Morning Bell With Jim Cramer: Buy COVID-19 Index Stocks

Jim Cramer shares stock market news about COVID-19 and retail stocks investors should eye and buying Caterpillar.
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Dow futures gain ahead of busy earnings week and hope around stimulus amid surging global coronavirus cases. Global stocks start with week on a positive note, with investors eye vaccine developments.

In the last episode of Mad Money, Jim Cramer dubbed some stocks as "magnificent seven." These are household names that will continue to rise, according to Cramer, during the pandemic as long as we're waiting on a vaccine.

TheStreet's Katherine Ross and Cramer are on Street Lightning talking about the COVID-19 and retail stocks investors should eye and buying Caterpillar.

Coronavirus Stocks: Buy or Sell?

There are over 40.1 million cases of the virus worldwide, with over 1.1 million deaths, according to Johns Hopkins. The U.S. has surpassed 8.1 million cases with 219,000 deaths.

Per the COVID-19 Tracking Project, there were 48,922 new cases reported Sunday, which is lower than the 57,943 cases reported the day earlier.

Cramer thinks however that some stocks are doing well amid the surge in global coronavirus cases. He said that investors should look into stocks that are COVID-19 oriented such as Zoom  (ZM) - Get Report, Shopify  (SHOP) - Get Report, and Amazon  (AMZN) - Get Report because they continue to be supported by the pandemic.

“You have more COVID-19, you buy the COVID stocks,” he said.

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Caterpillar Stock: Buy or Sell?

Earlier this month, Caterpillar  (CAT) - Get Report shares rose after the construction equipment titan announced it was buying the oil and gas division of Weir Group  (WEGRY) , a Scotland-based engineering company for $405 million in cash.

The transaction includes more than 40 Weir oil and gas manufacturing and services facilities and approximately 2,000 employees.

Cramer advises investors who are starting to show interest in the industrial sector to consider the stocks that we have forgotten. He said investors should focus on Caterpillar after it reports and after its shares go down and bounce again. Cramer also said that Honeywell  (HON) - Get Report is a buy.

Retail Stocks: Buy or Sell?

U.S. retail sales surged higher in September, the Commerce Department said on Friday, setting up a record contribution for consumer spending to third-quarter GDP. Retail sales rose 1.9% from last year, the data indicated and were 1.4% higher once volatile components such as auto, gas, and building materials were stripped out, compared to a 0.1% pullback in August.

Total retail sales for the July to September period, the Commerce Department said, rose 3.6% from last year and suggests consumer spending

Cramer said that he likes a number of retail stocks that he thinks investors should eye including GAP  (GAP) , Costco  (COST) - Get Report, Bed, Bath & Beyond  (BBBY) - Get Report, Amazon, and Best Buy  (BBY) - Get Report.

Amazon and Costco are key holdings in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.