Stocks ended mixed Friday after a report showed September retail sales surged 1.9% and as consumers' sentiment improved in October as their expectations of economic prospects brightened.
TheStreet's Zev Fima discussed breaking news in the stock market on Street Lightning. Cramer spoke about the valuation of Fastly, stock picks that could win or lose in the election and why Pepsi, Starbucks and Take-Two are the stocks to watch after the election.
Fastly: Buy Or Sell?
Software firm Fastly's (FSLY) - Get Report stock was down 25% on Thursday after the company updated its outlook for the third quarter, saying it now expects revenue between $70 million and $71 million, down from a prior outlook of $73.5 million to $75.5 million.
“Due to the impacts of the uncertain geopolitical environment, usage of Fastly’s platform by its previously disclosed largest customer did not meet expectations, resulting in a corresponding significant reduction in revenue from this customer,” Fastly said in a statement.
Cramer said to keep in mind that valuations need to be set correctly and that’s the lesson at Fastly. "Everything had to go right at Fastly. Their stock was up $20 in one day and that’s crazy. You can let it come in but you should only buy it when it's running so you get bare prices." Cramer added that Nio, Fisker, Tesla that’s what makes the market exciting and a lot of people want to own them.
Biden Win Huge For Boeing
Trump is not a fan of Boeing (BA) - Get Report. "It may be because of lack of knowledge or perhaps he thinks that they are way too close to China because that's where the orders are. I would regard a Biden win as a huge plus for Boeing. And it will come most likely at the time when Max is certified, we open the Chinese borders, etc. Boeing is a Biden stock for certain," Cramer said.
Meanwhile, a Biden victory may help discount retailer Costco (COST) - Get Report, Cramer said. "Costco has a special dividend possibility in its pocket. If Biden wins the company might pull a trigger on it sooner rather than later."
Cramer said pharmacy retail chain CVS (CVS) - Get Report is likely to do badly under either regime. "CVS will go lower with a Biden win because he will be tougher on the health insurers and demand that they eat some of the rising healthcare costs. It would do better under Trump because it needs low corporate taxes and a laissez-faire approach to healthcare."
3 Stocks to Watch After The Election
Cramer said Pepsi (PEP) - Get Report may suffer under a Biden victory. "Pepsi should be bigger in China but who would want Pepsi to do that under the Trump regime. No real winner there. I do worry that Pepsico is one of those serial boosters of its dividend and a large buyer of the stock. That might be put on hold with a Biden victory. Pepsi could also suffer the impact of higher tax rates under the Biden administration," said Cramer.
After the election is over retailer Starbucks (SBUX) - Get Report doesn't have to fear a boycott in China said, Cramer. "Sales of Starbucks are coming back pretty quickly in China. In China they will no longer have to fear a boycott. Something that helped the stock down to the 50s from the 80s not too long ago. Starbucks is a China story and it can have far more stories in it than in America," Cramer said.
Publisher of popular games like Grand Theft Auto, Take-Two (TTWO) - Get Report may face problems if Trump is re-elected because they also produce NBA 2K. NBA players have been outspoken against the Trump administration.