Stocks rose Tuesday as Janet Yellen, President-elect Joe Biden's nominee for Treasury secretary, told Congress that lawmakers must do more to lift the U.S. economy out of the recession brought on by the coronavirus pandemic.
TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about how to trade Netflix ahead of earnings, expectations from Yellen and Gensler and markets on Tuesday.
Netflix: Buy Or Sell?
Netflix (NFLX) - Get Netflix Inc. Report will report quarterly earnings after markets close on Tuesday. The streaming giant is expected to report adjusted net income of $707.1 million, or $1.35 a share, on revenue of $6.6 billion.
Cramer said he would like to own half of Netflix stock now and a half after it comes down because the stock has a tendency to react to subscriber growth numbers. "Their last quarter was not that good. They do a trendline analysis of what has happened. A lot of people feel that Netflix has been left behind by Roku (ROKU) - Get Roku Inc. Report and Disney (DIS) - Get The Walt Disney Company Report and I think that's silly. It's a worldwide phenomenon and it's doing well."
Joe Biden's pick for Treasury secretary Janet Yellen, testified in her nomination hearing Tuesday morning, urging lawmakers to 'act big' on the next coronavirus relief package with borrowing costs so low.
Cramer said he expects an attitudinal change from Yellen and Gary Gensler who will now be in charge of the Securities and Exchange Commission. "I want them to be able to show us what can happen and be very transparent and very honest. And the latter has been in short supply."
Markets On Tuesday
Cramer said the market is all over the map. "Once again there is an upward bias to technology stocks, particularly semiconductors. We bought some Advanced Micro Devices (AMD) - Get Advanced Micro Devices Inc. Report this morning which is down a lot compared to Intel (INTC) - Get Intel Corporation Report. The semiconductors stocks that they [investors] are buying have to do with Apple (AAPL) - Get Apple Inc. Report and industrials."
"On the other side, we are seeing retailers like Costco (COST) - Get Costco Wholesale Corporation Report and Walmart (WMT) - Get Walmart Inc. Report that are down and you get a sense that they don't do any better if the economy reopens."
"Bank stocks are down a lot but I think that's just profit-taking. And then there is this bizarre undercurrent to like certain healthcare companies."
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