Stocks in the Nasdaq rose Wednesday as tech shares rebounded following investor moves earlier this week into more cyclical names that would benefit from an economic recovery following a breakthrough on a coronavirus vaccine.
The Dow Jones Industrial Average rose 82 points, or 0.28%, to 29,502, the S&P 500 gained 0.8% and the Nasdaq was up 1.61% as pressure eased on the tech sector.
TheStreet's Katherine Ross discussed breaking news in the stock market. Cramer spoke about Pfizer CEO Albert Boula's stock sale, ServiceNow and what transition of power at the White House means for markets.
Pfizer: Buy Or Sell?
Pfizer (PFE) - Get Report said Wednesday they have struck a deal to provide 200 million doses of their Covid-19 vaccine candidate to the European Union, marking the largest order for the potential vaccine to date.
At the same time, its chief executive Albert Bourla reportedly sold 62% of his shares in Pfizer on Monday, part of a predetermined plan adopted on Aug. 19 to adhere to insider trading laws.
Cramer said it's an ill-advised thing to do to put a plan like that in. "It's a safe harbor and Rule 10b5-1 certainly allows that. He's not going to get prosecuted for what he did but it's a very sub-optimal thing to have one of those plans in."
ServiceNow: Buy Or Sell?
Workflow-software company ServiceNow (NOW) - Get Report beat Wall Street's earnings expectations for the third quarter. The company reported earnings of $1.21 a share, up from 99 cents a share a year ago and ahead of the Zacks estimate of $1.03. Revenue rose 31% to $1.09 billion, topping estimates of $1.06 billion.
Cramer said it was time to take a stand on high valued stocks exemplified by companies like ServiceNow. "It's time to buy the stock. That lead of 24 points this morning even on a 5000 share volume holds."
Transition of Power
President Donald Trump’s campaign filed a lawsuit in Michigan on Wednesday as part of its long-shot legal strategy to upend Joe Biden’s Nov. 3 election win. Trump has declined to concede the election to Biden and is lodging a flurry of lawsuits in pivotal states.
Cramer said we do need to worry that the president is so adamant that he is not going to get kicked out of the White House. "He could mess with the electoral college. The Attorney General could say maybe it's a systemic issue in some of these states and he'll pound the votes and delay the electoral college. At a certain point, the president could say I am willing to concede that Biden will take over but I want it to be known forever that I actually won. So far, he's got AG Barr and the Senate completely on his side. But the route to defend the will of the people is not easy."
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