Dow futures slip from a record close as traders look to improving economic sentiment while eyeing stimulus talks in Washington and Brexit negotiations in Europe.
In the last episode of Mad Money, Jim Cramer said that it's time to face the euphoria in the stock market head-on. The only problem? It turns out, a lot of the optimism is actually justified.
TheStreet's Katherine Ross and Cramer are talking about MP Materials stock and its reflection on the market and the market on Thursday.
MP Materials Stock: Buy or Sell?
James Litinsky, Chairman and founder of MP Materials Corp., said on Wednesday that the company was able to do “remarkable” things since buying their mine out of bankruptcy.
Litinsky added that earth magnets are required for electric vehicles, wind power, or drones. “It doesn't matter if your EV is powered by lithium-ion, solid-state batteries or hydrogen, the motors all need magnets,” he told Cramer during the “Executive Decision” segment on Mad Money.
Cramer said that the stock reflects the market because it was a SPAC, but a good one. He added that the minerals that they have are vital for electronic vehicles’ motors.
“If MP Materials hadn’t opened this mine, then China would have a strangle-hold on minerals that are required for EV motors,” Cramer said.
The Federal Reserve Blasted The Stock Market Thursday
Jobless claims unexpectedly jumped again last week as businesses continued to scale back their ranks amid the worst surge in the pandemic to date.
The Labor Department reported Thursday that 885,000 Americans filed for first-time jobless benefits in the week ended Dec. 12, up from a revised 862,000 claims the week earlier and the highest since early September. Economists polled by FactSet had been expecting claims of 800,000.
Cramer said that we are really struggling as job claims increased. He added that the Federal Reserve would blast any amount of Euphoria in the market.
Eyeing Vaccine News During The Holidays
Moderna’s (MRNA) - Get Report coronavirus vaccine candidate won approval from an FDA advisory committee late Thursday, paving the way for the second vaccine candidate to combat the Covid-19 pandemic to win full FDA approval.
The committee voted 20-0 with one abstention to recommend that the FDA grant Moderna’s emergency use authorization.
Cramer is eyeing news from Johnson & Johnson vaccine over the holidays, saying he would take the vaccine because it is only one shot.
"That no money is made until you take it off the table," he advised investors.
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