Business

Monday – Friday, 6:00 – 7:00 PM ET

After a turbulent week of trading, CNBC’s Jim Cramer told investors that he believes stocks will perform better going forward.
“You’ve got to adjust your mindset to a world where the bears are finally in retreat, because I’m betting the next four weeks will be much better than what we’ve come to be used to,” he said.

CNBC’s Jim Cramer told investors on Friday that after a turbulent week of trading, he believes stocks will perform better going forward.
“You’ve got to adjust your mindset to a world where the bears are finally in retreat, because I’m betting the next four weeks will be much better than what we’ve come to be used to,” he said.

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Stocks rose on Friday but ended the week down after Wall Street digested a slew of corporate earnings, economic data reports and speeches from Federal Reserve officials. The major indexes are still up for the month.
Cramer attributed the market’s resiliency to both exhausted sellers and animal spirits — the tendency for stocks to move based on investor sentiment. “They keep giving us a boost, as we’re further along in the process of making a bottom,” he said.
He also previewed next week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.
Monday: J.M. Smucker, Jacobs Solutions, Dell Technologies, Zoom
J.M. Smucker

Q2 2023 earnings release at 7 a.m. ET; pre-recorded conference call at 7 a.m. ET and conference call at 9 a.m. ET
Projected EPS: $2.18
Projected revenue: $2.17 billion

Cramer said that he expects the company to start the week off with a bang.
Jacobs Solutions

Q4 2022 earnings release between 6:15 and 6:45 a.m. ET; conference call at 10 a.m. ET
Projected EPS: $1.77
Projected revenue: $3.79 billion

The company will give insight into where the federal spending from the Biden administration’s infrastructure bill and the CHIPS Act might be headed, he predicted.
Dell Technologies

Q3 2023 earnings release at 4:25 p.m. ET; conference call at 4:30 p.m. ET
Projected EPS: $1.68
Projected revenue: $24.67 billion

Cramer said he’s betting the company is feeling the pain from the inventory glut in personal computers, but is curious as to where the company is in the cycle.
Zoom

Q3 2023 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
Projected EPS: 88 cents
Projected revenue: $1.19 billion

The company should either invest in growing or put itself up for sale, Cramer said.
Tuesday: Best Buy, American Eagle, Burlington, Dollar Tree, Dick’s Sporting Goods
Best Buy

Q3 2023 earnings release at 7 am. ET; conference call at 8 a.m. ET
Projected EPS: $1.03
Projected revenue: $10.31 billion

He said the stock has fallen enough that it has a decent risk-reward ratio, especially if it dips further on Monday.
American Eagle

Q3 2022 earnings before the bell; conference call at 11 a.m. ET
Projected EPS: 22 cents
Projected revenue: $1.21 billion

The stock could finally be bottoming, Cramer predicted.
Burlington

Q3 2022 earnings release at 6:45 a.m. ET; conference call at 8:30 a.m. ET
Projected EPS: 52 cents
Projected revenue: $2.06 billion

He said he’s interested in how the off-price retailer is doing, especially since Ross and TJX reported standout quarters recently.
Dollar Tree

Q3 2022 earnings release at 7:30 a.m. ET; conference call at 9 a.m. ET
Projected EPS: $1.18
Projected revenue: $6.84 billion

Cramer pointed out that discount stores like Dollar Tree tend to do well during times of economic volatility.
Dick’s Sporting Goods

Q3 2022 earnings release at 7:30 a.m. ET; conference call at 10 a.m. ET
Projected EPS: $2.27
Projected revenue: $2.70 billion

He said he’s expecting a great quarter from the company.
Wednesday: Deere

Q4 2022 earnings release between 6:15 and 6:45 a.m. ET; conference call at 10 a.m. ET
Projected EPS: $7.12
Projected revenue: $13.45 billion

“I think the ag cycle’s one of the most enduring themes of this year, and Deere’s right at the center of it,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares of TJX.

