Stocks are mixed Tuesday following its strongest rally since June in trading on Monday, with investors continuing to eye bond markets and inflation data as the economy extends its post-COVID recovery.
In the last episode of Mad Money, Jim Cramer sifts through this relentless run in the reopening plays to find the less-obvious companies poised for profit.
TheStreet's Katherine Ross and Cramer are talking about the CDC's approval of Johnson & Johnson's vaccine candidate, the upcoming jobs report, and the bond market vigilantes.
Emergent BioSolutions: Buy Or Sell?
The CDC's Advisory Committee on Immunization Practices voted 12-0 to approve the single-shot Johnson & Johnson (JNJ) - Get Report vaccine for widespread use on Sunday, a move that followed the FDA's Emergency Use Authorization decision on Saturday.
Cramer said specialty biopharmaceutical firm Emergent BioSolutions (EBS) - Get Report, a company that J&J contracted to make additional vaccines is an immediate buy on the news of J&J's emergency use authorization. "The stock is down 40 points from its high."
Markets This Week: Jobs Report
The U.S. Labor Department's February jobs report is set to release on Friday.
Cramer said the employment number is the most important data statistic to watch. "If you get the employment number right, that's how you make the most money. There is no other indicator that even comes near that. If we get a strong employment number, you're going to get more pressure from the bond vigilantes to take interest rates up. If we have an unbelievable number, you will have to reset stocks. If the number is benign, then rates are going to go lower and the rally will continue."
Stocks on Monday finished higher, with the S&P 500 posting its best session in nine months, as the bond market stabilized and U.S. clearance of Johnson & Johnson’s one-shot COVID-19 vaccine boosted market sentiment.
Cramer said this time, we have a Fed chief that wants to raise interest rates but, we have bond market vigilantes who furiously want him to raise numbers. "At a certain point what's going to happen if they keep taking things up, then we're going to hear that the housing boom, a big driver of the economy, is going to falter. And we'll also start to see bad loans."