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Stock Market Today With Jim Cramer: Fed Meeting Preview

Jim Cramer discusses expectations from the Fed meeting and how to trade FedEx after earnings.

U.S. stocks rose from their September rout Wednesday ahead of a key policy decision expected from the Federal Reserve.

Jim Cramer and TheStreet Senior Portfolio Analyst Jeff Marks talked about expectations from the Fed meeting and how to trade FedEx post earnings.

What to Expect From the Fed Meeting

The Federal Reserve will conclude its two-day meeting on Wednesday and release a policy statement at 2 p.m. U.S. Eastern. Chairman Jerome Powell will then hold a news conference.

Cramer said the Fed can "create slowness" in hiring so companies don't need as many employees. "Has that been his [Powell's] way? No. ... There's not enough people in the workforce. Meanwhile, Congress wants to make it so there's even more jobs that can't be filled at the cost of a huge amount of money," he said.

"One way to make wages go down and costs go down is to slam the economy. I'm hoping he doesn't do that. That has not been his way. But he will be pressured endlessly by the media to do so," Cramer added.

He also reiterated that it's too early to buy stocks. "We're still interested in these rallies and letting stuff go. ... We bought Disney  (DIS) - Get Walt Disney Company Report [for Action Alerts PLUS] because it should never have been down where it was. And there are [lower-multiple techs] that are going up like Oracle  (ORCL) - Get Oracle Corporation Report and Dell  (DELL) - Get Dell Technologies Inc Class C Report. But it's not a time to pay up knowing that you've got a very bad Fed meeting coming up."

TheStreet Recommends

FedEx Vs. UPS

FedEx  (FDX) - Get FedEx Corporation Report shares fell Wednesday after the delivery giant's first-quarter results missed expectations and prompted downgrades and price-target cuts by analysts at Cowen, Raymond James and JPMorgan.

FedEx also cut its financial outlook as labor shortages caused expenses to soar.

Cramer said United Parcel Service  (UPS) - Get United Parcel Service, Inc. Class B Report is likely to report a better quarter compared with FedEx and expects the company to deliver better margins. 

FedEx "is very disorganized," Cramer said. "There are many other people in this business who have been able to have increasing margins. ... [UPS] will not be as bad as FedEx and therefore with a good buyback and a dividend, I like it. ..." 

Disney and United Parcel Service are key holdings in Jim Cramer's Action Alerts PLUS investing club. Want to be alerted before Cramer adds or removes stocks from the portfolio? Learn more now