Dow futures tumble as global stocks retreat, with Wall Street set for its biggest monthly decline since March, as tech earnings fail to offset the threat of a surge in coronavirus infections.
In the last episode of Mad Money, Jim Cramer said that while Facebook (FB) - Get Report, Amazon (AMZN) - Get Report, Apple (AAPL) - Get Report, Netflix (NFLX) - Get Report and Alphabet (GOOGL) - Get Report are expensive by traditional metrics when investors look at the metrics that really matter, it's ridiculous to not invest in them.
TheStreet's Katherine Ross and Cramer discussed buying ServiceNow stock, developments with Ford, and this week's tech earnings.
ServiceNow Stock: Buy or Sell?
Shares of the Santa Clara, Calif.-based company were up 2.7% to $497.10 on Thursday.
Cramer said he would buy ServiceNow stock after these earnings.
Ford Stock: Buy or Sell?
Ford Motor Co. (F) - Get Report shares surged to an eight-month high Thursday after the carmaker smashed Wall Street forecasts for its third-quarter earnings thanks in part to the strongest North American profit margins in four years.
The car company said adjusted earnings for the three months ending in September were pegged at 65 cents per share and revenues rose 10.5% to a forecast-beating $37.5 billion.
Cramer said that the pandemic “was a saving grace” for Ford. He thinks that Ford will be making money under CEO Jim Farley as the stock will be going up.
How to Approach Tech Earnings
Stocks finished higher on Thursday as economic growth in the U.S. was higher than estimates and jobless claims declined.
The rebound came after the S&P 500's 3.5% drop in the previous session, the biggest loss since June 11. And investors are awaiting earnings reports from some of the largest U.S. tech companies.
Cramer advised investors to “do nothing” after tech earnings landslide. He said that investors should buy Apple Inc. (AAPL) - Get Report stock but not trade it, and advised against buying Alphabet Inc. (GOOGL) - Get Report stock now. He also added that Facebook Inc. (FB) - Get Report will be a “fabulous” stock.
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