Dow futures hold near 30,000 extends declines ahead of Thanksgiving as stocks hit a record high following yesterday's rally on Wall Street that lifted the Dow Jones Industrial Average past the 30,000 point mark for the first time in history.
In the last episode of Mad Money, Jim Cramer asked his viewers "How can the Dow Jones Industrial Average be hitting all-time highs while hospitals are overflowing with COVID patients?" Well, the markets' surge to new heights stems from 10 "tipping points" which have been driving its momentum, he said.
TheStreet's Katherine Ross and Cramer are talking about buying McCormick and oil stocks, and Joe Biden’s choice of Janet Yellen as prospective Treasury Secretary.
McCormick Stock: Buy or Sell?
McCormick called hot sauce a high-growth category and said Cholula will pair well with its portfolio of seasonings and other products.
Cramer said that investors shouldn’t buy McCormick after a COVID-19 vaccine is delivered because it is one of the stocks that may not be robust as they are when there is a “pandemic rage.”
“They are doing good moves but at the same time is that we now realize that with a vaccine we are going to go out again and there won’t be much that is made at home so the stock has to go down before you could buy it again,” he added.
Pioneer and Chevron Are The Oil Stocks Investors Should Buy
Last month, Chevron Corp. (CVX) - Get Report posted a narrower-than-expected third-quarter loss, but missed Street forecasts on revenue amid a 30% decline in global oil prices.
Chevron said its adjusted loss for the three months ending in September was pegged at 11 cents per share, 15 cents inside the Street consensus forecast but a big swing from last year's profit of $1.55 per share. Group revenues fell 33.55% from last year to $24.45 billion, Chevron said, a figure that missed analysts' forecasts of a $25.9 billion tally.
Janet Yellen As The Prospective Treasury Secretary
President-elect Joe Biden has been picking his cabinet and he has reportedly tapped former Federal Reserve chair, Janet Yellen, to be nominated for Treasury secretary. Investors expect more economic stimulus is likely with Yellen as Treasury secretary.
Outgoing Treasury Secretary Steven Mnuchin is moving to put nearly half a trillion dollars of Covid relief funds out of easy reach of President-Elect Joe Biden’s administration, according to Bloomberg.
Mnuchin plans to put $455 billion, most of it carved back from the Federal Reserve, into treasury’s general fund, where it will require new congressional authorization before being used.
Cramer said that “we are in a really difficult juncture,” because it is not known how soon the vaccine can be distributed but until then COVID-19 cases are surging. “The more people get sick the more we will need a stimulus,” he added.
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