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Stock Market Today With Jim Cramer: Don't Buy Cannabis Stocks Now

Jim Cramer discusses the latest stock market news, including how to trade Chewy post-earnings, cannabis stocks and markets on Wednesday.

Stocks rose Wednesday led higher by tech shares and Treasury yields steadied as investors weighed the possibilities of higher inflation and higher taxes ahead of details about President Joe Biden's infrastructure plan.

TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about how to trade Chewy post-earnings, cannabis stocks and markets on Wednesday.

Chewy: Buy Or Sell?

Shares of Chewy  (CHWY) - Get Chewy, Inc. Class A Report rose after the online pet-care provider reported a surprise profit for its fiscal fourth quarter as revenue nearly doubled amid surging online orders.

Chewy founder Ryan Cohen is expected to lead video game retailer GameStop's  (GME) - Get GameStop Corp. Class A Report e-commerce strategy. Cohen was appointed to the company's board in January after he pushed the company to focus on a digital overhaul.

Cramer said to buy Chewy and hold it. "It's a good stock to own if you believe in the humanization of the pet theory."

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Cannabis Stocks

New York Gov. Andrew Cuomo Wednesday signed a bill legalizing marijuana for recreational use after the state's senate voted to legalize possession of small amounts and eventually allow sales to people over the age of 21.

Cramer said it was time to do some trimming of the cannabis stocks in the portfolio. "Every time a state has legalized cannabis, it's ended up being a bust to buy these stocks. I don't think you'll suddenly get a deluge of activity." 

Markets on Wednesday

Semiconductor giant Nvidia and software company Adobe among others posted strong quarterly earnings in February and March respectively but went relatively unnoticed by investors at the time.

Cramer said investors are buying stocks that had great quarters like Adobe  (ADBE) - Get Adobe Inc. Report, Service Now  (NOW) - Get ServiceNow, Inc. Report, Snowflake  (SNOW) - Get Snowflake, Inc. Class A Report, Nvidia  (NVDA) - Get NVIDIA Corporation Report but nobody cared.

None of these are key holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.