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My mission is simple. Help you make an opportunity "Mad America." Others only to entertain, but also Jim Cramer if you were just looking at closing prices. Looks like a good day, huh? The Dow closed down 45 points. The S&P rose 0.18%. The NASDAQ rose 0.5%. But the truth is that around two o'clock things were looking very bad.
It seemed like a huge collapse was waiting for us. Wall Street was focused only on the negative. We are heading towards the hardest part of the pandemic. Everything will be much worse than feared. Retail sales were very weak. The Fed admitted that it could do little to help. Then we heard very positive talk from Washington about the stimulus package and from Fed Chairman Powell.
And indeed, the stock turned around. The crisis has been averted. I think it's bears again. Bears. They are mistaken. Of course, this is an unpleasant moment, but we are about to cross the Jordan River after wandering in the desert for an eternity, and on the other side is a land flowing with milk and honey.
Meanwhile, you know what? I'm actually excited about all this negativity because it means the stock can continue to rise. As long as there are those who doubt, we can grow. The market grows when bears turn into bulls. So think of the negativity we've seen all morning as fuel. When everyone is positive, that's when it's worth worrying.
Now, however, there is considerable pessimism about this growth. The conventional wisdom is that this growth must be fake because the economy is in dire straits due to a sharp drop in retail sales and a spike in unemployment as states are forced to impose lockdowns. What's worse is that the additional unemployment benefits and eviction moratoriums expire in a couple of weeks.
I know most people have lost faith in Washington. Congress has done nothing for months, although that may soon change. Even without a stimulus package, which suddenly seems much more likely . I think it's a "best of times and worst of times" situation. I know you're tired of this. I constantly refer to Dickens.
This must really annoy you, but it's a Dickensian moment. OK. This isn't "A Christmas Carol," but it's Dickens. These are the best times for the rich, whether companies or individuals. And these are the worst times for small businesses and people living paycheck to paycheck or without any income at all.
Is this good for America? Of course not. We don't want to live in a Dickens novel. But my job is to help you make money in the stock market. And this situation, oddly enough, is absolutely ideal for the market. I do n't think that makes you a speculator like Cal wants you to be. You're just taking advantage of the big gap.
And now that the $900 billion stimulus seems almost a done deal, it will help everyone. Although the unemployed may temporarily remain without benefits until the new aid package takes effect. We're also hearing about direct cash payments, and as you know from last time, that's great for everyone. The benefit is felt throughout the economy, because when you have excess money, you spend it.
This means that more people are renovating their homes and buying real things, as it is difficult to spend money on services because there is nowhere to go. However, people who are barely making ends meet will continue to live like this. Small businesses that need help to stay afloat will not get enough money.
So, in the end, yes, it's true. This is Darwin. The rich get richer, big business gets even bigger, and the rest have to survive somehow. Meanwhile, the Federal Reserve has said it will keep interest rates low until 2023, so you can easily borrow money for a car or buy dividend stocks if you have a good job and savings, but not if you don't.
Fed Chairman Jay Powell has repeatedly emphasized how uncertain and dangerous the situation is. He made it clear that he would not lose sight of the millions who have been left unemployed. And I don't think Congress can afford to ignore that. Jay Powell is showing a humanity we have n't seen from Fed leaders in a long time.
This person understands everything. Fortunately, it seems to have reached Congress as well. Specifically, to Senate Majority Leader Mitch McConnell, who suddenly wanted to pass stimulus legislation to save the seats of two incumbent Republicans in Georgia, who face a runoff in January. Even if you can't trust politicians to do the right thing, you can definitely trust them to look out for their own interests.
Oh, and they want to go home. So, what should you buy in a situation where everyone gets another $600 from Uncle Sam, and those who can afford it can spend it? OK. First thing this morning we learned that Stanley Black&Decker's order book is much better than we thought. This great tool company was forecasting organic growth of 3-5%.
Instead, they expect 10% organic growth. This is a colossal change. Since no analyst expected such figures, we should expect ratings and price targets to be raised tomorrow. Shares are up less than 2% today. This is madness. I think they have potential for growth. Where do these people buy their tools?
At the bakery? No, they buy them at Lowe's. They buy them at Home Depot. If Stanley Black&Decker is showing 10% organic growth, imagine how successful the chain stores that sell their products are. So many of their smaller competitors are disappearing. This is bad for the country. But good for Lowe's and Home Depot stocks.
I think they are worth buying. Second, we won't be able to return to work for months, which means we're in what I call a "hybrid home" mode. Perfect time to own Lululemon stock. They were at our show last night. They told a wonderful story. Lulu will benefit from the reopening of the economy, but right now they're making a fortune selling comfortable clothing online, and those clothes could be perfectly suitable for the office in the hybrid model I'm talking about .
Third, I think you should buy Boeing. We'll hear from their CEO later today. I know he can't talk about new business with China yet , but think with me. These are just my assumptions. Put yourself in the shoes of the people who run the Chinese Communist Party. Let's say Biden extends a helping hand after years of Trump's tough trade policies.
It won't take much . So how will China reciprocate? When we talk about geopolitics, the traditional gesture of goodwill is a massive order for Boeing aircraft, including the 787, 777, and soon their newest 777X, because Boeing's order book supports how many? 2 million jobs. And they are scattered all over the country.
They will do this to reward as many politicians as possible. Of course, you can take another, simpler path—buy the S&P 500, as millions of investors do with their extra $600. Or you can buy Fang. Yes. Facebook, Amazon, Apple, Netflix and Google. These stocks are not dead. Even though I've read obituaries about them in the last 24 hours.
The point is, you can't stand by the Jordan River and say, "Forget about it. I'm going back to the desert." Whether it's fair or not, this is a great time for the stock market. The promised land is right here. We still have to get through the worst of the pandemic, but then we will get vaccinated, and hopefully you will never have to hear about COVID-19 again.
Why wouldn't you want to own stocks at a time like this? A fair question, is n't it? with the hashtag #? Go to madmoney.cnbc.com . Shepard Smith was with you . Thank you for watching CNBC on YouTube.
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