
  • Projected revenue: $489 million

Okta is one of the highest-valued stocks in the market, Cramer said, but he explained he’s not sure what to expect from the quarter given there’s been some recent turnover in management roles.

Snowflake

  • Q4 2022 earnings after the bell; conference call at 5 p.m. ET Wednesday
  • Projected EPS: 4 cents
  • Projected revenue: $591 million

Cramer said Snowflake is the high-multiple stock people have remained committed to as the market rotated away from growth-oriented tech. Cramer complimented the data-analytics software firm’s CEO, Frank Slootman, calling him the “newfound king of the cloud.”

Thursday: Kroger, Best Buy and Costco

Friday: February jobs report

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