Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday, November 2.
"This market punishes you for having too much conviction. When we get too negative, we're blindsided by positive developments. When we get too optimistic, we get hit with days like today. I bet next week gives us more of the same," said Cramer. With that, he discussed the game plan for the week.
Earnings: Marriott International (NASDAQ:MAR)
Something is strange with Marriott International. "You can normally bank on this hotel company to beat numbers, but it failed to do so last time around and the stock's down 11% for the year," said Cramer. He felt better after speaking to CEO Arne Sorenson.
Election day: It's 2018 mid-term elections. "If you're banking on a GOP victory, the defense stocks will rally. How about if the Democrats prevail? Honestly, the market likes gridlock, so that could be a reason to rally all by itself. On the other hand, the market's less enthusiastic about House Oversight Committee investigations into the White House. Let's call it a wash," said Cramer.
Cramer is bullish on CVS which is looking to merge with Aetna (NYSE:AET) and he would be a buyer before earnings. Etsy's stock has doubled this year and Cramer advised waiting for the company to report before buying. He feels good about Wendy's prospects and will be a buyer before earnings.
Cramer is bullish on Twilio and Ralph Lauren too.
Cramer is bullish on Humana and called it one of the best health insurers. Qualcomm is good too, but Cramer advised waiting for the company's conference call to get a reading on share buybacks, patent disputes with Apple and China business.
Take-Two will discuss the success of its latest release 'Red Dead Redemption 2'. Cramer would not touch Wynn Resorts till the trade war dispute is resolved.
Earnings: Disney (NYSE:DIS)
"I'm very excited about this call and I would absolutely be a buyer of the stock so long as it doesn't run too much going into the quarter. No longer will Disney's narrative be controlled by the stories and the vicissitudes of ESPN. That's a huge achievement in and of itself," said Cramer.
Producer Price Index number will be out on Friday and Cramer reminded viewers that good news is bad news.
The pricing power of a company determines how its stock will trade in this fickle market.
However, Apple (NASDAQ:AAPL) has been going down despite the rise in average selling price for iPhones. Cramer thinks the stock deserves better and he is not concerned about the company not reporting unit sales of iPhones as their service business is the one to watch.
As the stock has come down, the company will be buying back stock. "I still believe you should own Apple, not trade it. I regard Apple as the greatest consumer packaged goods play on earth," said Cramer.
In an otherwise wild October, McDonald's reported a great quarter and the stock rallied. "Thanks to the resulting rally, McDonald's was one of the top five performers in the Dow last month, with the stock up 5.7%. Why does this matter? Because if a stock can rally when everything's falling apart, imagine what it can do when the dust settles," said Cramer.
After taking over, CEO Steve Easterbrook has changed the menu, begun a store remodeling program and introduced delivery via a partnership with Uber Eats. These moves have paid off for the company and Cramer said he has become a fan of the CEO.
The company has also boosted its dividend and now yields 2.65%. "Here's the bottom line on this remarkable story: We know McDonald's is firing on all cylinders, and this company has no need to worry about the trade war or the Federal Reserve, which is why its stock could go higher today when the rest of the market was pulling back," concluded Cramer.
Executive interview - Just Capital
Cramer interviewed chairman and co-founder Paul Tudor Jones of hedge fund Just Capital.
Jones believes that you can do well by doing good. He added that he has never seen so much social tumult and there needs to be a social change. He is of the view that capitalism needs to be modernized and since the private economy is four times the size of the public economy, social change needs to come from the private sector.
Jones said that a socially just company takes care of workers, customers and products as the top three criteria, followed by environment and communities they serve. The first three make a good business model but taking care of workers and the environment makes a company just.
Using these criteria, the Just Index breaks the Russell 2000 into sectors and takes the top companies in each sector. The top firms make 7% more return on equity than the rest.
Commenting on the rising interest rates, he said, "Obviously, what typically starts bear markets is interest rates get so high they click it. We're clearly going through a tightening cycle. At some point, they're going to stop. I think you'll have a chance to see the old highs revisited if and when and before we go into a bear market."
"We'll probably rally after whenever they finish tightening. Then you have to pay attention," he concluded.
CEO interview - Foursquare
Cramer interviewed CEO Jeff Glueck of privately held Foursquare. It's a technology platform that leverages user check-ins to help companies provide personalized content.
Glueck said that 'what's around you' matters every time. The location is of great importance not only for knowing the weather at work, but it is also different when you're out at a ball game. It's about being aware of what's around you.
"We are the sort of platform that everyone who's not Google or Facebook want to use because we understand the whole world's places and we understand different floors of buildings, where you go in malls. It's very hard technology, and so really only Google, Facebook and Foursquare have this precision globally," he added.
The company is using location-based data to help other companies enhance their location-based technology, such as TripAdvisor with social based recommendations and Tinder to help singles find matches with common interests.
Foursquare was in 46th place on CNBC's Disruptor 50 list in 2017.
Viewer calls taken by Cramer
Five Below (NASDAQ:FIVE): The stock is down big time and it's a bargain.
Air Transport Services Group (NASDAQ:ATSG): Cramer thinks it's not worth speculating on. Don't buy.
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