Don’t think too much about Monday’s giant market rally, Jim Cramer told his Mad Money viewers. The stock market had something for everyone, Cramer said, even though many of those things are contradicting each other.
Today’s rally was spurred by the removal of uncertainty, Cramer explained. President Donald Trump is reportedly doing better, while Democratic challenger Joe Biden continues to increase his lead in the polls. This caused many different sectors to rally, even though they typically weren’t trading in tandem.
Ongoing talks about further government stimulus have led to a rise in interest rates. Great for bank stocks. Meanwhile, increased demand has pushed crude oil prices up. Cramer warned viewers to use any force in the oil to sell the oil stock.
Homes and renovations continue to gain strength. That’s why Cramer continued to recommend Home Depot (HD) – Get report, Lowe’s (BASS) – Get report, Best buy (BBY) – Get report, Walmart (WMT) – Get report and Target (TGT) – Get report. He even warmed up at the haunted Bed Bath & Beyond (BBBY) – Get report.
Cramer added that biotech stocks are now trading together, thanks to the proliferation of ETFs, so good news for Regeneron. (RAIN) – Get report it was good news for the entire industry. Finally, Cramer noted that as production resumes, the automotive sector also appears to improve, with car prices at CarMax. (KMX) – Get report and AutoNation (A) – Get report improve.
Cramer and the AAP team are looking into everything from earnings and tariffs to the Federal Reserve. Find out what the members of their investment club are saying and join the conversation with a free trial membership to Action Alerts Plus.
Don’t miss the best of Cramer, every day, with fast and actionable strategies: StreetLightning.
Executive decision: Bristol-Myers Squibb
In his first “Executive Decision” segment, Cramer spoke with Dr. Giovanni Caforio, president and CEO of Bristol-Myers Squibb (BMY) – Get report, the drug maker that announced on Monday the acquisition of MyoKardia to bolster its cardiovascular offerings.
Caforio noted that it has been a year since Bristol acquired Celgene and the combined companies have made “great progress” towards advancing their strategy. MyoKardia’s new drug could treat up to 100,000 patients in the United States alone, and Caforio said Bristol is the perfect company to take the drug through the regulatory process to bring the drug to market next year.
Bristol Myers remains committed to leading the cardiovascular disease indictment, Caforio said, but also to rewarding its shareholders. Shares in the company have risen 17% over the past year and Caforio added that they continue to have strong financial positions and are reducing debt as they work towards a balanced capital allocation plan.
Executive decision: Slack Technologies
For his second “Executive Decision” segment, Cramer spoke to Stewart Butterfield, co-founder and CEO of Slack Technologies (WORK) – Get report, the collaboration software provider that has fallen behind many other cloud companies in recent months.
Butterfield admitted that after six years it is still a little difficult to explain Slack to those unfamiliar with the platform. He said Slack moves corporate messaging out of the inbox and into channels where everyone can collaborate and catch up on what’s going on. It’s time to work, he said, and customers love their product.
Customer loyalty and enthusiasm have propelled Slack through several years of viral growth, Butterfield added, but now the company faces new competition from Microsoft. (MSFT) – Get report and its collaboration offering, Teams.
Slack has brought anti-competitive charges against Microsoft regarding Teams, charges the European Commission is now investigating.
On Real money, Cramer talks about the companies and CEOs he knows best. Get more from his insights with a free trial subscription to Real Money.
Search Jim Cramer’s “Mad Money” trading advice using our exclusive “Mad Money” Stock Screener.
To watch Cramer’s video segment replays, visit the Mad Money page on CNBC.
To sign up for Jim Cramer’s free Booyah! newsletter with all his latest articles and videos please click here.
At the time of publication, Cramer’s Action Alerts PLUS had a position in BMY, MSFT.