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Morning Bell With Jim Cramer: Tesla Shares Will Keep Rising

Jim Cramer shares stock market news including when to buy Tesla, the latest talks on the stimulus deal, Airlines’ layoffs, and buying Bed Bath & Beyond Earnings.

The Dow is down over 100 points Friday morning in trading after President Trump tested positive for Covid-19. The S&P 500 and Nasdaq are also down in trading on Friday. 

In the last episode of Mad Money, Jim Cramer said America might need a stimulus bill, but the stock market definitely doesn't.

TheStreet's Katherine Ross and Cramer are on Street Lightning talking about Tesla shares rising, stimulus deal, Airlines’ layoffs, and buying Bed Bath & Beyond Earnings.

Bed Bath & Beyond: Buy or Sell?

Bed Bath & Beyond  (BBBY) - Get Bed Bath & Beyond Inc. Report shares are up about 40% so far, helped along by the stock’s 33% gain on Thursday. The move came after the company delivered better-than-expected earnings.

The struggling retailer generated non-GAAP earnings of 50 cents a share, easily beating expectations by 79 cents. Revenue of $2.69 billion sank just 1.1% year over year and beat expectations by $70 million.

Group revenues, the company said, were essentially flat to last year at $2.7 billion, but topped analysts' forecast of a $2.6 billion tally thanks in part to an 89% annual increase in online sales.

The company improved financial performance through its digital transformation, reducing its cost structure, and enhancing financial flexibility, according to CEO Mark Tritton.

Cramer believes that Bed Bath & Beyond will survive post-pandemic because it reinvented its franchise.

Tesla Stock: Buy or Sell?

Tesla  (TSLA) - Get Tesla Inc Report has been looking for a stake up to 10% in South Korean conglomerate LG’s battery operation, LG makes batteries in its LG Chem division, but the battery business is being spun off into a new company - LG Energy Solutions. If the deal happens, Tesla would take a piece of LG Energy Solutions.

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Tesla reported that car deliveries for the past three months set a record of 139,300, as production increased to 145,000 vehicles. Tesla shares are down in trading on Friday.

Cramer tells investors that they will not get a ceiling on Tesla because they layout a 10-year-old road map and people are buying the stock.

Stocks Relying on Stimulus: Buy or Sell?

Stocks were rising in trading Wednesday after Treasury Secretary Steven Mnuchin indicated he expects to reach agreement on a stimulus package with House Speaker Nancy Pelosi, overshadowing worries about a contested election following an acrimonious debate between President Donald Trump and Democratic candidate former vice president Joe Biden.

Cramer doesn't trust anyone in Washington and advises investors to stick to buying stocks that don’t need a stimulus deal such as pharmaceuticals, biotech, and semiconductors. He warned investors to stay away from stocks that need a stimulus deal, including banks and oil companies.

Layoffs are Just Beginning

American Airlines said that it will begin furloughing 19,000 employees and United Airlines will lay off 13,000 workers after lawmakers failed to agree on a coronavirus relief package. But they said they would reverse the cuts if the U.S. government provided funds to the industry in the next few days.

Cramer says that airline layoffs are the “make it or break it” point of the market and that layoffs are not over as many landlords are not getting paid.

None of these stocks is a key holding 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.