Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday, November 30.
A big theme this week for Mad Money has been the pro-business wave coming to Washington, D.C. Wednesday's installment from Jim Cramer was no different.
This time, the Mad Money host focused on two key cabinet appointments from President-elect Donald Trump - Steven Mnuchin for Treasury secretary and Wilbur Ross for Commerce secretary.
Cramer said the picks "sent a huge message" with regard to what's next for the markets and the economy. With Trump's picks, "those who are pro business and pro growth are getting jobs in this administration."
First is Ross. Trump has made a pledge to revive industries like steel, coal and textiles, and Ross will be in a position to "figure that out."
Then there's Mnuchin. Cramer said the Treasury pick is "as savvy about the markets as they come," as well as being a top-notch businessman (he's worked with Goldman Sachs (NYSE:GS)) and "a fantastic investor."
Cramer also liked that the two expected appointees are level-headed with their approach. For instance, they haven't targeted Fed Chair Janet Yellen. And they haven't made a big push for tariffs on overseas products.
"These picks emphasize growing the pie, so everyone does better," Cramer said.
"Is this good for stocks? No," he said. "Will it be a warning to other businesses to think twice before they move their operations offshore? Yes."
"It's pro growth for workers, not shareholders," the Mad Money host added, stating that Trump can "lean on business" to get things moving within the economy. And that, in the long run, will help investors.
Some sectors that are positioned to benefit include industrials, transports and the banks, Cramer said. He also said what's happening within the markets recently "is another rotation in a long line of rotations that will run their course before something new." And investors should prepare for that.
PVH Corp. (NYSE:PVH) has seen its stock soar more than 43% year to date. The clothing giant known for its Calvin Klein and Tommy Hilfiger brands also reported a 20-cent third-quarter earnings beat on Wednesday.
CEO Manny Chirico, a guest on Mad Money, attributed the success to a number of factors, including strong growth overseas, particularly in Europe and Asia. He also said the holiday season appears to be going well so far, and business within key channels of distribution are strong.
There was a feeling guidance from the company released Wednesday didn't meet Wall Street's expectations. Chirico said PVH wants to keep conservative in projecting the future. He also said the company will keep an eye out for acquisitions.
OPEC delivers a stunner
OPEC surprised many in the markets on Wednesday when members of the oil producing organization announced an unexpected cut in output. Cramer said the group may have delivered "the short squeeze of a lifetime."
What does the cut in production mean for U.S. energy companies? Oil stocks saw big moves higher during Wednesday's session. Cramer said investors should watch a few independent names, including those working within the Permian Basin in West Texas. Companies to closely monitor include EOG Resources (NYSE:EOG), Pioneer Natural Resources (NYSE:PXD) and Cimarex Energy (NYSE:XEC).
Companies operating in the Permian "made huge investments when things were low and made acquisitions in the best parts" of the region, Cramer said. "Now they are prepared to reap the harvest."
He offered some caution, however. Shares in energy companies have soared on the OPEC news, so it may be best to wait for a drop in price.
Marathon Petroleum Delivers For Shareholders
Marathon Petroleum (NYSE:MPC) CEO Gary Heminger also talked about the OPEC news as a guest on Mad Money. He thinks the deal among those oil producing nations will stick and that a rise in oil prices will follow.
The CEO also talked about how a Trump administration could help refiners like Marathon Petroleum. These companies could get a boost from an expedited review of pipeline permits, for example, he said.
Heminger also touted Marathon's efforts with shareholder returns, and said the company has an eye on how to build on those returns in the future.
The Dow (NYSEARCA:DIA) closed slightly higher Wednesday, thanks to a boost from a number of companies, some of which are positioned to benefit from a Trump administration.
Which stocks topped Cramer's list?
Goldman Sachs: The company was valued lower by some investors given its regulatory exposure. That could change under Trump. Cramer said the investment banking giant deserves a higher premium.
DuPont (NYSE:DD): The company stated its merger with Dow Chemical (NYSE:DOW) is intact. Trump appointees are expected to be favorable to these types of deals that make "stronger American companies" which can compete internationally, Cramer said.
Caterpillar (NYSE:CAT): This one is in a sweet spot, the Mad Money host said. Caterpillar will benefit from sales tied to fossil fuel extraction and an increase in infrastructure spending.
UnitedHealth (NYSE:UNH): This nationwide health insurance company could do better under the new administration.
Calls Taken By Cramer
Tesla (NASDAQ:TSLA): Cramer explained that the stock doesn't trade on fundamentals, and there's a lot of emotion behind the company. "I do not bet against or recommend cold stocks," he said.
Bank of America (NYSE:BAC): He said he's "not against owning" the stock.
Sunoco Logistics (NYSE:SXL): Cramer noted that he doesn't "trust this one."
CSX Corp. (NYSE:CSX): Railroad stocks will do better under Trump, the Mad Money host noted.
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