Stocks traded mixed Tuesday as investors looked past an uptick in U.S. consumer inflation and health officials recommended a pause in the use of Johnson & Johnson's coronavirus vaccine following rare clotting cases.
TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about the temporary suspension of J&J's COVID-19 vaccine, his top two industrial stock picks and markets on Tuesday.
Johnson & Johnson: Buy Or Sell?
The Food and Drug Administration and the Centers for Disease Control and Prevention on Tuesday called for an immediate pause of Johnson & Johnson's (JNJ) - Get Johnson & Johnson Report single-dose coronavirus vaccine after six people in the U.S. developed a rare blood clotting disorder.
The White House said this pause will not affect the national rollout of vaccines.
A few weeks back J&J stock was hit when workers at Emergent Biosolutions (EBS) - Get Emergent Biosolutions Inc. Report, one of J&J's supply-chain partners, erroneously used ingredients used in the vaccine developed by rival drugmaker AstraZeneca (AZN) - Get AstraZeneca PLC Report.
Cramer said cases of blood clots are reported even after people take the flu vaccine. "Blood clots are, unfortunately, just a part of life."
"J&J has been an asterisk here. I didn't know they had outsourced everything in America to Emergent Biosolutions. I thought they were making some of the vaccines themselves...They can't get the Emergent Bio facility open because the FDA is taking a hard line with them," Cramer said.
Industrial Stock Picks
Cramer said the opening of the world is very significant. "Honeywell has got enough in healthcare, enough in the office of climate controls and then when airplanes come back they will be unbelievable."
Markets on Tuesday
Cramer said people are focused on Johnson & Johnson and what it means for the market. "I am not as concerned as others," he said.
Cramer added that a lot of people are trying to figure out what to do. "They are worried about Coinbase and how big it's going to be. They are worried about new SPACs being valued at crazy valuations. There is a wonder and worry about speculation."