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Monday – Friday, 6:00 – 7:00 PM ET

It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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AST SpaceMobile Inc: “It’s an exciting thing, not a stock. I think a stock is a company that makes money and then returns some of that money to you and trades inexpensively, and that one doesn’t qualify.”

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Cano Health Inc: “What the heck is going on with Cano Health? … The stock is just in freefall.”

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Blue Bird Corp: “That school bus company is not to be touched, because they’re doing very poorly.”

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MP Materials Corp: “It’s doing a great job, they’ve got a contract with GM. … GM’s a winner, and so is MP.”

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Icon Plc: “I like it. It’s a very inexpensive stock.”

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Taylor Swift accepts an award onstage during the MTV Europe Music Awards 2022 held at PSD Bank Dome on November 13, 2022 in Duesseldorf, Germany.
Jeff Kravitz | Filmmagic | Getty Images

Ticketmaster, part of Live Nation, is facing scrutiny for its roll out of Taylor Swift concert tickets.
The New York Times reported Friday the Justice Department had opened an antitrust probe into Live Nation after the fiasco. The company has previously found itself under pressure from regulators for monopolistic practices.
The Biden has been actively pushing for more competition across industries.

White House Press Secretary Karine Jean-Pierre answers questions during the daily press briefing at the White House in Washington, August 9, 2022.
Evelyn Hockstein | Reuters

White House Press Secretary Karine Jean-Pierre indicated that U.S. President Joe Biden has little sympathy for Ticketmaster’s parent company Live Nation, which is reportedly facing an antitrust probe over the fiasco Taylor Swift fans faced in trying to snag seats for her upcoming Eras Tour.
Declining to comment on “any potential investigation” by the Justice Department, Jean-Pierre said Biden has been clear on how he feels about companies that hold monopolies.

“He’s been crystal clear on this,” Jean-Pierre said Friday. “And I quote: ‘capitalism without competition isn’t capitalism, it’s exploitation.'”
Biden later tweeted that his administration was doing everything it could to cut so-called junk fees, including those charged to see a show over the holidays.
Ticketmaster, part of Live Nation, is facing scrutiny for its roll out of Taylor Swift concert tickets.
The CEO of Live Nation’s biggest shareholder Liberty Media’s Greg Maffei said the presale was only supposed to be open to around 1.5 verified Swifities but 14 million people, including bots, descended on the site for tickets. After the chaotic release this week, Ticketmaster announced it would not sell tickets for the “Eras” tour to the general public Friday as planned.
Demand for tickets to her tour was heightened by the recent release of her album “Midnights” and the fact that Swift has not toured since 2018. Her “Lover Fest” tour was canceled due to the pandemic. Swift criticized the roll out in an Instagram post.

“It’s truly amazing that 2.4 million people got tickets, but it really pisses me off that a lot of them feel like they went through several bear attacks to get them,” Swift wrote.
The New York Times reported Friday the Justice Department had opened an antitrust probe into Live Nation after the fiasco. The company has previously found itself under pressure from regulators for monopolistic practices. Live Nation Entertainment is a merger between Ticketmaster and Live Nation in 2010. It was approved by the Justice Department at the time but the company has been repeatedly accused of abusing market power by hiking ticket prices and adding arbitrary fees.
The Biden has been actively pushing for more competition across industries. DOJ recently blocked publisher Penguin Random House’s purchase of Simon & Schuster. Two weeks ago the administration also announced plans to crack down on “junk fees.”
Lawmakers too have called on the Justice Department to investigate the company.
“Daily reminder that Ticketmaster is a monopoly,” Rep. Alexandria Ocasio-Cortez, D-N.Y., wrote in a Tweet Tuesday. “Its merger with LiveNation should never have been approved, and they need to be reigned in. Break them up.”
Sen. Amy Klobuchar, D-Minn., chair of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights. Klobuchar sent a letter to Ticketmaster president and CEO Michael Rapino asking him to respond to questions about allegedly anti-competitive tactics by the company.

