In this article, we will look at the stocks Jim Cramer discussed as he said that the Iran peace negotiations could trigger an oil glut, cool inflation, and pull interest rates down. The host of CNBC’s Mad Money said on Thursday that with a relatively quiet earnings calendar next week, investors are likely to pay much closer attention to a series of important economic reports.
Monday, we could come in and find out the White House has finally closed the deal with the Iranians… I’m expecting shockingly lower oil prices because of this new excess if the peace holds. Here’s my thesis: The decline in oil could take down the price at the pump to ever-lower levels, and eventually, much cheaper gas will convince the Fed officials that it would be insane to raise interest rates. That’s why I believe the Fed’s next move is more likely to be a rate cut than a rate hike. I know, extremely contrarian view, but remember, the majority is not always right.
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Cramer noted that new home sales data will be released on Wednesday and tied the report to his expectation that the Fed will ultimately cut rates. He said the outcome of the report is difficult to predict and added that policymakers have so far looked past signs of weakness in the housing market. However, he believes that stance could change if oil prices continue to decline. He also highlighted Thursday’s release of the core PCE Deflator and mentioned that it was the preferred inflation gauge under the previous Federal Reserve chairman.
One of the many things I liked about Kevin Warsh’s press conference yesterday, and I really did like it, was how he’s no longer going to tolerate the kind of old data that, to paraphrase, seems more anecdotal than empirical. I’ve been really against the way the Fed collects its data for years. It’s old by the time they read it, and it’s often poorly reported. Warsh wants to change that. I think it’ll be a big improvement over what the heck this thing was.
Our Methodology
For this article, we compiled a list of 28 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on June 18. We listed the stocks in the order that Cramer mentioned them.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
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28. McGraw Hill, Inc. (NYSE:MH)
McGraw Hill, Inc. (NYSE:MH) was among the stocks Jim Cramer discussed as he said that the Iran peace negotiations could trigger an oil glut, cool inflation, and pull interest rates down. Toward the end of the lightning round, a caller asked if they should buy, sell, or hold the stock. In response, Cramer stated:
It’s [at] $9. I think it could go down a few more bucks. It doesn’t lose money, but it has been AI. And these ones that are AI, you keep trying to catch them, and they are just falling knives, they’re falling cell phones, they’re falling safes, they’re falling manhole covers.
McGraw Hill, Inc. (NYSE:MH) sells printed and digital learning materials and study tools for students, teachers, and professionals. The company reported its earnings on June 11, posting a Q4 non-GAAP EPS of $0.32, outperforming the forecasts by $0.15. Its revenue of $463.72 million beat estimates by $23.8 million but was down about 2% year over year.
