Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday, August 3.
As earnings season continues, investors have a lot of information to process from earnings, tech volatility, trade tensions, etc. "But we have to stick to our knitting here, and that's why every Friday I give you my game plan, where I help you figure out what could happen next week to individual stocks and some macro news," said Cramer. With that, he discussed the game plan for the week.
Newell Brands has a lot of issues with rising raw costs, and Carl Icahn has a stake in the company. It has been a disaster so far. Marriott International is a premier operator and can produce good results for the coming quarter.
The housing industry and stocks connected to it are facing pressure from lack of inventory and rising mortgage rates. Zillow, on the other hand, may have enough differentiated new products to tackle the pressure. Etsy has had a good run and is a kingpin for handmade goods. "Etsy just might be the anti-Amazon: the company that unites crafts people worldwide as a curated place to sell their wares. I'd buy some both before the quarter and after if it pulls back," the Mad Money host said.
Andeavor could report the biggest surprise quarter, and it's on the path to merge with Marathon Petroleum Corp. (NYSE:MPC). "This new company sits in the middle of the most lucrative part of the entire oil patch, buying crude at low prices in places that are landlocked without enough pipeline infrastructure, and then refining it and marking it up for the same prices that other refiners get," said Cramer.
Emerson Electric is a well-run company caught in the crosshairs of a trade war. "But it's now firing on all cylinders, people, and if we don't hear much about trade next week, Emerson could rally to a new all-time high, just a few points from here," Cramer noted.
Cramer hopes ESPN does not dominate the Disney report again. The main reason to own the stock is that it's a cash cow. "Now, I don't know how much time Disney will devote to the positives from its deal with Fox, which, coincidentally, reports on Wednesday. I think Disney's gone from being a problematic entertainment company, hobbled by cord-cutting, to a growth business filled with synergies among its movies, television shows and theme parks once this acquisition closes," he elaborated.
Cramer thinks the new Keurig, which is a soda and coffee giant, can produce good results.
CVS will talk about its pending merger with Aetna (NYSE:AET). "I like all the health insurers, and if Aetna's allowed to merge with CVS, you could do a heck of a lot worse than owning this company. That said, I don't know if you're being paid enough [to wait] for the deal to close, even with that 3% dividend. In the meantime, you are at Amazon's (NASDAQ:AMZN) headline mercy," said Cramer.
Occidental Petroleum could also report better than its competitors. It's one of the best oil stocks to own.
Dropbox's prospects look good with the subscription economy growing. "This stock has almost round-tripped since its red-hot IPO, and I think it makes a ton of sense to buy some Dropbox now and then grab some after it reports," Cramer said.
There is lot of negativity around Viacom. "It's got some incredible assets, my favorite being the movie studio Paramount, a premier asset - yes, of Mission Impossible fame - and its brand new management team is cutting the fat, putting out superior entertainment product, but nobody's paying attention. I think that a Viacom-CBS merger would be fantastic for shareholders, but even an independent Viacom is worth buying ahead of this quarter," he added.
The CPI number will be out on Friday. It's an important number which will show if inflation has picked up. If it does, the Fed will be inclined to raise rates twice this year, which could send ripples through the market along with trade fears.
Viewer calls taken by Cramer
What are the rules to buy or sell a stock on weakness? When the balance sheet is breaking, the cash is burning and the competitors are coming, that's the time to sell on weakness. If the stock is down despite everything being intact, it's time to buy on weakness.
The remaining part of Cramer's show today was a repeat of an earlier show.
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