3 events will set the tone for the market in October

CNBC’s Jim Cramer said Friday that three key events next week will determine whether the nightmare month for the stock market continues into October.

Here are the events:

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• The release of the non-farm labor report on Friday. Cramer said he expects him to show inflated hiring and wages.
• Two speeches by Cleveland Fed Chair Loretta Mester, who Cramer says is the top inflation hawk on the Federal Open Market Committee. “She wants to protect us … from high inflation, even if that means raising interest rates in a recession,” he said.

The S&P 500 closed its worst month since March 2020 on Friday. The Dow Jones Industrial Average and the Nasdaq Composite fell 8.8% and 10.5% respectively for the month.

While both Mester and the report are likely to bring bad news, investors can protect themselves from a market meltdown if they stick to a solid game plan, according to Cramer.

“Owning high-quality companies with good balance sheets and high dividends that will benefit from lower inflation, because that’s what’s going to happen,” he said.

He also previewed next week’s earnings list. All earnings and income estimates are courtesy of FactSet.

Wednesday: Helen of Troy, Lamb Wesson

Helen of Troy

• Publication of the results for the second quarter of 2023 before the bell; conference call at 9 a.m. ET
• Projected EPS: $2.21
• Forecast revenue: $521 million

Lamb Weston Holdings

• First Quarter 2023 Earnings Release at 8:30 a.m. ET; conference call at 10 a.m. ET
• Projected EPS: 79 cents
• Projected revenue: $1.21 billion

“We saw that from Nike last night – all that happens is that the downside gets bigger while the upside just walks on water or goes up slightly higher. That’s what I expect it to happen with both when they report,” Cramer said.

Thursday: Constellation Brands, Conagra Brands, McCormick, Norwegian Cruise Line Holdings

Constellation Brands

• Q2 2023 earnings release at 7:30 a.m. ET; conference call at 10:30 a.m. ET
• Projected EPS: $2.81
• Projected revenue: $2.51 billion

He said he expects the company’s sales to be “extraordinarily good”.

Conagra Brands

• First Quarter 2023 Earnings Release at 7:30 a.m. ET; conference call at 9:30 a.m. ET
• Projected EPS: 52 cents
• Projected revenue: $2.85 billion

The company needs to expand its business, according to Cramer.

McCormick

• Third Quarter 2022 Earnings Release at 6:30 a.m. ET; conference call at 8 a.m. ET
• Projected EPS: 71 cents
• Projected revenue: $1.6 billion

Cramer said the company’s earnings call will simply bolster its weaker-than-expected third-quarter earnings and full-year outlook announced earlier this month.

Norwegian cruise line

• Investor meeting at 10 a.m. ET

Cramer said he expects Norwegian to perform better than rival Carnival, which faced higher costs in its latest quarter, but it’s unclear if that will be enough to help Norwegian’s actions.

Friday: Tilray Brands

• First Quarter 2023 Earnings Release at 7:00 a.m. ET; conference call at 8:30 a.m. ET
• Projected loss: loss of 5 cents per share
• Projected revenue: $169 million

He predicted the company would make a “bold” statement on cannabis legalization and said he wondered if it might be a great speculative stock to own during the Biden administration.

Disclosure: Cramer’s Charitable Trust owns stock in Constellation Brands.