Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday February 3.
With the Dow plunging 326 points on Monday, it looks like stocks are headed straight down. Cramer enumerated reasons to expect a general decline.
1. Fear of another bad employment number on Friday
2. Even recession stocks are declining.
3. Momentum stocks are the only stocks rising, but that may be due to hype.
4. Retail is poor. Weather is inclement, and mall shopping is in decline.
5. Aerospace was a strong sector, but even that is slowing down.
6. People are nervous that there may be another government shutdown or debt ceiling debate.
7. While Janet Yellin may turn out to be a great Fed Chief, the transition comes at a time of great uncertainty.
8. Emerging markets are in a severe downturn.
9. Commodities are collapsing.
10. Earnings reports matter less and less.
Cramer took some calls:
Molina (MOH) is okay, but Wellpoint (WLP) is best-of-breed.
Generac (GNRC) requires huge storms that shut down power to be profitable. It is too risky.
What Will Happen To Boeing (NYSE:BA)? Other stocks mentioned: Whole Foods (NASDAQ:WFM), Lockheed Martin (NYSE:LMT),
Cramer consulted the findings of technical analyst Tim Collins to see where Boeing (BA) is headed. The stock was a top performer in the Dow last year, but it has plummeted 15% so far this year, even though it reported a decent quarter with conservative guidance. While BA's fundamentals and long-term growth story are strong, the chart doesn't bode well. Tim Collins noted the stock tends to gap up and gap down. It seems to be a downward trend, and even though its daily chart shows it is in oversold territory, it could go even lower; if it drops below $122, it could be in free fall. Both Cramer and Collins think that if it drops to $112.50, it could represent a buying opportunity. Cramer would buy the stock on the way down.
Cramer took some calls:
Whole Foods (WFM) is not a stock that will soar in the next few days, but it has a great long-term story.
Lockheed Martin (LMT) reported a decent quarter, but Cramer would not buy it until it drops far enough to yield 4%.
CFO Interview: Jack Hartung, Chipotle Mexican Grill (NYSE:CMG)
Chipotle Mexican Grill (CMG) reported a blowout quarter, with a 9.3% growth in same store sales when the street was expecting only 6%. The company increased its store count by 13%. CFO Jack Hartung discussed CMG's successful business model and how the company can pay more for quality food, charge slightly higher prices and still make a significant profit. Now that many consumers care about sustainability and where their food comes from, the trend toward places like CMG should continue to be strong.
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