Stock Market Today With Jim Cramer: Stimulus For Airlines

Jim Cramer discusses the latest stock market news including the need for a stimulus for airlines, Pfizer's COVID-19 vaccine and the latest on the TikTok deal.

Stocks rose Tuesday after Federal Reserve Chairman Jerome Powell said the U.S. recovery would be weak without additional financial support from the government.

TheStreet's Katherine Ross discussed breaking news in the stock market on Street Lightning. Cramer spoke about the stimulus for airlines, Pfizer's COVID-19 vaccine and the TikTok deal.

Airlines Need Federal Stimulus

Southwest Airlines  (LUV) - Get Southwest Airlines Co. Report on Tuesday announced plans to implement management pay cuts and seek concessions from its labor unions to avoid furloughs and layoffs as federal aid expires. 

Airlines were barred from furloughing or laying off workers until Oct. 1, under the terms of the $25 billion in federal aid they received earlier this year.

While discussing federal aid for airlines, Cramer said Treasury Secretary Mnuchin would like a deal and he's got money for the states too. He added that Speaker Nancy Pelosi also wants a deal of a bigger size which makes sense. 

"But we have not heard from Republican senator Mitch McConnell. I think the issue would be that there are too many Republicans in the Senate who believe that the economy is quite good and there is no need for a stimulus." Cramer's advice was to make it so that the money lasts until we beat the coronavirus pandemic.

Pfizer Stock: Buy or Sell?

European health authorities launched a 'rolling review' of the experimental coronavirus vaccine that drugmaker Pfizer  (PFE) - Get Pfizer Inc. Report is developing with Germany-based BioNTech. 

Cramer said it just means this is business as usual for these vaccines. "I say that because Pfizer's stock is not even up." 

TheStreet Recommends

Cramer said he liked New York-based pharma company Bristol-Myers Squibb  (BMY) - Get Bristol-Myers Squibb Company Report, because of its recent acquisition, which is not linked with COVID-19 at all. 

"They bought MyoKardia and I think its a fabulous acquisition. You still get the 3% yield. They're gonna delever one year slower but MyoKardia is an incredible drug that replaces a very difficult surgery. Its much larger than $13 billion." On Monday, Britsol-Myers Squibb Co. agreed to buy drugmaker MyoKardia Inc. which makes the experimental heart treatment Mavacamten, for around $13.1 billion.

A TikTok Deal in the Offing

A U.S. judge Carl Nichols on Tuesday said he would hold a Nov. 4 hearing on whether to allow the U.S. government to bar transactions with TikTok, a move that would effectively ban the Chinese-owned short-video app's use in the United States, Reuters reported.

On Sept. 27 he had issued a preliminary injunction that barred the U.S. Commerce Department from ordering Apple and Alphabet’s Google app stores to remove TikTok for download by new users. 

Nichols must now decide whether to block the other aspects of the Commerce Department order set to take effect on Nov. 12. 

Cramer said, "We are still waiting for a deal there. It's kind of strange. Maybe this makes it so that there will be a deal. Maybe this puts a timeframe to it that makes sense."

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