Jim Cramer, host of Mad Money, provided insights on Friday about this week’s Federal Reserve meeting, key earnings reports, and the retail sales numbers due to be released. According to Cramer, the market is in a holding pattern at the moment, with investors growing increasingly uneasy. “When the market bides its time, guess what, people tend to get a little nervous,” he remarked.
“I think the Wall Street’s gotten a little too negative frankly, as we get oversold and we’re getting there. But I’ve been warning about stocks going to excessive levels for two weeks now, so I can’t be all that positive until we see a couple days where bond yields actually go lower with the stock market.”
Cramer pointed out that retail sales figures will be released on Tuesday, and although they are coming out just before the Fed’s meeting, they will likely stir significant debate. This is especially true given the unusual timing of Black Friday this year, with a compressed shopping period between Thanksgiving and Christmas. He speculated that the bond market had a rough week, and if retail sales come in cooler than expected, it could provide a much-needed counterbalance, perhaps offering a potential buying opportunity after the Fed meeting.
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Looking ahead to Wednesday, Cramer noted that the Federal Open Market Committee is widely expected to cut interest rates by 25 basis points. While he cautioned that nothing is certain, he emphasized that numerous Fed officials have indicated that a rate reduction is likely. He added:
“Every little signal from the Federal Reserve brings out predictions causing many people to sell good stocks when they are freaked out. You also have people who just can’t let it go, dogs with bones. As soon as we get the Fed rate cut, well, guess what? They’re immediately focused on the next cut. I think this is absurd.”
Cramer clarified that while he does see the Fed as important, he believes investors should not get bogged down by every minor shift in central bank policy. He reminded viewers that the Fed operates based on data, not ideology. He acknowledged that there could be dissent within the Federal Open Market Committee, but he cautioned against making investment decisions solely based on what the Fed might do next.
“Contrary to popular belief, there’s more to investing than monetary policy and I wish everyone knew that. They don’t.”
Moving on to Friday, Cramer highlighted that the personal consumption expenditures (PCE) inflation data would be released, offering the first look at the latest inflation numbers.
“Finally, on Friday, we get our first look at the next set of inflation data, that’s called the personal consumption expenditures number. Remember, my view is that we’ll continue to get endless chatter about what the Fed might do or not. So if this number runs hot, you’re gonna hear a lot of doomsaying, and why do I put it up there then? Well, because maybe it’s a good opportunity to buy something on weakness because other people will be freaked out by what the doomsayers say.”
In summary, Cramer believes we’re entering a seasonally strong period for stocks, though recent performance in some sectors has been underwhelming. He noted that while the Santa Claus rally typically provides a boost toward the end of the year, it’s important to wait for the Fed’s meeting to pass before making any significant moves.
Jim Cramer’s Game Plan for This Week: 8 Stocks in Focus
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For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on December 13. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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Jim Cramer’s Game Plan for This Week: 8 Stocks in Focus
8. Darden Restaurants, Inc. (NYSE:DRI)
Number of Hedge Fund Holders: 28
Cramer commented that Darden Restaurants, Inc. (NYSE:DRI) must attract more customers who are seeking the best value.
“Thursday morning: Well, Darden tells us how it’s doing and I gotta tell you, this one’s still being driven by Olive Garden. I think the market’s actually moved away from the formerly important restaurant chain. Instead, it’s focused on the results of Texas Roadhouse and Brinker, both of which offer great value and are being rewarded with tremendous numbers and then much higher stock prices. I wanna find out if Darden gets the consumers pushing back against high prices. They have to tell us what they’re doing to entice these people who seem to be going elsewhere for casual dining, pretty much for people who want to spend no more than $11 per dinner.”
Darden (NYSE:DRI) owns and operates full-service restaurants in the U.S. and Canada under various brands, Olive Garden and LongHorn Steakhouse among them. In the first quarter of fiscal 2025, the company faced challenges within its Fine Dining segment. Despite a slight 2% increase in revenue, the segment experienced a 6% decline in same-restaurant sales, and profits dropped by 5.3%. During the earnings call for that quarter, management emphasized the company’s intention to price below both its competitors and inflation over time.
They pointed to Olive Garden as a prime example, noting that over the last five years, the brand has maintained pricing 800 basis points below the full-service industry average and 700 basis points below grocery inflation. However, management also acknowledged that there is room for improvement in how the Olive Garden team communicates this value to customers.
7. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 30
Cramer expressed concern about General Mills, Inc. (NYSE:GIS), noting that Robert F. Kennedy Jr.’s focus on healthy eating could threaten a key profit driver for the company.
“We have some big earnings reports on Wednesday, starting with General Mills, which caught an upgrade today thanks to accelerating pet food sales. Actually, I’m more worried about sugar cereal and I say that having interviewed incoming Health and Human Services Secretary-designate Bobby Kennedy (Robert F. Kennedy Jr.) on the floor of the New York Stock Exchange yesterday. I think that his chief objective is not vaccines, it’s healthier eating and he seemed to confirm that yesterday when I spoke with him. If that’s the case, then General Mills could be in trouble because, well, sugared cereal is a major profit generator for the company.”
General Mills (NYSE:GIS) manufactures and markets a wide range of branded consumer foods globally, including cereals, snacks, meal kits, frozen foods, and pet food products. Recently, it found itself navigating the shifting regulatory landscape concerning food dyes, especially in its popular cereal products, as reported by Bloomberg.
As the company looks ahead to the possibility of a new Trump administration, it has proactively engaged with federal regulators about potential changes to food dye regulations. This comes amid mounting scrutiny led by figures such as Robert F. Kennedy Jr., who is known for his stance against synthetic dyes in food. Kennedy, who is poised to lead the Department of Health and Human Services, has called for the removal of artificial dyes, which could impact products like Cheerios, Cocoa Puffs, and Lucky Charms. The company is preparing for potential challenges, understanding that such scrutiny could significantly affect its operations.
General Mills (NYSE:GIS) has also been focused on innovation. Earlier in the year, the company increased its innovation efforts by launching 40% more major products than it did in the prior year. This push included a strong performance in the cereal category, where General Mills introduced the five largest new products in the U.S. market.
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