What does more mean for the stock market, thaw in trade wars with China or weakening of economic data? Jim Cramer told his Mad Money viewers Thursday that investors do not have to choose. Today we both got and there was a one-two blow to the bears.
Thursday's rally was tracked by the ISM Manufacturing Index, which showed that our economy is actually starting to cool. Cramer said that this report could give the Federal Reserve the ammunition it needs to take a break from interest rate hikes and wait to see what's next. Fed is worried about inflation, but Cramer said with prices that fall for oil, wood, metal and other goods, inflation can only take care of itself.
Then it's the president's tweet announcing that China and the United States had their first "good" talk about dealing with what seems like months. This news was good news for Starbucks (SBUX), who said China is still its fastest growing market, along with a number of other companies and sectors operating in China.
Even the semiconductors could see some boost despite
Finally, the elephant in space: Apple (AAPL), the Action Alerts PLUS holding reported a strong quarter, but investors are worried about it anyway.
Cramer said that Apple's ecosystem remains strong and stocks were up in the quarter. Therefore, he is not selling, although there is short-term weakness on Friday.
The Cramer and AAP team keeps track of revenue reports and market volatility. Find out what they tell their members of the investment club and get in touch with a free trial subscription to Action Alerts PLUS.
Big-Cap Drug Companies Turn Toxic
The major pharma shares used to represent security in times of weakness, Cramer told the viewers, but it is no longer true. While many drug rallies rallied today, this rally can be short-lived.
Cramer said he used to be a big fan of Allergan (AGN), but even after a beat-and-raise quarter, analysts ask questions about whether CEO Brent Saunders brings the value fast enough. Shares in AbbVie (ABBV) have been broken as investors have been concerned about increased competition. Gilead Sciences (GILD) has tried to get around, but few, including Cramer, see it coming soon.
Cramer said he does not see any resiliency in shares like Bristol-Myers Squibb (BMY), and whose shares of Baxter International (BAX) can pick 1
Cramer says it's worth remembering why the FANG shares have been so good and how they return. Get more of his insight with a free trial of Real Money.
Executive Decision: GW Pharmaceuticals
In an exclusive Executive Decision segment, Cramer spoke with Justin Gover, CEO of GW Pharmaceuticals (GWPH), a share that is up 30% for the year, including 7% on Thursday on news that both the FDA and the DEA will allow the company to sell the epileptic drug in the United States
Gover said that GW has been working for the last 20 years on this drug and today marks a major milestone for their company. They hope that their substance will have a meaningful impact on the patient's life.
Gover explained that the FDA puts a very high bar when it comes to the safety and efficacy of the drugs they approve. GW has worked tirelessly to provide the real science that shows that your substance is worthy of that approval.
GW has no plans to slow down. Gover said that they are working on further indications of their current drugs, and that studies in place to treat autism, pain and oncology. "There is still a lot of research to be done," he concluded.
Unlike many other cannabis companies, Cramer GW said a true company with real science and real earnings.
Management Decision: Proofpoint
In its second Executive Decision segment, Cramer joined Gary Steele, Chairman and Chief Executive Officer of the Security Company Proofpoint (PFPT), which saw its shares fall 15% last week after reporting a 12 -cents-a-share income stroke. Shares could rally 2.8% in Thursday's season.
Steele said cyber security is still a good business, and the threat of the landscape becomes just tougher for most companies. He said that Proofpoint's operations are driven by the cloud and also international demand. Labor markets remain tight, he said, and they do not find good people as soon as they want.
When asked about Microsoft (MSFT) competition, Steele says customers want a comprehensive world-class security solution. As customers move to Microsoft, with Office 365 products, it has just been a catalyst for Proofpoint.
Even the Securities and Exchange Commission begins to take cyber security seriously, said Steele, as they warned companies to take a serious look at their infrastructure and treat security as a priority.
Executive Decision: Federal Realty Investment Trust
For its final Executive Decision, Cramer checked in with Don Wood, President and CEO of Federal Realty (FRT), the REIT Shopping Center, which has just posted its best quarter ever.
Wood admitted that bond yields increase, making them more competitive for Federal Real Estate's dividend of 3.2%. However, he added, the Federal has no bonds, and it's capital appreciation, as well as a long history of delivering to shareholders. Federal Realty is a very special REIT in this regard, he added.
When asked about their business, Wood explained that consumers are ill on driving and sick of traffic. That is why Federal's malls, some of which now include offices, are perfect for living, working and playing without having to drive. The company has just added two office buildings for Splunk employees (SPLK), and Wood said that the feedback so far has been very good.
Finally, Wood asked for every single room in its centers an opportunity to grow
In the line-up Cramer was bullish on Covanta (CVA), Cypress Semiconductor (CY), Colgate-Palmolive (CL ), Estee Lauder (EL), Blackstone Group (BX) and Match Group (MTCH).
Cramer was bearish on Biogen Idec, Carrizo Oil & Gas (CRZO), Allstate (ALL) and Ubiquiti Networks (UBNT).
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