Stocks rose Monday as Wall Street rebounded from its worst month since March as investors prepared for a busy week with the presidential election, a Federal Reserve policy meeting and the U.S. jobs report.
The Dow Jones Industrial Average jumped 451 points, or 1.71%, to 26,953, the S&P 500 rose 1.34% and the Nasdaq gained 0.38%.
TheStreet's Katherine Ross discussed breaking news in the stock market. Cramer spoke about Clorox stock and the pandemic, how investors should approach election week and why Monday's stock rally could be troublesome.
Clorox: Buy Or Sell?
Clorox (CLX) - Get Report posted stronger-than-expected first-quarter earnings Monday, and boosted its full-year profit outlook, as the surge in clean products sales through the coronavirus pandemic continued to support the group's top and bottom line.
Clorox said diluted earnings for the three months ending in September, the group's fiscal first quarter, were pegged at $3.22 per share, more than double last year's total and well ahead of the Street consensus forecast of $2.32 per share.
Group revenues, Clorox said, rose 27% to $1.92 billion, again topping analysts' estimates of a $1.763 billion tally.
Cramer said Clorox is a pantry stock as the pandemic surges again. "They have divisions like charcoal, clean water and people like that. They also have a division about cleaning things and Clorox is extraordinary. This stock had started going down because people felt the pandemic is going to reach a conclusion and everybody has all the Clorox they need. Turns out the pandemic is in another wave and so all the companies that were on call before are back. This is a pantry stock and everybody understands that Clorox wipes is a very viable thing to have."
Don't Sell During Election Week
Investors are hoping for a definitive result in the presidential race, for clear control of the Senate and House by the same major party. However, a contested election could further ramp up uncertainty, which could naturally heighten market volatility.
Cramer said as we approach election week, don't sell your stocks you should be buying. "It is so hard not to sell. I'm looking at some stocks that are up ridiculously. Waste Management (WM) - Get Report is a good example. We bought some shares of Waste Management because we heard over and over again that Waste Management was going to be a miss. Waste Management not only didn't miss but made it and the stock is up to four bucks. Maybe this is the first day of a very big rally and that's certainly possible. You don't want to lose a stock just because it's up a lot."
Monday Stock Rally Troublesome
Major U.S. stock indexes jumped Monday ahead of an election that will determine the government’s response to the coronavirus pandemic and the economic slump.
Volatility has been at a four-month high in the days leading up to the U.S. presidential election, as the threat of surging coronavirus cases compounds market uncertainty and detracts from a slew of better-than-expected earnings results.
Cramer said he was troubled by the stock market action on Monday. "We're pretty troubled by the action here because the companies that should be doing well like Amazon are down really badly. The companies that are going up are companies that are going into recession, or alternatively, a belief that the election is just going to be uncontested. In other words, there is good news feeling. Sort of like what was going on last half hour on Friday where the market rallied really big and people didn't pay attention to it."
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