Dow futures edges higher as Wall Street tries to snap a three-day losing streak Friday after Pfizer CEO Albert Bourla believes they will know if its vaccine is effective by the end of October.
In the last episode of Mad Money, Jim Cramer said that despite a stimulus stalemate and COVID-19 woes, the Europe-led selloff turned into a buying opportunity on Wall Street.
TheStreet's Katherine Ross and Cramer are on Street Lightning talking about Tesla price cuts, Walgreens stock, and the possibility of a U.S. lockdown.
Tesla Stock: Buy or Sell?
Tesla said Tuesday it would be reducing prices on its entry-level Model S available for delivery by $3,000 to $71,990. It also reduced its Tesla Model S Performance Model to $91,990 from $94,990.
Cramer thinks that Elon Musk is trying to be Henry Ford and is one more step closer to mass production as he seeks to lower prices for everything. He added that Tesla, NIO, and FISCAR are “what’s making this market exciting.”
Walgreens Stock: Buy or Sell?
Walgreens Boots Alliance (WBA) - Get Walgreens Boots Alliance Inc Report posted stronger-than-expected fourth-quarter earnings Thursday and said profits in the coming year should continue to grow despite the impact of the coronavirus pandemic. Group revenues, Walgreens said, rose 2.3% to $34.7 billion, just ahead of analysts' estimates of a $34.37 billion tally.
Comparable U.S. store sales for the group's retail pharmacy business rose 3.6%, Walgreens said, with total revenues also up 3.6% to $27 billion.
Cramer thinks that the earnings were good as prescriptions went up. However, he thinks investors should buy CVS (CVS) - Get CVS Health Corporation Report stock and added that UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated Report stock is a buy.
The U.S. Will Not Shut Down Again
Coronavirus cases continue to surge in Europe with the U.K. announcing tougher restrictions on the city of London beginning midnight Friday and France declaring a state of emergency.
The British government said Thursday it will move to a “high” alert level from its current “medium” alert level. Globally, 38,564,176 coronavirus cases and 1,092,968 related deaths have been reported to date, according to Johns Hopkins.
Cramer said that the country has no mandate to shut down because no state government is going to get in the way of the openings, even though they might object to bars and restaurants. “But there is no way that our country is shutting down again,” he added.
Cramer is also optimistic about therapeutics such as Regeneron (REGN) - Get Regeneron Pharmaceuticals, Inc. Report and Eli Lilly (LLY) - Get Eli Lilly and Company (LLY) Report to slow down the impact of the pandemic by decreasing the viral load.