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This week saw a surprise election and a wholesale shift in the stock market, Jim Cramer announced to his Mad Money viewers Friday. Now that Donald Trump is in charge, there's a whole new set of stocks that will matter for next week's game plan.
Cramer explained that the markets had been betting on a Clinton win this week, but with Trump -- who favors lower taxes, fewer regulations and lots more building of roads and bridges -- the materials and bank stocks are hot and the tech stocks are not.
Cramer's week starts on Monday with Zoe's Kitchen (ZOES) , the first restaurant chain to tell us whether the pre-election gloom has indeed lifted.
Wednesday brings earnings from Home Depot rival Lowe's (LOW) , along with Target (TGT) and Cisco Systems (CSCO) , an Action Alerts PLUS holding. Cramer was bullish on Lowe's, but not on Target, and wanted to hear what Cisco has to say given the new political climate.
None of the retail earnings will matter, Cramer said, only the commentary on the outlook. If it's bullish, stocks will roar, if it's conservative, look out below. As for Salesforce, that's another wait-and-see situation as the market has turned against tech for the moment.
Finally on Friday, earnings from Foot Locker (FL) , a stock Cramer said can be bought on any market weakness.
Jim Cramer and Jack Mohr are buying more shares of Newell Brands (NWL) . Find out more with a free trial membership to Action Alerts PLUS investment club.
Oil Industry Under Trump
Under a Trump presidency, the banks and the drug stocks can expect a wave of deregulation, Cramer told viewers, but so too will the oil industry, which makes stocks like EOG Resources (EOG) one of the best buys in the group.
EOG is the nation's largest on-shore oil producer, Cramer explained, and has premium acreage in all of the hottest areas, including the Eagle Ford, Bakken and Permian Basin. But EOG's biggest claim to fame is its production growth, which the company now expects to increase between 15% and 25% a year, up from its earlier forecast of 10% to 20% a year.
This increased output is what helped boost the stock 60% in 2016, as the company has been making opportunistic acquisitions to bolster its reserves.
But investors must use caution, Cramer warned, as EOG is a true growth stock, which means it's expensive by this year's numbers, as investors are instead betting on the company's outlook two, three and even five years in advance.
That makes it more risky than non-growth stocks, but a wave of deregulation could bolster numbers even further. Cramer said he likes the risk-reward profile.
Jim Cramer and Jack Mohr are buying more Arconic (ARNC) . Find out why and what they say about financials, industrial and health-care stocks with a free trial membership to the Action Alerts PLUS investment club.