Jim Cramer, host of Mad Money, offered some important insights to his viewers on Friday, advising them to closely monitor the upcoming Federal Reserve meeting and the earnings reports from companies. However, he also cautioned that irrespective of what the earnings reveal, the direction of the market will largely be determined by President Donald Trump and the Federal Reserve.
Cramer explained that Monday will mark a significant moment for understanding consumer behavior, as the February retail sales numbers will be released. He forecasted a sharp decline in consumer spending, which he attributed to growing fears among consumers about job security. Cramer noted that many consumers are left wondering if they might be the next to lose their jobs. He added:
“It’s unavoidable, the president’s ability to create a climate of hope or a climate of fear, and lately, Trump’s gone all in on fear.”
READ ALSO: Jim Cramer’s Latest Lightning Round: 7 Stocks in Focus and Jim Cramer Talked About These 7 Stocks Recently
The following day, Tuesday, will bring the release of February housing data, which Cramer emphasized as significant. He stressed that a strong housing market is essential in preventing a recession, which he described as “terrible”.
“Any kind of slowdown is quickly reflected in housing, which then gets reflected in retail. It’s a delicate chain that starts with housing, which is why I’ll be watching these numbers like a hawk.”
Cramer also expressed concern about the high prices of homes, noting that the cost of lumber is a significant factor, with much of the supply coming from Canada. However, he pointed out that the current tensions between the United States and Canada could exacerbate these price pressures.
Wednesday’s events are also of importance, as the Federal Reserve’s Open Market Committee will meet, and the market will hear from Jerome Powell, the Fed’s chair. Cramer noted that the most recent inflation data, including both the Consumer Price Index and the Producer Price Index, have been relatively favorable, which might suggest that inflation is under control. However, he cautioned that certain areas of the economy still experience persistent high prices.
Furthermore, as per Cramer, there is a looming possibility of a new round of tariffs, potentially as soon as next week, which could include a 25% tariff on all imported vehicles, perhaps on those from Germany, Japan, and South Korea. He then added:
“I fear the president will choose Wednesday to lower the boom so be prepared. Sure, the market’s oversold. It may stay oversold by Wednesday so it could possibly handle any auto-related tariff news, but you have to be ready for them.”
According to Cramer, the tariffs are inevitable, and their impact would not be gradual or measured. In conclusion, Cramer reiterated that the fate of the market this week will hinge more on actions from the White House and the Federal Reserve than on the earnings reports of individual companies.
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 14. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
8 Stocks in Focus Under Jim Cramer’s Game Plan
8. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 56
Cramer reckoned that Carnival Corporation & plc (NYSE:CCL) stands a chance to perform if it is not targeted by the relatively new administration.
“Finally, on Friday, we hear from Carnival, the cruise line. Cruise lines are flagged outside of the U.S., which has made them the target of the Commerce Department. I wonder if Commerce Secretary Howard Lutnick picks this day to lay into Carnival. If not, I think that the group’s been strong even as the stocks have been awful of late. We know the business isn’t weak and therefore, Carnival stock could be ready to roll as long as it’s not attacked by the administration.”
Carnival (NYSE:CCL) is a global provider of leisure travel services, known for its wide range of cruise brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises, and Cunard. Appearing on Squawk on the Street in February, Cramer said:
“Kind of shocking to say, one of the greatest groups in this market has been the cruise lines. It has just become, remarkable comeback, and this is the long on money, short on time. Meaning, let’s find the bar again and travel. . . These all got clocked. Why? Because Howard Lutnick, the new Commerce Secretary said that President Trump might wanna be able to get rid of the, their inability to pay tax. They don’t pay tax. Again, what I keep referring to is, Congress passed an actual codified section . . . saying that their income is not taxable! So you know, you need to get Congress to check off. Now, Citi in its note does say to make these changes we believe President Trump would need to focus on the cruise industry. But I’m implying that if the President does focus, then it gets rid of Congress. Now, look, maybe I’m outmoded. I have been focused on Congress cause that’s the way our country has, since, I don’t know, like Jefferson. But everything’s new! This needs Congressional approval. I don’t know how else he can do it!”
7. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders: 70
Lennar Corporation (NYSE:LEN) was part of his game plan for the week and Cramer said:
“One more, housing kingpin Lennar reports and, and if I think if what I think’s gonna happen, lumber will be on the table, it’ll be discussed very negatively. Stuart Miller, the executive chairman, will speak to the question of affordable housing. He’s been important in trying to make that happen as we saw earlier this week when CNBC focused on a Texas housing project that used 3D printing and concrete to build what looked like some fine homes by Lennar.”
Lennar (NYSE:LEN) is a U.S.-based homebuilder engaged in the construction and sale of single-family homes, residential land development, and the management of multifamily rental properties. For the first quarter of 2025, the company expects new orders to range between 17,500 and 18,000 homes.
It expects deliveries to fall between 17,000 and 17,500 units and the average sales price of homes is projected to be between $410,000 and $415,000. Moreover, Lennar (NYSE:LEN) forecasts a gross margin percentage on home sales to be between 19.0% and 19.25%. Additionally, the company projects operating earnings from its financial services segment to be between $100 million and $110 million.
