The jobs report will make or break the July rally

CNBC’s Jim Cramer said Monday that the key data this week is the Bureau of Labor Statistics’ release of its July nonfarm payroll report on Friday morning.

“If it shows some job growth without wage inflation, then the fantastic July rally could hold. But if it shows booming hiring with exceptionally large wage increases, then some, if not much of it, of this rally will be withdrawn,” said the “Mad Money” host.

Job growth has been strong this year, leading economists to say the US is not in a recession, even with two consecutive quarters of negative GDP.

Another strong jobs report could mean the Federal Reserve, which added a three-quarters percentage point rate hike last week, will need to take stronger action to slow the economy and inflation.

Cramer also provided a preview of this week’s results. All earnings and revenue estimates are from FactSet.

Tuesday: Uber, AMD, Starbucks, Airbnb, JetBlue, PayPal

Uber

  • Q2 2022 earnings figures at TBD time point; conference call at 8 a.m. ET
  • Expected loss: loss of 27 cents per share
  • Expected Revenue: $7.36 Billion

Cramer said he believes Uber will always struggle to make money unless it gets “real” autonomous vehicles.

AMD

  • Q2 2022 earnings figures at 4:15 PM ET; conference call at 5 p.m. ET
  • Expected earnings per share: $1.03
  • Expected Revenue: $6.53 Billion

AMD is likely to report a strong performance, Cramer predicted.

Starbucks

  • Q3 2022 earnings figures at 4:05 PM ET; conference call at 5 p.m. ET
  • Expected earnings per share: 77 cents
  • Expected Revenue: $8.15 Billion

Cramer said he wants to bet on Starbucks CEO Howard Schultz, not him.

Airbnb

  • Q2 2022 earnings figures between 4 p.m. and 4:05 p.m. ET; conference call at 4:30 p.m. ET
  • Expected earnings per share: 45 cents
  • Expected Revenue: $2.11 Billion

The company will likely report that things are going well, Cramer said, adding that he believes Airbnb’s stock won’t move higher unless it converts its cash flow into actual earnings.

JetBlue

  • Q2 2022 earnings figures at 7:00 a.m. ET; conference call at 10 a.m. ET
  • Expected loss per share: 11 cents
  • Expected Revenue: $2.45 Billion

Cramer said he believes the Justice Department will block JetBlue’s deal to acquire Spirit Airlines.

paypal

  • Q2 2022 earnings figures at 4:15 PM ET; conference call at 5 p.m. ET
  • Expected earnings per share: 87 cents
  • Expected Revenue: $6.78 Billion

“If PayPal misses again, it’s Elliott’s ballgame,” Cramer said, referring to activist investor Elliott Management’s recently acquired stake in the payment platform.

Wednesday: CVS

  • Q2 2022 earnings figures at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Expected Earnings Per Share: $2.18
  • Expected Revenue: $76.41 Billion

Cramer said he expects the retail giant to report large numbers.

Thursday: Eli Lilly, Warner Bros Discovery, DoorDash

Eli Lilly

  • Q2 2022 earnings figures at 6:25 am ET; conference call at 9 a.m. ET
  • Expected Earnings Per Share: $1.70
  • Expected Revenue: $6.85 Billion

Cramer said he believes the success of Eli Lilly’s new weight loss drug will help the company report a great quarter.

Warner Bros Discovery

  • Q2 2022 earnings figures after the bell; conference call at 4:30 p.m. ET
  • Expected earnings per share: 12 cents
  • Expected Revenue: $11.85 Billion

Cramer said he believes the company will try to get rid of its massive debt load totaling about $55 billion.

DoorDash

  • Q2 2022 earnings figures at 4:05 PM ET; conference call at 6 p.m. ET
  • Expected loss per share: 21 cents
  • Expected Revenue: $1.52 Billion

Cramer said he’s not sure if DoorDash can revive its stock price.

Disclosure: Cramer’s Charitable Trust owns shares of AMD and Eli Lilly.

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