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The H3N2 variant has been associated with more severe flu seasons for children and the elderly in the past, according to the CDC.
Public health labs have detected H3N2 in 76% of the more than 3,500 respiratory samples that have tested positive for the flu and were analyzed for the virus subtype
The flu hospitalization rate has surged to a decade high this season.

A sign advertising flu shots is displayed at a Walgreens pharmacy on January 22, 2018 in San Francisco, California. A strong strain of H3N2 influenza has claimed the lives of 74 Californians under the age of 65 since the flu season began in October of last year.
Justin Sullivan | Getty Images

A variant of the flu that hits kids and seniors worse than other strains of the virus is dominant in the U.S. right now, setting the country up for a potentially bad flu season.
Public health labs have detected influenza A(H3N2) in 76% of the more than 3,500 respiratory samples that have tested positive for the flu and were analyzed for the virus subtype, according to a surveillance report published Friday by the Centers for Disease Control and Prevention.

The H3N2 variant has been associated with more severe flu seasons for children and the elderly in the past, according to Dr. Jose Romero, director the CDC’s National Center for Immunization and Respiratory Disease.
“There are also early signs of influenza causing severe illness in precisely these two groups of individuals this season,” Romero told reporters on a call earlier this month.
The flu hospitalization rate has surged to a decade high this season. Overall, about 8 people per 100,000 are being hospitalized with the flu right now but seniors and the youngest children are much harder hit than other age groups, according to CDC data.
The hospitalization rate for seniors is more than double the general population at 18 per 100,000. For kids younger than age five, the hospitalization rate is about 13 per 100,000.

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At least 4.4 million people have fallen ill with the flu, 38,000 have been hospitalized, and 2,100 have died since the season started. Seven kids have died from the flu so far this season.

“When we have more H3N2, we usually have a more severe flu season — so longer duration, more children affected, more children with severe disease,” said Dr. Andi Shane, a pediatrician and infectious disease expert at Children’s Healthcare Atlanta.
The other influenza A variant, H1N1, is generally associated with less severe seasons compared with H3N2, Shane said. H1N1 makes up about 22% of sample that have tested positive for flu and were analyzed for a subtype, according to CDC.
The percentage of patients reporting symptoms similar to the flu, a fever of 100 degrees or greater plus a sore throat or cough, is the highest in Virginia, Tennessee, South Carolina, Alabama and Washington D.C right now, according to CDC.
Respiratory illnesses are also very high in Arkansas, Colorado, Georgia, Kentucky, New Jersey, Maryland, Mississippi, New Mexico, North Carolina and Texas, according to CDC.
The CDC recommends that everyone 6 months or older get a flu shot. Children younger than age 8 who are receiving the vaccine for the first time should get two doses for the best protection.
The flu vaccine is normally 40% to 60% effective at preventing illness, but people who do still get sick are less likely to end up in the hospital or die, according to the CDC.
Public health officials are also encouraging people to stay home when they are sick, cover coughs and sneezes and wash hands frequently. Those who want to take extra precautions can consider wearing a facemask indoors in public.

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Carvana is laying off about 1,500 people, or 8% of its workforce, following a free fall in the company’s stock this year and concerns around its long-term trajectory.
The email from Carvana CEO Ernie Garcia cites economic headwinds including higher financing costs and delayed car purchasing.
He says the company “failed to accurately predict how this would all play out and the impact it would have on our business.”

A Carvana used car “vending machine” on May 11, 2022 in Miami, Florida.
Joe Raedle | Getty Images

Carvana is laying off about 1,500 people, or 8% of its workforce, Friday following a free fall in the company’s stock this year, a weakening used vehicle market and concerns around the company’s long-term trajectory, according to an internal message first obtained by CNBC’s Scott Wapner.
The email from Carvana CEO Ernie Garcia, titled “Today is a hard day,” cites economic headwinds including higher financing costs and delayed car purchasing. He says the company “failed to accurately predict how this would all play out and the impact it would have on our business.”

