Cramer’s Crazy Money Recap: Amazon, AMD, FedEx
On the stock market, words are sometimes more important than deeds, Jim Cramer told his Mad Money viewers on Friday. This is how the Federal Reserve manages to curb inflation simply by talking about raising interest rates. Between the Fed and seasonal weakness by the July 4 holiday, Cramer said we’re going to have a tough week next week.
Cramer’s game plan for next week begins with more Fed-Speak. St. Louis Fed Chairman James Bullard will speak on Monday, followed by Fed Chairman Jay Powell on Tuesday. These dueling comments will likely continue to put pressure on oil, industrials and cyclics, with technology being the primary beneficiary. Cramer suggested buying an Amazon (AMZN) – Get a report, Nvidia (NVDA) – Get a report or advanced micro-devices (AMD) – Get a report on any weakness.
The gains continue on Wednesday with Winnebago (WGO) – Get a report and KB Home (KBH) – Get a report. Winnebago will have good results, but no one seems to care. If KB Home is strong, Cramer suggested buying Lennar (LEN.B) – Get a report.
Thursday we will hear from Accenture (ACN) – Get a report, Nike (NKE) – Get a report and FedEx (FDX) – Get a report. Cramer said FedEx may not be able to keep up the momentum and that Nike is dependent on growth in China. He was optimistic about Accenture.
Finally, on Friday, we close the week with Paychex (PAYX) – Get a report, which could be a buy if touched before it signals. Carmax (KMX) – Get a report will also provide an update on the used car red market.
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When it comes to the Fed, Wall Street has always been afraid of its shadow. That’s why stocks sold at the mere mention of interest rate hikes in at least a year from now. But while the impulse to respond is strong when the sale begins, Cramer told viewers to sit down, relax, and do nothing. That’s because historically the last week of June has been horrible for stocks, and there will be even more fallout from the Fed earlier this week.
But that doesn’t mean there is nothing to buy. Cramer said he’s always bullish on the technology, and particularly on Amazon, which is gearing up for its annual Prime Day shopping vacation. If the urge to buy is too strong and the market is down, Cramer blessed Amazon buying in that weakness so you are ready for the stock rally after July 4.
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The impact of the KRG
Hyper-growing stocks are starting to show signs of life again, but Cramer warned viewers not to expect them to return to the speculative madness of 2020. That’s because last year, many of these actions were propelled by a virtuous circle created almost unique – handed over by the CEO of ARK Invest, Cathie Wood.
ARK Invest ETFs have been incredibly popular over the past year, Cramer explained. As investors poured money into KRG funds, Wood bought more of his favorite stocks, which drove them higher and, in turn, prompted investors to pour in even more. money in his funds.
But as the economy began to reopen, Wood lost its firepower and ARK’s Innovation ETF (ARKK) – Get a report is now down 5% for the year, compared to the gains of the S&P 500 and the Nasdaq. In fact, ARK had releases in May, its firsts since 2019.
With Wood and ARK Invest no longer supporting growth stocks, it will be much more difficult for them to climb. That makes their recent gains encouraging, but Cramer said it was still too early to tell if they had any stamina.
Out of band
In his “Off The Tape” segment, Cramer spoke to Ryan Petersen, founder and CEO of privately-held Flexport, a company that tries to solve ocean freight arrears with smart technology. Flexport came in at number 41 on this year’s CNBC Disruptor 50 list.
Petersen explained that the problem with global shipping right now is that there is simply no more space on the ships that are sailing. However, Flexport’s artificial intelligence software analyzed data from 400,000 shipping containers and determined that most are only 70% full. This means that by intelligently connecting shippers to containers, capacity can be increased.
Flexport also gives its customers a better idea of when items are likely to arrive, so they can make smarter shipping decisions. He said it was not enough to get back to “normal”, which we need to bring down to a level below normal until the backlogs are cleared.
When asked what “normal” means, Petersen admitted that between COVID and trade wars, normal will be difficult to define for the foreseeable future.
Am I Diverse?
Closing the week, Cramer performed “Am I Diversified,” speaking with callers and responding to tweets sent via Twitter to @JimCramer to see if investor portfolios have what it takes for today’s tough markets. The first portfolio included Qorvo (QRVO) – Get a report, Costco (COST) – Get a report, John Deere (OF) – Get a report, chevron (CVX) – Get a report and Amgen (AMGN) – Get a report. Cramer said this portfolio is well diversified with large companies.
Top holdings in the second portfolio included IBM (IBM) – Get a report, Fisker (RSF) – Get a report, Freeport-McMoRan (FCX) – Get a report, Apple (AAPL) – Get a report and Alibaba (BABA) – Get a report. Cramer said Apple and IBM are no longer in competition, so this portfolio is also diverse.
The third portfolio had Applied Materials (AMAT) – Get a report, HR (HR) – Get a report, Boot Barn (BOOT) – Get a report, Black stone (BX) – Get a report and generator manufacturer Generac (GNRC) – Get a report as its top five actions. Cramer said there was also no overlap in this portfolio.
The main stocks in the final portfolio were Alibaba (BABA) – Get a report, CSX (CSX) – Get a report, Roblox (RBLX) – Get a report, Maxar (MAXR) – Get a report and drug maker Merck (MRK) – Get a report. Cramer didn’t suggest any changes to this portfolio either.
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