Dow futures turned higher amid tight election race. The stocks turned higher as Joe Biden has gained a lead in states needed to get to 270 electoral votes. The U.S. Presidential election remains too-close-to-call in key states due to being unable to count early voting tallies prior to Election Day.
In the last episode of Mad Money, Jim Cramer Cramer listed several reasons for Tuesday's strong market rally. For one thing, investors are breathing a sigh of relief that the most contentious election will soon end. There are glimmers of hope for an orderly transition of power if Biden wins and hope for another round of economic stimulus sometime between now and January.
TheStreet's Katherine Ross and Cramer are talking about buying Alibaba, Skyworks Solutions' earnings, and how investors should act ahead of the election results.
Alibaba Stock: Buy or Sell?
Alibaba Group Holding (BABA) - Get Report Limited shares slumped lower Tuesday after officials on the Shanghai Stock Exchange suspended the pending $37 billion listing of Ant Group, the world's biggest IPO.
The exchange said Ant's recent disclosure regarding regulatory changes in its key markets is a significant development that could mean it has failed to meet pre-set rules for providing timely information.
Cramer said that Ant Group’s IPO suspension is a chance for investors to buy Alibaba stock ahead of Singles Day on November 11.
Skyworks Solutions Stock: Buy or Sell?
Skyworks Solutions (SWKS) - Get Report on Monday reported non-GAAP fiscal Q4 (ending Oct. 2) earnings per share of $1.85 on revenues of $957 million, compared to consensus analyst estimates of $1.52 per share and revenues of $842 million.
For the first fiscal quarter of 2021, ending in December, Skyworks said it expects revenue to be between $1.04 billion and $1.07 billion, with non-GAAP diluted EPS of $2.06 at the midpoint of its revenue range. Analysts were expecting revenue of $934 million and non-GAAP EPS of $1.81.
Cramer said that Skyworks Solutions is “all systems go”, adding that investors should listen to the company’s conference call.
Don’t Buy If You don’t Know What Will Happen With The Election
Stocks finished higher Tuesday, adding to gains from the previous session, as Americans choose their president for the next four years.
The Dow Jones Industrial Average finished up 555 points, or 2.06%, to 27,480, the S&P 500 gained 1.78% and the Nasdaq rose 1.85%. At one point Tuesday the S&P 500 had risen 2.4%, its best one-day performance since June. Financial, industrial and tech stocks were the leading gainers Tuesday.
Cramer thinks that investors shouldn’t buy if they don’t know what will happen with the election and that they should do light selling.
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