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“Today is a difficult day. The world around us has continued to get tougher and to do what is best for the business, we have to make some painful choices to adapt,” Garcia wrote in the Friday email to employees.
The layoffs add to a growing number of tech-focused job cuts amid rising interest rates, persistent inflation and fears of an economic downturn. For Carvana, it also follows rapid growth but some missteps during the coronavirus pandemic to better capitalize on an unprecedently strong used vehicle market.
Carvana stock closed Friday at $8.06 per share, down by 3.1%. Carvana’s stock has plummeted by about 97% this year after reaching an all-time intraday high of $376.83 per share on Aug. 10, 2021.

A spokeswoman for Carvana confirmed the authenticity of the letter but declined further comment.
The layoffs mainly impact employees in Carvana’s corporate and tech departments as well as some operational positions where it is “eliminating roles, locations or shifts to match our size with the current environment,” according to the letter.

Garcia said impacted employees will receive separation and severance pay, extended health-care coverage for three months and other other benefits.
“To those impacted, I am sorry,” Garcia said. “As you all know, we made a similar decision to this one in May. It is fair to ask why this is happening again, and yet I am not sure I can answer it as clearly as you deserve.”
Carvana grew exponentially during the pandemic, as shoppers shifted to online purchasing rather than visiting a dealership, with the promise of hassle-free selling and purchasing of used vehicles at a customer’s home.
But Carvana did not have enough vehicles to meet the surge in consumer demand or the facilities and employees to process the vehicles it did have in stock. That led Carvana to purchase ADESA and a record number of vehicles amid sky-high prices as demand slowed amid rising interest rates and recessionary fears.
The layoffs come two weeks after a recent stock sell-off after the company missed Wall Street’s top- and bottom-line expectations for the third quarter. Carvana reported declines in revenue, profit and sales compared with a year earlier.
Morgan Stanley pulled its rating and price target for the stock following the results. Analyst Adam Jonas cited deterioration in the used car market, company’s debt and a volatile funding environment for the change.
Read the full email from Carvana CEO Ernie Garcia:

Download the full document here.

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In October, U.S. buyers needed to earn $107,281 to afford the median monthly mortgage payment of $2,682 for a “typical home,” according to Redfin.
That’s 45.6% higher than the $73,668 yearly income needed to cover the median mortgage payment 12 months ago.
However, experts say there are a few ways to reduce your monthly mortgage payment.

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It’s no secret that it’s a tough market for prospective home buyers.
In October, U.S. buyers needed to earn $107,281 to afford the median monthly mortgage payment of $2,682 for a “typical home,” Redfin reported this week. 

That’s 45.6% higher than the $73,668 yearly income needed to cover the median mortgage payment 12 months ago, the report finds.
The primary reason is rising mortgage interest rates, said Melissa Cohn, regional vice president at William Raveis Mortgage. “The bottom line is mortgage rates have more than doubled since the beginning of the year,” she said.
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Despite the sharp drop reported this week, the average interest rate for a 30-year fixed-rate mortgage of $647,200 or less was hovering below 7%, compared to under 3.50% at the beginning of January.
And while home values have softened in some markets, the average sales price is up from one year ago.

“Home prices have gone up substantially, mortgage rates have more than doubled and that’s just crushing affordability,” said Keith Gumbinger, vice president of mortgage website HSH.
Meanwhile, a higher cost of living is still cutting into Americans’ budgets, with annual inflation at 7.7% in October.

How to make your mortgage more affordable 

While the current conditions may feel bleak for buyers, experts say there are a few ways to reduce your monthly mortgage payment.
For example, a higher down payment means a smaller mortgage and lower monthly payments, Gumbinger explained. “More down in this sort of environment can definitely play a role in getting your mortgage cost under control,” he said.
Another option is an adjustable-rate mortgage, or ARM, which offers a lower initial interest rate compared to a fixed-rate mortgage. The rate later adjusts at a predetermined intervals to the market rate at that time.
An ARM may also be worth considering, as long as you understand the risks, Cohn said.

