Stocks fell Friday and retreated from record highs as a spike in coronavirus infections and the possibility of stricter lockdowns dampened expectations of more economic support from the Biden administration.
TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about Google's plan to disable search operations in Australia and IBM, Intel and CSX earnings.
Alphabet: Buy Or Sell?
Alphabet-owned (GOOGL) - Get Report Google has said it will disable its search engine in Australia if it’s forced to pay local publishers for news - something that is currently being contemplated by lawmakers as a way to protect local media providers.
Google Australia Managing Director Mel Silva said a proposed law "remains unworkable."
Cramer said Google is trying to say we're not paying you because we don't need you. "These Australians are playing with fire because they're lucky they are not charged [by Google]. People understand that Big Tech is going to have its way because they can say, who says you have to be on Google, there's plenty of other outlets. So, what looks like a monopoly but isn't and that's always going to win."
IBM and Intel
Cramer said he's watching people taking a cue from IBM and Intel. "This particular quarter, [with] Intel saying we have seen the lead in AMD (AMD) - Get Report and we'll come back in 2023. IBM saying it's going to be a little while before we are able to turnaround. IBM's fourth-quarter did not have good numbers. What's happening is there is an oversubscription for the dicier stuff, for the SPACs, for companies that sell at very absurd multiples. And then there is much less interest in the companies that are inexpensive like IBM and Intel, in part because they are not so perfect."
CSX Corp: Buy Or Sell?
Cramer said investors should buy rail stocks like CSX. "If you think the economy is going to come back then you buy rail stocks like Union Pacific or CSX. You have to look at cargos and all the cargos that matter are still negative. What they carry has to do with home building and autos and those are two of my hottest sectors."