원문 보기
My mission is simple. Help you earn. ii, I'm Kramer. Welcome to "Mad Money". Welcome to Kramer's America. I'll be one of your friends who's just trying to help you make money. My job is not only to entertain, but also to teach and educate. So call me at 1800 743 CBC or tweet at Jim Cramer. Is this market really as simple as it seems?
The number of COVID cases is increasing. Well, then buy the Kramer CO9 index. Stocks that rise when the pandemic rages. It works like magic. Can this market really be so clear-cut? Can he really be that stupid? To borrow a phrase from that masterpiece of English literature: it's like "Spinal Tap." It's a fine line between sensible and senseless.
After a volatile day, when the Dow rose only 300 points, the S&P added 1.1% and the NASDAQ added 1.09%. The short answer is yes. It really is that simple. When the state of Texas was forced to suspend its reopening plan due to a record number of COVID infections, a major headline appeared that had only a negative connotation for the US economy.
Suddenly, stocks of work- from-home companies were back in fashion and took over the entire market. It seems the virus didn't get the message that Texas shouldn't be touched. Many of today's winners were the usual suspects who benefit from the pandemic. But some new companies have also joined the movement.
Oil due to a slight increase in the price of crude oil, and banks, although this was, of course , ephemeral, given the bad news after the close of trading. Stay away from banks. OK. Anyway, before we get into the details, how the hell can this market rise on truly terrible news? We have a terrible outbreak in the " sun belt" across the country.
Yesterday we broke a new record for the number of COVID cases. The virus is once again in exponential growth mode. The human toll could be enormous. There are also financial costs, of course, not the same as human lives, but we know that the stock market is focused on money. From a financial perspective, if a state as large as Texas cannot fully reopen, doesn't that mean the market needs to play back some of its recent gains?
As the outbreak sweeps across the South and Southwest, shouldn't we become more pessimistic? I mean, Disney just announced that it is postponing the opening of Disneyland because it is still waiting for health guidelines from the state of California. Is n't that terrible? Especially since it's a large-cap Dow stock.
So why the hell is the market up today? Shouldn't the indices be falling? Don't rush . This is what I've been trying to explain to you for months. The truth is , we've been through this before, and we know that many stocks stand to benefit from the resurgence of the stay- at-home economy. There are 100 companies in Cramer's COVID-19 Index .
I used to call it the "Cramer 100, " but then you asked: how many stocks are in the "Cramer 100"? Well, there are 100 of them. Whatever the case , together these stocks are now worth 12.2 trillion. Oh, that's up from 11 trillion when we made this list back in April. The entire S&P 500 index is only $25.2 trillion.
This index takes money away from all other stocks that are hurt by the economy. I mean, look at this. This is Cramer's COVID-19 Stock Index. And this is the stock market. You want to own this. That's what everyone tells you, right? People come on TV and say you have to own this. Hey, I do n't know. This shows the best results.
Add to that today's rally in banks, fueled by regulatory easing, which will likely roll back tomorrow, along with the positive momentum in oil, which will probably also reverse tomorrow. And this is already much more than half of the market. However , these are mostly COVID-related promotions. So, let's look at why they work on days like today so you understand and stop buying " cash" stocks where you lose all $1,200 you received from the government.
OK. If I signed this, would you do it? If I were the one who signed, think about it. OK. First, there are a number of companies that directly make more money during a serious outbreak. Today we heard from McCormick, a spice manufacturer, as well as my favorite Franks. By the way, you can add this to anything.
And French's. I once got a great discount on French's when I was at a Walmart in Louisiana and the results were extraordinary. They earned $1.47 per share. Wall Street expected just $1.13. A simple story. When you cook at home, you need spices and seasonings. I cook at home every night. I fill everything with this because I hate how bad I cook.
And social distancing means many of us are cooking at home. I hate this. But I leave the dishes piling up until the end of the week. No one yells at me. This is great. OK. This isn't just the inventory build-up they saw at the beginning of the quarter. But Corbin notes that they, quote, "saw strong real consumption growth during the quarter, which represents a radical change in behavior, not just a one-time spike.
