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Morning Bell With Jim Cramer: Focus on Johnson & Johnson Earnings

Jim Cramer shares stock market news about buying Johnson & Johnson vaccine trial pause, Disney’s reorganization, and banks’ earnings.

Dow futures are mixed Wednesday due to the concerns over Johnson & Johnson pausing its coronavirus vaccine trial. Johnson & Johnson becomes the second "Operation Warp Speed' trial to pause following the unexplained illness of one of its participants.

In the last episode of Mad Money, Jim Cramer said stock picking is all about seeing the patterns, even if those patterns are completely obvious and don't make a whole lot of sense.

TheStreet's Katherine Ross and Cramer are on Street Lightning talking about buying Johnson & Johnson vaccine trial pause, Disney’s reorganization, and banks’ earnings.

Johnson & Johnson Stock: Buy or Sell?

Johnson & Johnson  (JNJ) - Get Johnson & Johnson (JNJ) Report slumped lower Tuesday following news that it has paused its late-stage coronavirus vaccine trial due to an unexplained illness from one of its participants.

The company said the pause should only be temporary, however, as it reviews data linked to the trial and determines whether the unnamed participant received a dose of the vaccine candidate or a mere placebo.

Cramer said that Johnson & Johnson's pausing vaccine trials shouldn’t raise investors’ concern as the stock should be trading off of its good growth in pharmaceuticals. He added that it is a good opportunity even if trials were to stop today, the company is still doing very well.

Disney Stock: Buy or Sell?

On Monday, Walt Disney Co.  (DIS) - Get Walt Disney Company Report said that it will reorganize its media and entertainment businesses and named Kareem Daniel as Chairman, Media, and Entertainment Distribution.

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The move would accelerate its direct-to-consumer strategy. A newly centralized distribution group will oversee the commercialization and distribution of all content globally, according to the company.

Cramer thinks that Disney’s reorganization is a plan to get rid of ESPN which he says has now become expensive as they have trouble monetizing. He added that ESPN is no longer the precious place that it once was.

Why Banks Aren’t Going Up After Earnings?

Stock gains were mixed this week in a market largely unchanged from what was seen in the morning. Risk sentiment was poor even as JPMorgan  (JPM) - Get JPMorgan Chase & Co. (JPM) Report earnings were stellar. Positively, JPMorgan posted revenue of $29 billion, narrowly beating estimates. Earnings per share were $2.92, rising 9% year-over-year and beating estimates of $2.23.

Cramer said he is nervous about the banks because they are not achieving great growth and they can’t do buybacks. 

He added that banks are not making enough money, despite making some service fees, opening up many accounts “but they are not making a lot of money so I don’t know why people are excited about it,” he said.

The Walt Disney Co. and Johnson and Johnson 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.