Dow futures resume surge as stocks rally, following the biggest post-election surge in Wall Street history, as former Vice President Joe Biden looks set to win the White House.
In the last episode of Mad Money, Jim Cramer reminded his viewers that a divided government is a nirvana for the stock market. That's exactly what we got with from Election Day, and it's great news for the growth stocks.
TheStreet's Katherine Ross and Cramer are talking about buying healthcare stocks, the impact of the lack of democratic sweep on the market, and stocks to avoid after the election.
Healthcare Stocks: Buy or Sell?
Shares of healthcare stocks jumped on Wednesday as investors calculated that regardless of whether Donald Trump or Joe Biden ends up in the White House over the next four years a Senate stalemate will mean no dramatic changes for either sector.
Shares of Anthem (ANTM) - Get Report, Cigna, UnitedHealth (UNH) - Get Report and others were all trading higher on Wednesday as investors took solace in general healthcare providers that they expect will continue to provide health services for Americans irrespective of who is in the Oval Office.
Cramer said that healthcare stocks are “just buys” at this point where Joe Biden is leading over Donald Trump in the presidential election. He cautioned investors that when the market is up this much, they shouldn’t buy stocks that they don’t like.
No Blue Wave is Good for Stocks
As of Wednesday, neither incumbent President Donald J. Trump or challenger former vice president Joe Biden has secured enough of the electoral college to take the Oval, though Biden has maintained a slight lead.
Cramer said that Biden is considered to be “less erratic and his lack of erratic behavior coupled with the Senate being republican is ideal for the stock market.”
Investors should not buy stocks that have no growth or value, Cramer advised. He added that investors should understand that “there is no victory by the hard left and that is very good for the stocks.”
Three Stocks Investors Should Avoid
Last week, Starbucks shares traded lower, despite the coffee-chain giant reporting fiscal fourth-quarter earnings and sales that beat analysts’ forecasts and saying that it expects to fully recover from the pandemic next year.
Shares of Starbucks (SBUX) - Get Report were down 2.71% at $85.91 after the Seattle-based coffee company posted adjusted earnings of 51 cents a share, topping analysts' forecasts. Sales were $6.2 billion vs. $6.06 billion expected by analysts.
The company said it lost $1.2 billion in sales because of the pandemic.
He previously named those three stocks as ones to look into after the election.
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