Dow futures slip lower as Wall Street peels away from yesterday's record-highs amid rising coronavirus infection rates and fresh business and travel restrictions around the country.
In the last episode of Mad Money, Jim Cramer said that if we've learned anything from the stock market lately, it's that conventional wisdom has been wrong at every step, and that's why the markets are hitting all-time highs while still in the middle of a raging pandemic.
TheStreet's Katherine Ross and Cramer are talking about the PNC Bank acquisition deal, buying T-Mobile stock, and focusing on vaccine rollout than vaccine stocks.
PNC Bank Stock: Buy or Sell?
On Monday, PNC Financial Services (PNC) - Get Report said it will acquire the U.S. banking operations of Spain's BBVA for $11.6 billion in cash, making it the biggest regional bank by assets under management in the U.S. as of now.
Pittsburgh-based PNC said that it has agreed to buy Banco Bilbao Vizcaya Argentaria SA’s (BBVA) - Get Report banking operations with cash on hand in a fixed price structure. It is expected to boost earnings by about 21% in 2022.
Cramer said he likes this deal, adding that BBVA needed the money “with all foreign banks being in trouble.” He thinks that the deal is fantastic, but he is worried “that the banks will end up going down.”
T-Mobile Stock: Buy or Sell?
T-Mobile posted earnings of $1.25 billion, or $1 a share, compared with $870 million, or $1 a share, in the year-earlier period.
Cramer said that T-Mobile is a stock that Robinhood investors should consider because it has got “fabulous growth” and it is a millennial stock. However, he added that if investors want income then they should buy Verizon (VZ) - Get Report stock over T-Mobile stock.
Focusing on Vaccine Rollout Than Stocks
The company said its vaccine hit a 94.5% efficacy rate, topping the 90% threshold reported by Pfizer last week, and noted that it can last for up to six months when stored at standard freezer temperatures of -4 degrees Fahrenheit, compared to the -94 degree temperatures required for the Pfizer vaccine.
Cramer said that he wants to focus on CVS (CVS) - Get Report because it will deliver and get the vaccine to people. He added that he is not a big fan of the vaccine stocks because they are “too binary,” but playing the rollout feature will have more than one call, for example, “CVS changes its business model fast and it seems to be working.”
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