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Stock Market Today With Jim Cramer: Microsoft Earnings Reaction

Jim Cramer discusses the latest stock market news including the earnings of Microsoft, GM and Boeing.

Stocks fell sharply Wednesday as Wall Street retreated amid worries about the rising number of coronavirus infections across the globe and the pandemic's impact on economic activity.

TheStreet's Katherine Ross discussed breaking news in the stock market. Cramer spoke about the earnings of Microsoft, GM and Boeing.

The Dow Jones Industrial Average fell 844 points, or 3.08%, to 26,618, the S&P 500 declined 2.98% and the Nasdaq slumped 3.01%.

The S&P 500 was down for a third straight session, and the Dow was sliding for a fourth.

Microsoft: Buy Or Sell?

Microsoft  (MSFT)  shares slipped on Wednesday falling in line with a broader selloff on Wall Street, even after the tech giant posted stronger-than-expected first-quarter earnings thanks to surging growth in its cloud business.

Cramer said Microsoft is a strange bird. "Everyone decided it was a must-have stock and then the narrative became that it was multiple lines that they were forecasting. They are going to look at what people are estimating and then say here is what we can make. It is a company that could have issued guidance that was far in excess of what analysts estimated. But they have chosen to under-promise and over-deliver."

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GE: Buy Or Sell?

GE  (GE)  posted a surprise third-quarter profit Wednesday while forecasting solid industrial free cash flows for the final months of the year, sending shares higher in premarket trading. 

Cramer said healthcare and power together can offset aviation provided the cutbacks continue." The cutbacks will be brutal. But I like what's happening there. But there are plenty of people who still say their earnings are manufactured."

Boeing: Buy Or Sell?

Boeing  (BA)  posted a narrower-than-expected third-quarter loss Wednesday, while unveiling further job cuts, as the planemaker continues to struggle to adapt to changes in the global aviation market brought by the coronavirus pandemic.

Boeing will reduce its overall headcount to under 130,000 by the end of next year after the planemaker posted its fourth consecutive quarterly loss.

Cramer said, "It's about the Max. It's not about the cutbacks. They still could cutback a lot of people. If you get the Max approval and you get the vaccine. A company like Boeing has to be thinking about the next three years and not just the next three months. And the demand for Max before the accidents and before Covid was incredible. The thing that they are stuck with is that the Max has still not been approved. If you approve the Max their stock could go dramatically higher."

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