If you’re planning to stay in the home for several years, there’s a risk you won’t be able to refinance to a fixed-rate mortgage before the ARM adjusts, she said. And in a rising rate environment, it’s likely to adjust higher.
Your eligibility for a future refinance can change if your income declines or your home value drops. “That’s a greater risk, especially for a first-time homebuyer,” Cohn said.
Of course, home values and demand vary by location, which affects affordability, Gumbinger said. “Being patient and being opportunistic is a good strategy for market conditions like this,” he said.

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Home sales declined for the ninth straight month in October.
Sales of previously owned homes dropped 5.9% from September to October, according to the National Association of Realtors.
That is the slowest pace since December 2011, with the exception of a very brief drop at the beginning of the Covid-19 pandemic.

Home sales declined for the ninth straight month in October, as higher interest rates and surging inflation kept buyers on the sidelines.
Sales of previously owned homes dropped 5.9% from September to October, according to the National Association of Realtors. That is the slowest pace since December 2011, with the exception of a very brief drop at the beginning of the Covid-19 pandemic.

The October reading put sales at a seasonally adjusted, annualized pace of 4.43 million units. Sales were 28.4% lower year over year.
Even as sales slow, supply is still stubbornly low. There were 1.22 million homes for sale at the end of October, an decrease of just under 1% both month to month and year over year. That’s a 3.3-month supply at the current sales pace. Historically, a balanced market is considered to be a six-month supply.

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The median price of an existing home sold in October was $379,100, an increase of 6.6% from the year before. The price gains, however, are shrinking, as the seasonal drop in home prices this time of year appears to be much deeper than usual.
“Inventory levels are still tight, which is why some homes for sale are still receiving multiple offers,” said Lawrence Yun, chief economist for the NAR. “In October, 24% of homes received over the asking price. Conversely, homes sitting on the market for more than 120 days saw prices reduced by an average of 15.8%.”

A “For Sale” sign outside a house in Albany, California, on Tuesday, May 31, 2022.
David Paul Morris | Bloomberg | Getty Images

Overall, homes went under contract in 21 days in October, up from 19 days in September and 18 days in October 2021. More than half, 64%, of homes sold in October 2022 were on the market for less than a month, suggesting that there is still strong demand if the home is priced right.
While sales are dropping now across all price points, they are weakening most in the $100,000 to $250,000 range and in the $1 million plus range. On the lower end, that is likely due to the severe shortage of available homes in that price range. Big losses in the stock market, as well as inflation and global economic uncertainty, may be weighing on high-end buyers.
First-time buyers, who are likely most sensitive to the increase in mortgage rates, made up just 28% of sales, down from 29% the year before. This cohort usually makes up 40% of home purchases. Investors or second-home buyers pulled back, buying just 16% of the homes sold in October compared with 17% in October 2021.
Mortgage rates are now more than double the record lows seen just at the start of this year. But recent volatility in rates is also wreaking havoc on potential buyers. Rates shot up in June, settled back in July and August, and continued even higher in September and October. Then they dropped back again pretty sharply last week.
“For many, the week-to-week volatility in mortgage rates alone, which in 2022 has been three times what was typical, may be a good reason to wait,” said Danielle Hale, chief economist with Realtor.com. “With week-to-week changes in mortgage rates causing $100+ swings in monthly housing costs for a median-priced home, it’s tough to know how to set and stick to a budget.”

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The conservative, gas-rich Muslim nation does not fully ban alcohol for visitors, but its sale and consumption is strictly controlled.
The decision casts uncertainty over the tournament’s $75 million sponsorship by major beermaker Budweiser and is angering many organizers and attending fans already frustrated over restrictions.
Budweiser’s non-alcoholic beer, Bud Zero, will continue to be sold at all eight of the country’s World Cup stadiums, FIFA said in a statement.

