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NEW YORK ( TheStreet) -- Dropping oil prices continue to take a toll on equities, Jim Cramer told his Mad Money viewers. Investors need to keep an eye on oil futures to get a sense of where the market will move. With that in mind, here's what Cramer will be watching next week.
On Monday Honeywell (HON) provides its 2015 outlook. If the outlook is good, but the stock goes lower due to gas prices, it’s a buying opportunity, Cramer said. VeriFone (PAY) also reports after the close.
If shares of Darden Restaurants (DRI) get pushed lower on Monday, investors should use it as a buying opportunity ahead of its earnings report on Tuesday morning. 3M (MMM) also provides is 2015 outlook, but since the stock is up so much investors should do “more listening than buying,” Cramer advised.
FedEx (FDX) reports earnings on Wednesday and the conference call is a “must listen to” for investors who want a pulse on the global market, he explained. Joy Global’s (JOY) conference all is also a good tell on how the Chinese economy is doing. Oracle (ORCL) also reports earnings.
On Friday, Finish Line (FINL) and CarMax (KMX) report earnings, both of which should be bought on a pullback. He likes KMX near $54. Paychex (PAYX) reports, too, and and its conference call will shed some light on the hiring situation in the U.S. BlackBerry (BBRY) also reports earnings, but he is not a buyer.
The bottom line: Most of these companies are a buy ahead of earnings or analyst meetings. However, they need to have deeper pullbacks first, which can occur due broad-based selling related to declining oil prices, Cramer said.
Off the Charts
In his "Off the Charts" segment, Cramer drilled down on crude oil using Carolyn Boroden’s technical analysis.
Cramer said Boroden thinks there isn’t significant support until $50 to $52 per barrel. Since the rallies have been so short-lived, it means there are likely more declines in store. However, with oil prices near $57 per barrel, investors may be relieved to hear that another potential support level is at $55.67, Cramer said.
Based on Boroden’s work with timing, this bounce could come between next Tuesday and next Thursday. Unfortunately, however, any bounce is likely to be short-lived, as were the others.
If oil prices can rally more than $6.13 per barrel, a sustainable bounce could be in store for the commodity, as it may signal that an intermediate bottom has been put in, Cramer said.
The bottom line: Oil prices are locked in a steady downtrend, but support may just be around the corner. Investors should view any bounce as temporary unless it can make a series of higher highs and higher lows. Anything short of a $6.13 rally in crude prices and the commodity is likely headed even lower.