The consumer numbers were so fantastic that they easily offset the loss of McCormick's restaurant business." While management clearly didn't want to brag about the pandemic's profits, I don't mind saying it. McCormick is a winner in a world where COVID is raging. The same goes for Clorox. There it is , man.
Don't even try to take it from my cold dead hands. This is usually said about weapons. You won't find anything better than bleach to kill this virus. Every time we get bad numbers on COVID, Clorox stock goes up. Lucy, I have this. So if someone tries to take mine, that's crazy. I'll find out if you take it, I can see it.
Okay. A failed discovery in Texas means another day where you'll have trouble finding it. I search for Clorox disinfectant wipes on Amazon every day. I check it every day, and you know exactly what it says because you check it too. Currently out of stock. We don't know when or if this product will be available again.
Who has seen this? Amazon is everything. They will be even harder to find due to major outbreaks in Texas, Florida, Arizona, California. Besides, the safest place to have fun now is outside. And what does that mean? This means picnics. What do picnics mean? This means Kingsford. What else? E- commerce stocks are rising because the internet is the only place to shop during the lockdown.
People are buying on Etsy, small business owners are going to wix.com, Twilio, Shopify, and now Facebook with their great shops initiative, but they just lost Verizon because of politics. Well, guys. Then the next component of the COVID index is stocks of companies that are working from home. This includes all kinds of cybersecurity solutions.
I don't want to bother you, but I have to. Crowd Strike, Zscaler, they're Zoom, shock to buyers, right? Ring Central, how can I help? And cloud kings like Salesforce.com and, yes, Splunk. Nvidia chips power the data centers that make the cloud possible. How I love Nvidia. And last night he was just coughing until he was tearing up .
Fourth, mega- cap technology stocks. It took them some time to get going today. But hey, Amazon, Apple, Microsoft, Alphabet—they all work here. And Wedbush just set a target market capitalization for Apple of $2 trillion. I say, what about three trillion? What about four trillion? Maybe five trillion.
I mean, come on, guys, try to tone it down a bit . Facebook is now an e-commerce tool for small businesses. Google advertising seems to have hit rock bottom. Microsoft has a huge cloud business. Amazon. Amazon. And yet, even with all these COVID-era winners , how the hell can the market grow when the economy is under so much threat from this new outbreak?
Are n't we a service economy, and aren't all these services related to travel, leisure, entertainment, aerospace —aren't they in big trouble? Frankly , under normal circumstances, where we just let the economy take its course, the stock market would have collapsed today. But the Federal Reserve is determined to minimize the number of bankruptcies .
Think about it this way . If a company that was doing well before the pandemic is now in trouble, expect it to be rescued. This will not save businesses that were already on the verge of collapse. But large companies suffering only because of the virus will probably be fine. Airlines were questioning this even before COVID hit.
The Fed and the Treasury Department made sure they survived. Although I wouldn't own their common stock, folks. I know you have fun with them, but I… I like Southwest. If we see hotels approaching insolvency, the good ones will be bailed out by either our elected officials or the Fed. Meanwhile, we received another full month of extended unemployment insurance.
If you lose your job, the government gives you an extra $600 a week. This is a huge amount. That's why poverty rates actually declined with the onset of the recession. The biggest recession of our lifetime. And the poverty level is falling. If Congress is smart, they will continue these payments now that we are seeing record numbers of COVID infections again.
I know that the Republican leadership is resisting a new stimulus package, but if I were in their shoes to ensure the re-election of a Republican president, I would extend these payments until November 2nd. Am I saying this is all a setup? No. But the winners of the COVID era make up a huge share of the stock market.
They make up almost half of the S&P 500 index. And the losers of the COVID era were saved the last time we had a big outbreak. Add in some good news about oil, and that was enough to point us in the right direction . Let me summarize, okay? I'm not necessarily saying that bad news is good news, and I'm not saying that you shouldn't take profits.
You know how I feel about making a profit. If Texas had done a better job of reopening, perhaps the market would have fallen today, led by the Kramer CO 19 index, all hundreds of them. This would be a "don't mess with Texas" move. Instead, we got a “ maskless in Texas” rotation to benefit COVID winners.
And Wall Street is confident that most of those who lost will get help anywa . together with them.
Comments 0