Alex Tai | SOPA Images | Getty Images

Qatar is banning all beer sales at and around its World Cup stadiums, in a dramatic U-turn just two days before the massive soccer tournament begins, world soccer governing body FIFA confirmed on Friday.
“Following discussions between host country authorities and FIFA, a decision has been made to focus the sale of alcoholic beverages on the FIFA Fan Festival, other fan destinations and licensed venues, removing sales points of beer from Qatar’s FIFA World Cup 2022 stadium perimeters,” a statement from FIFA said.

The conservative, gas-rich Muslim nation does not fully ban alcohol for visitors, but its sale and consumption is strictly controlled. Alcohol is typically only allowed in a handful of specifically-licensed hotels and restaurants and away from street view.
Budweiser’s non-alcoholic beer, Bud Zero, will continue to be sold at all eight of the country’s World Cup stadiums, the statement said. Alcoholic beer will still be available at specifically permitted fan zones in Qatar after 6:30 p.m., and intoxicated fans will be sent to special zones to sober up.
“Host country authorities and FIFA will continue to ensure that the stadiums and surrounding areas provide an enjoyable, respectful and pleasant experience for all fans,” it added. “The tournament organisers appreciate AB InBev’s understanding and continuous support to our joint commitment to cater for everyone during the FIFA World Cup Qatar 2022.”
The reported decision throws the tournament’s $75 million sponsorship by major beermaker Budweiser into question and is set to anger many organizers and attending fans already frustrated over restrictions that are new to the 92-year old event.

Qatar had initially relaxed its alcohol restrictions to allow Budweiser, which has been the World Cup’s exclusive beer distributor since 1986, to sell its products in Qatar World Cup official venues, specifically the stadiums and fan zones. This is what enabled Budweiser’s parent company, AB InBev, to renew its contract with FIFA through 2022 more than a decade ago after Qatar’s hosting bid was confirmed.

The policy for serving beer in the country during the games was finalized among organizers in September, but just last weekend orders were delivered from the highest rungs of the government to relocate beer tents in stadiums further out of view, according to reports.
Friday’s announcement yanks not only the tensions of a religiously conservative country hosting a traditionally beer-soaked tournament into the spotlight, but also glaring questions about planning and management problems.
CNBC has reached out to AB InBev for comment. Budweiser’s official Twitter account, which has been a consistent stream of World Cup promotional content, initially tweeted, “Well, this is awkward,” after the news was announced, only to delete the post shortly afterward.

A controversial World Cup host

FIFA’s pick for Qatar, a tiny state in the Gulf with a population of 3 million people and a limited soccer history, to host the 2022 World Cup was controversial from the outset when the selection was made in 2010.
Qatar’s hosting of the tournament, which is expected to bring in an estimated 1.2 million tourists, has been marred with controversy and criticism over a number of issues. These include human rights concerns, workers’ conditions, visitor capacity issues, cultural and religious restrictions, and the fact that for the first time in its history, the World Cup is taking place in winter rather than summer due to the country’s extreme heat during its summer months.
It’s also drawn criticism for last minute changes, including a request to delay the tournament’s start by a few days that came only in August, a demand just last week from the government that beer stands be moved further away from stadiums, and finally Friday’s decision to ban beer sales around stadiums altogether, just over 48 hours before the first match begins on Sunday.
The Football Supporters’ Association, a representative group for soccer supporters in England and Wales, published a statement calling out the decision to ban beer sales.
“Some fans like a beer at the match, and some don’t, but the real issue is the last minute u-turn which speaks to a wider problem – the total lack of communication and clarity from the organising committee towards supporters,” it said on its website.
“If they can change their minds on this at a moment’s notice, with no explanation, supporters will have understandable concerns about whether they will fulfil other promises relating to accommodation, transport or cultural issues.”
Correction: This story has been updated with the correct figure for Budweiser’s sponsorship deal.

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