Stocks discussed on the in-depth session of Jim Cramer's Mad Money Program, Tuesday, March 1.
You need a map to navigate the twists and turns in this market.
That's what Mad Money host Jim Cramer offered to viewers Tuesday. After a tumble Monday, markets roared back Tuesday, with the S&P 500 and Dow climbing more than 2% and the Nasdaq soaring nearly 3%.
To determine why markets rallied, Cramer told viewers to look overseas, particularly to two events in China.
First, China's official manufacturing purchasing managers index fell in February to its lowest level in more than four years. Generally, that's not great news for global markets. However, Cramer pointed out that China's Congress is meeting Saturday, and that could mean a significant stimulus package may be in the works for the key economy.
Second, New York Federal Reserve President William Dudley delivered a speech in China in which he changed direction on future rate hikes. Before the speech, Dudley was hinting at more rate hikes. But Dudley appeared more cautious on the economy's future direction in his remarks. "I cannot stress enough how important this Dudley speech was to the market, even though it happened when most of us were sleeping," Cramer said.
"You can't have the (Fed) hawks turn dovish and the Chinese expanding and stay bearish," Cramer said.
Add to that mix good economic news that surfaced during the trading day. Wall Street received positive manufacturing numbers, good construction figures and a small business survey that showed employment gains (a key development before Friday's payrolls report). Also, most auto manufacturers reported strong February sales. And oil rallied.
Oil brought Cramer to his final point.
Marathon Oil (NYSE:MRO) increased its offering of new stock. Cramer said the move for Marathon, which has been impacted by low oil prices like others in the energy sector, took the "not so hot stock to a good one."
How do investors get more positive on stocks? Look for more positive signs, Cramer said (Friday's employment report is a key development to watch).
Wayfair (NYSE:W) shook up the markets when it easily beat fourth quarter estimates and guided for first quarter revenue of $660 million-$700 million, above consensus estimates. Despite the strong numbers, the stock hasn't moved much since it released its report last week.
Cramer spent time speaking with CEO Niraj Shah about the company's prospects. Shah said the company has great unit economics "and the reason we're growing so fast is on the back of repeat (customers)."
Shah said every piece of Wayfair's online business has a tremendous amount of technology. The company also is eyeing international expansion, including into Europe. Why Europe? "It's just as big as the U.S. market," Shah said.
Dark Clouds Over Valeant
Dark clouds continue to hover over Valeant (VRX). The pharmaceutical company has raised eyebrows with a number of moves regarding its sales practices and accounting books, and the stock has been a short-selling target, including a report from notorious short seller Citron.
Why should investors cast a wary eye toward the stock?
Valeant's unorthodox sales practices have caught negative attention. And the company has invoked the ire of politicians (never a good thing during an election year) for what some call "predatory pricing" for its drugs. Democratic presidential candidate Hillary Clinton has called out the company on its pricing regime.
"The guy who said there really is no such thing as bad publicity had not seen this," Cramer said.
For investors, two key developments surfaced in February. First, the company said it would need to restate some revenue and earnings figures from 2014. Second, the company said it will delay filing its fiscal year 2015 report (which usually attracts the attention of the Securities and Exchange Commission, Cramer said).
Valeant has a reputation for accounting irregularities. And when those irregularities surface, "that equals sell," Cramer said.
Cramer also met with DexCom (NASDAQ:DXCM) CEO Kevin Sayer during the show. The company is rolling out a mobile-based glucose monitoring system for diabetics. Sayer said the product is doing well, adding patients and attracting interest from healthcare providers, he said.
Sayer said the business has grown more than 50% in the past year and its products are gaining market share. The company plans to launch a new receiver and insertion system in the United States before the end of 2016. Sayer said treatment for Type II diabetes could be the next big market.
AMN Healthcare: Demand Growing For Services
AMN Healthcare Services (AHS) provides nursing/healthcare staffing and placement services. The company has seen demand for its services grow, especially with an aging population "that's going to continue to present challenges" for healthcare providers, said CEO Susan Salka.
Salka spent time with Cramer outlining the business. Demand for healthcare services is growing, especially as a large number of nurses and clinicians head for retirement and demand for healthcare services grows. "We come in with workforce solutions," she said. Salka added the business is just at the start of seeing strong demand for its services.
Calls taken by Cramer:
Tesla (NASDAQ:TSLA): The stock is the subject of a recent Citron report. "People saw that and people didn't like that," Cramer said. "I need something to make me feel better."
Priceline (PCLN): "I like the Priceline quarter."
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