Cramer’s Mad Money 10/8 Summary: AMC, BlackRock, Delta, and Domino’s
When in doubt, do nothing. That was Jim Kramer’s advice to his Mad Money viewers on Friday. Cramer explained that we’re at the end of a weak moment for stocks, and that means investors shouldn’t try to be a champ when earnings season starts next week.
Kramer’s game plan next week kicked off Monday with the weekend’s box office gross for “No Time to Die,” the latest James Bond movie. If ticket sales go up, expect AMC Entertainment (AMC) – Get the AMC Entertainment Holdings, Inc. report. Class A to be so.
Bob Lange and Chris Versace explain Action Alerts PLUS Why did they leave their positions at American Eagle Outfitters? (AEO) – Get the American Eagle Outfitters, Inc. report. and Facebook (FB) – Get Facebook, Inc. Class A Report This week, what do they think of the jobs data and what they expect from bank earnings next week. Check out their latest trading strategies and investment ideas.
Wednesday marks the start of earnings season with JPMorgan Chase (JPM) – Get a JPMorgan Chase & Co. report. (JPM), Black stone (BLK) – Get a BlackRock, Inc. report. and Delta Airlines (from) – Get a Delta Air Lines, Inc. report. reports. Cramer felt JPMorgan was up ahead of earnings, but was bullish on BlackRock and Delta.
Thursday will see a large number of bank profits, including Morgan Stanley (the Lady) – Get the Morgan Stanley (MS) report, Citigroup (NS) – Get the Citigroup Inc. report., American bank (buck) – Get a Bank of America Corp . report Wells Fargo (WFC) – Get a Wells Fargo & Company report, along with creamer favorite Domino’s Pizza (DPZ) – Get a Domino’s Pizza, Inc. report. and Walgreens Boots Alliance (WBA) – Get the Walgreens Boots Alliance Inc تقرير report. Cramer loved all things finance, and Domino’s, but he expected Walgreens to be terrible.
Finally, on Friday, we’ll hear from Goldman Sachs (p) – Get a Goldman Sachs Group, Inc. report. (GS)Cramer warns Stocks of a higher hunt, and JBHunt (JBH) , the third largest trucking company in our country, which should be able to shed some light on the shortage of truck drivers.
In an exclusive interview, Kramer returned with Ryan Petersen, founder and CEO of privately owned Flexport, for an update on the global shipping industry.
Petersen said there are currently 51 ships anchored in US ports waiting to unload their cargo. And although this number is lower than the peak of over 70 a few weeks ago, it is not zero, as it should be.
Many people imagine a global supply chain full of technology and highly efficient. But Petersen noted that it relies largely on old-school ways of working. And while Flexport has technology that can dramatically improve efficiency, we’re faced with a complex systemic problem that’s more than one company can solve.
What is required to solve the problem? Petersen said infrastructure improvements will certainly help in the long run, but what we need to worry about now is the upcoming holiday season, which is only 78 days away. Retailers need their merchandise on store shelves and not hung in containers.
When asked why ships could only use East Coast ports such as Philadelphia, Baltimore or Richmond, Petersen noted that long voyages would actually be less efficient even than delayed discharge. In addition, many of the ships are too large to accommodate the Panama Canal.
off the charts
In the Off the Charts section, Cramer turns back to his colleague Larry Williams to see what the market’s seasonal patterns have in store next. Viewers may remember that Williams accurately predicted the September blackout, which occurs like clockwork every year from mid-September to October.
According to Williams’ analysis, the market should be preparing for a rally at the end of October. Williams noted that this pattern was seen consistently almost every year from 1923 through 2020. Analysis of market cycle forecasts confirmed that a rally is likely.
So when should investors buy? According to Williams, buying on November 1 and holding it for six days is a pattern that has worked in 30 of the past 31 years, while producing some of the biggest gains.
In the “Homework” segment, Kramer tracks down the stocks that have fascinated him during previous performances. He said that element solutions (ESI) – Get the Element Solutions, Inc. report., formerly known as Platform Specialty Products, is a specialty chemicals manufacturer whose business has improved a lot in recent years.
Platform Specialty started as a consolidated company, a company designed to make a lot of acquisitions and profit from synergies. But in recent years, Cramer said, the company has given up some areas to focus on electronics and industrial chemicals as well as those in the oil and automobile industry. The result was improved organic growth.
Kramer said he’s also impressed with how Element Solutions cleans up its balance sheet and even creates profits for shareholders. He was blessed with owning this forgotten company.
Infrastructure bill tightening
In his “No Huddle Offense” segment, Cramer praised Commerce Secretary Gina Raimondo for her efforts to secure a $52 billion in infrastructure bill to build new semiconductor foundries.
The United States was once a world leader in semiconductor manufacturing, but after decades of outsourcing, our country has woefully declined and is now beholden to Taiwan, Malaysia, and other countries. Kramer said the auto industry has already lost billions from the semiconductor shortage, which is a matter of national security.
Kramer said Raimondo understands the severity of this problem, which is why she is striving to get the money we need to solve this problem and make the United States a leader again.
Here’s what Kramer had to say about some of the shares callers gave during Friday night’s “Mad Money Lightning Tour”:
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