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You need a game plan: Cramer's “Mad Money” Recap (Friday 10/19/18)

There is another hard week of profit ahead, Jim Cramer warned his viewers on Friday Mad Money . If a…

There is another hard week of profit ahead, Jim Cramer warned his viewers on Friday Mad Money . If a company has any ties to the Federal Reserve or China, look up, warn Cramer, because this market sometimes also boils the best result.

Cramers play schedule starts Monday with revenue from Kimberly-Clark (KMB) and Hasbro (HAS). Cramer said that Kimberly-Clark might be able to extend the profits from Procter & Gamble (PG), but Hasbro can not do this quarter.

On Tuesday there are results from 3M (MMM), Verizon (VZ), United Technologies (UTX), Caterpillar (CAT) and McDonalds (MCD). Cramer was hazy at Verizon and McDonalds, but noted the others who all face China’s risks.

Wednesday, revenues from Boeing (BA), AT & T (T), Microsoft (MSFT) and Visa (V) on. In the bearer, Ford (F) and Advanced Micro Devices (AMD) were the semiconductor machine with heavenly expectations.

For Thursday, the result continues, and Cramer will watch Comcast (CMCSA) and Merck (MRK), two of his favorites, along with Amazon (AMZN) and Alphabet (GOOGL), which has become too difficult to call. Intel (INTC) also reports and Cramer said that is not difficult to call: It’s likely to be bad.

Finally, Colgate-Palmolive (CL) is running the week, but unlike Kimberly-Clark Cramer, Colgate expects the loss of market share.

The Cramer and AAP team participate in Schlumberger (SLB) mixed quarterly results. Find out what they tell their members in the investment club and enter the conversation with a free subscription to Action Alerts PLUS.

A message to Fed

In its “No-Huddle Offense” segment, Cramer Federal Reserve just did not understand digitization. Every year, Cramer visits Silicon Valley, and every year he comes away with two thoughts. Firstly, he is extremely proud of the innovation that the valley produces, but then he is also concerned about all the people who will be endured because of it.

While recent work reports show labor shortage in many blue-collar jobs, what they do not show is the slow, subtle shift of many white collar jobs thanks to automation and technology. Cramer said that these workers do not easily get into the jobs we need more, but gradually over time they will be retrained and put back to work elsewhere in our economy.

Therefore, Cramer said that Fed chair Jay Powell just needs to do his homework and see what really happens to our economy. The technology helps keep inflation in control more than ever before, and that is something that does not appear in the work reports.

Cramer has more on how digitization keeps inflation in control. Get more of his insights with a free subscription for Real Money.

Decision-making: PayPal

For its Executive Decision Segment, Cramer spoke with John Rainey, CFO for PayPal (PYPL), the online payment processor with shares up 9.4% the day after another strengthened earnings release. 1

9659002] Rainey said this was a record quarter for user development, with over 30 million new, new, active customers who joined their platform. Overall, PayPal and Venmo have 250 million customers worldwide.

It was a little more than a year ago when investors wondered how PayPal would go after eBay split (EBAY). Rainey said that their non-eBay business grew by 28%, more than eight times faster than the company that was still linked to eBay. PayPal was also able to announce two major partnerships in the quarter with Walmart (WMT) and American Express (AXP).

When asked about Venmo, Rainey said that the social payment platform is on a real inflection point, with one in four customers now using paid parts of the service, including shopping, debit cards and instant withdrawals.

Cramer does his homework

In his “homework segment”, Cramer followed up a few layers that stumped him during earlier exhibitions. He said that Smartsheet (SMAR), the provider of cloud collaboration software, sounds amazing, but Wall Street has been hostile to the growth stocks, as rising inflation is the enemy of growth. Cramer said he would rather go with Atlassian (TEAM), which has a proven track record.

Cramer said licensed collector objector Funko (FNKO) has been a wilder trader and is now 40% from high, but he would still be a buyer for speculation, as the company has a lot to go for its benefit.

Get Spooked About United Rentals

When Fed becomes too aggressive on interest rates, some shares become a proxy for the business cycle, warned Cramer viewers. This is indeed the case with United Rentals (URI), which went 15% Friday and falls below 28% for October, as investors see “slowdown” written over it.

What has the market spooked? Cramer said there was nothing wrong with United Rentals revenue, but the bear saw signs of a slowdown that threatened. United Rentals saw a dip in its rental prices and chose to pause its repurchase program to help pay for the acquisition of BlueLine Rentals. Investors now save that this acquisition was bad, with United Rentals buying at the beginning of the business cycle.

While Cramer said he’s still a believer in the company, it does not matter anymore, because Wall Street sees only bad things on the horizon

Lightning Round

In Lightning Round, Cramer was bullish on GoPro (GPRO) and Marriott International (MAR).

Cramer was crazy at Eli Lilly (LLY), HealthEquity (HQY) and General Mills GIS).

Search for Jim Cramer’s “Mad Money” merchandise recommendations with our exclusive “Mad Money” Stock Screener.

To view replies of Cramer’s video segment, visit the Mad Money page at CNBC .

To sign up for Jim Cramer’s free Booyah! Newsletter with all its latest articles and videos, please click here.

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