Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday, December 7.
A weak non-farm payroll report caused a market-wide meltdown with the Dow going down by 2.24%, S&P500 down 2.33% and Nasdaq down 3.30%, but this bad news is good news. The Fed is less likely to hike rates which can be pretty positive for stocks.
Powell is in a lose-lose situation. If he doesn't give a fourth quarter rate hike, it will cause panic. With that, Cramer discussed the game plan for the week.
Earnings: Stitch Fix (NASDAQ:SFIX)
Stitch Fix will report on Monday, after market close. The company lost a third of its value, when it reported its last quarter earnings. "E-Commerce has become one of the most volatile areas in this market. I am always trying to get a feel for it. Why? Because it's a huge driver of the economy," Cramer said. "If Stitch Fix can turn itself around that's good news for the market," he added.
Earnings: Dave & Buster's (NASDAQ:PLAY)
Dave & Buster's is a play on the experiential economy. The company reflects the consumer spending trend, which if not strong, will mean trouble for the economy. Cramer won't be missing its conference call.
Under Armour (NYSE:UAA) will host its analyst day on Wednesday and it will help Cramer get the state of apparel and footwear both domestic and in China. Cramer had recommended the stock when it was trading in the low-teens.
Ciena will report its earnings and will provide detailed information on the rollout of 5G, as well as about Chinese competitors.
Costco will report its earning after market close. The company rallied last week after reporting its same-store sales figure last week. Cramer wants to hear the retailer's insight on e-commerce and competition in the food segment.
Starbucks (NASDAQ:SBUX) will host its analyst day which will provide more information on newsmaking events, employee benefit upgrades and other special initiatives.
"Starbucks is on a roll right now and I expect CEO Kevin Johnson will give us a road map for a return to robust growth in the United States. The company's putting up some excellent numbers in China, too. Let's see if they can keep it up, even with the escalating trade tensions," said Cramer.
Health insurance giant Centene's (NYSE:CNC) analyst meeting is expected to be excellent as the government-sponsored health-care providers continue to win new states and contracts.
"I expect a darned good story. That whole segment, by the way, of the market, along with the hospital group, has really held up better than just about anything else because it does so well in a slowdown, which is what people are now worried about: a Fed-induced slowdown," said Cramer.
"Now that the S&P 500 has gone negative for the year, let me give you one warning: I think we're going to have to slog through these volatility sessions for a bit. Get used to these crosscurrents, because this is the new normal, at least for now," concluded Cramer.
The trade war with China is not about trade, but it's about finding out who the global superpower is. Investors who think that the Huawei CFO arrest will derail talks are looking at it wrong.
China has embraced some capitalism traits, but certainly didn't go all the way with it and it never embraced democracy. Many U.S. companies in China need a joint venture to do business, and those often steal their intellectual property. Many U.S. companies let it go because China is a lucrative market.
"The real point is, wherever you stand on this issue, it's bigger than corporate earnings. It's bigger than the economy. The trade war with China is about global hegemony - who gets to rule the world - and that's why it's so darned intractable, because these are pretty high stakes," concluded Cramer.
Cloud King Stocks
The Fed's announcement in October to keep raising interest rates led to sell-offs in Cramer's seven Cloud Kings stocks, Adobe (NASDAQ:ADBE), Salesforce.com (NYSE:CRM), ServiceNow (NYSE:NOW), Red Hat (NYSE:RHT), Splunk (NASDAQ:SPLK), VMware (NYSE:VMW) and WorkDay (NYSE:WDAY), but with the Fed chief now reversing its stance and many companies reporting better earnings, the future looks better.
Specifically, he thinks four stocks out of seven are good buys on weakness based on their last quarter earnings and outlook.
CEO interview - Domo (NASDAQ:DOMO)
Domo is a cloud-based operating system which allows companies to manage their business from an employee's phone. The stock of DOMO is down 25.3% YTD and was up 30% in Thursday's trade on earnings, even though markets were down. Cramer interviewed CEO Josh James to find out what lies ahead.
The company is dramatically under pricing the product to bring in more customers and increase its scale. The business is doing well and the company will become cash flow positive without raising any more money.
One of their customers is Target (NYSE:TGT) and Domo has expanded in every department. Be it the CEO or a regional manager, they can walk into the store and know what's selling on any given day.
CEO interview - Union Square Hospitality Group
Cramer interviewed CEO Danny Meyers of Union Square Hospitality Group. He is a hospitality expert behind companies like Shake Shack (NYSE:SHAK).
Meyers and CIO Mark Leavitt recently launched Enlightened Hospitality Investments, a fund that invests in companies that shares their focus on amazing customer experiences. The fund has invested in companies like Joe Coffee Company, Resy, Goldbelly and Salt & Straw.
Joe Ariel, the CEO of Goldbelly states that the company's mission is to bring people comfort through food experiences wherever they are. The company serves as a platform for gourmet and specialty foods, allowing them to be shipped all over the country. "Any food, any where, any time," Ariel added.
The restaurant landscape is changing and customers look for comfort and convenience. At the same time, there is big appetite for new and prior experiences that come from food.
Viewer calls taken by Cramer
Shopify (NYSE:SHOP): It has great machinery on artificial intelligence. Selloffs are causing a lot of downward pressure but are buying opportunities as well. Go with Salesforce.com, Splunk and VMWare.
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