The jobs report will make or break the July rally

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

“If it shows some job growth without wage inflation, July’s wonderful recovery can continue. But if it shows an employment boom with big wage increases, some, if not much of that rise will be offset.” The host of “Crazy Money” said.

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 that the Federal Reserve, which added a three-quarters of a percentage point increase in interest rates last week, will have to take stronger action to slow the economy and inflation.

Cramer also reviewed this week’s earnings list. All earnings and revenue estimates are provided by FactSet.

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

Uber

  • Announcing Q2 2022 earnings at a later date; 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” self-driving vehicles.

AMD

  • release of Q2 2022 earnings at 4:15 p.m. ET; Conference call at 5 p.m. ET
  • Expected EPS: $1.03
  • Expected revenue: $6.53 billion

Cramer expects AMD to likely deliver a solid performance.

Starbucks

  • Q3 2022 earnings release at 4:05 PM ET; Conference call at 5 p.m. ET
  • Expected EPS: 77 cents
  • Expected revenue: $8.15 billion

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

Airbnb

  • release of Q2 2022 earnings between 4 PM and 4:05 PM ET; Conference call at 4:30 p.m. ET
  • Expected EPS: 45 cents
  • Expected revenue: $2.11 billion

Cramer said the company will likely report that it’s doing well, adding that he believes Airbnb’s stock won’t rise unless it turns its cash flow into actual profits.

Jet Blue

  • Announcement of Q2 2022 earnings at 7 AM ET; Conference call at 10 a.m. ET
  • Expected loss per share: 11 cents
  • Expected revenue: $2.45 billion

Kramer said he believes the Department of Justice will block JetBlue’s acquisition of Spirit Airlines.

PayPal

  • release of Q2 2022 earnings at 4:15 p.m. ET; Conference call at 5 p.m. ET
  • Expected earnings per share: 87 cents
  • Expected revenue: $6.78 billion

“If you miss PayPal again, that’s Elliott’s game,” Cramer said, referring to the stake in the payment platform that activist investor Elliott Management recently acquired.

Wednesday: CVS

  • Announcement of Q2 2022 earnings at 6:30 a.m. ET; Conference call at 8 a.m. ET
  • Expected EPS: $2.18
  • Expected revenue: $76.41 billion

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

Thursday: Eli Lilly, Warner Bros Discovery, DoorDash

Eli Lilly

  • Announcing Q2 2022 earnings at 6:25 AM ET; Conference call at 9 a.m. ET
  • Expected EPS: $1.70
  • Expected revenue: $6.85 billion

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

Discover Warner Bros.

  • Announcing Q2 2022 earnings after the bell; Conference call at 4:30 p.m. ET
  • Expected EPS: 12 cents
  • Expected revenue: $11.85 billion

Cramer said he believes the company will try to fiddle with its huge debt load totaling about $55 billion.

DoorDash

  • Q2 2022 earnings release 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 will be able to revive its share price.

Disclosure: The Kramer Charitable Fund owns shares in AMD and Eli Lilly.

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