Dow futures are rising Friday morning after stocks ended higher Thursday. Wall Street parsed mixed signals about a stimulus package from House Speaker Nancy Pelosi and President Donald Trump. Hopes of a stimulus package before the election are dwindling.
In the last episode of Mad Money, Jim Cramer reminded viewers that there's always a bull market somewhere and in this market, there are mini-bull markets almost everywhere. He said that IBM and Red Hat will do great as a spin-off.
TheStreet's Katherine Ross and Cramer are on Street Lightning talking about buying IBM, selling Regeneron, buying Costco, and airlines’ business performance.
Costco Stock: Buy or Sell?
Costco (COST) - Get Costco Wholesale Corporation Report sales continue to surge through the pandemic as the company said net sales for the five weeks ending on October 5 were up 16.9% from last year at $16.84 billion, while comparable-store sales surged by a much better-than-expected 15.5%.
E-commerce sales, Costco said, rose by a staggering 90.3% from last year as customers increasingly used online shopping, as well as curbside pickup, to buy home-based staples amid the coronavirus pandemic.
Cramer said Costco is a company that has always been expensive. He advises investors to buy some Costco stock now and “hope” that it might come down.
IBM Stock: Buy or Sell?
International Business Machines Corp. shares jumped higher Thursday after the cloud-focused computer group said it would spin off its infrastructure division.
IBM (IBM) - Get International Business Machines (IBM) Report said it will sell its 'managed infrastructure services unit', a legacy division that sits within the group's global technology services group. The move will help concentrate IBM's focus on hybrid cloud growth, the company said.
Cramer thinks that it has the possibility of being a good stock, adding that Red Hat and IBM will do great as a spin-off.
Regeneron Stock: Buy or Sell?
Regeneron Pharmaceuticals (REGN) - Get Regeneron Pharmaceuticals, Inc. Report shares jumped higher on Thursday after President Donald Trump praised its coronavirus antibody treatment and the drugmaker said it will seek emergency use authorization from the Food & Drug Administration.
The company said its REGN-COV2 treatment, a combination of two monoclonal antibodies, is designed to prevent the infectivity of SARS-CoV-2, the virus that causes COVID-19.
Cramer tells investors not to buy Regeneron off of its application for Emergency Use Authorization approval with the FDA.
“When Regeneron is going up, that is for losers,” he said.
Airlines Are Losing Money Everyday
On Thursday, airline stocks were fluctuating after House Speaker Nancy Pelosi said there would be no standalone coronavirus aid bill for air carriers.
American Airlines (AAL) - Get American Airlines Group, Inc. Report, United Airlines (UAL) - Get United Airlines Holdings, Inc. Report, Delta Air Lines (DAL) - Get Delta Air Lines, Inc. Report, and Southwest Airlines (LUV) - Get Southwest Airlines Co. Report were all edging higher after slipping earlier in the trading day. Pelosi said aid for airlines would have to be part of a larger U.S. stimulus discussion.
Cramer said that there are many areas of the economy that are strong, but some other areas are “unbelievably” weak and need the government’s aid. To Cramer, airlines are not doing well as a business as they lose money every day, he noted.