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A version of this program last aired on June 12, 2015.
NEW YORK (TheStreet) -- We're still in the thick of earnings season, Jim Cramer told his Mad Money viewers Friday, and that means staying rigorous and avoiding the minefield of earnings reports heading our way next week.
On Monday, Cramer said, he'll be watching Clorox (CLX), Denny's (DENN) and biotech BioMarin (BMRN). He expects another solid quarter from Clorox and positive news from Denny's with gas prices falling again, but he urged caution with BioMarin, which is already up 50% for the year.
Tuesday starts with economic data out of China, which may provide investors a chance to buy CVS Health (CVS) at a good price, along with Regeneron (REGN), another Cramer fave. Walt Disney (DIS) also reports, and Cramer advised buying that stock on weakness, too.
Next, on Wednesday, it's Ralph Lauren (RL), Jack in the Box (JACK), Tesla Motors (TSLA) and Fitbit (FIT) in the spotlight. Cramer was bullish on Jack in the Box and Fitbit but had reservations about Ralph Lauren, which has been in a funk of late. As for Tesla, Cramer said Tesla is a cult stock -- if you love the car, you're free to buy it.
Earnings on Thursday include Allergan (AGN), a stock Cramer owns for his charitable trust, Action Alerts PLUS, and Molson Coors (TAP). Cramer said he's concerned about Allergan and the high expectations surrounding it, but would be a buyer of Molson on weakness.
Finally, on Friday, the latest non-farm payroll numbers will be released. Cramer said it's a safe bet that since the Federal Reserve held off raising interest rates, this number isn't likely to be a good one. That may afford investors a chance to buy WhiteWave Foods (WWAV), another AAP holding, if the stock gets knocked down on overall market weakness.
Demystifying the Fed
With interest rates having been so low for so long, the stock market is in uncharted waters, Cramer told viewers. That's why he wants to demystify the Federal Reserve and its many powers over the markets and the economy.
When the Fed cuts interest rates, it's trying to ignite the economy. Conversely, when it raises interest rates, it's trying to rein in the economy and ward off inflation. The key to investing, however, is sticking with long-term themes that make money no matter what the Fed is up to.
So how did the markets end up in no man's land? Well, after raising interest rates 17 times between 2003 and 2006, the Fed failed to adequately consider what those increases were doing to the housing market and how inextricably linked our economy is to housing. After an abrupt about-face, the Fed has since been doing everything it can to reignite our economy by cutting rates to near zero, then by buying bonds to lower rates even further.
Low interest rates affect the stock market in several ways. They stimulate hiring and spur consumer spending, from homes to autos to retail, all of which accounts for nearly two-thirds of our economy. Low rates also allow companies to expand and finance mergers and acquisitions.
So now that the Fed has done its job, the rest of the economy is beginning to take over.