Stocks turned higher Thursday as encouraging data on the U.S. economy spurred investors to buy recently beaten-down shares.
TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about Rite Aid earnings, stocks to buy during earnings season and markets on Thursday.
Rite Aid: Buy Or Sell?
Shares of RiteAid (RAD) - Get Rite Aid Corporation Report fell in premarket trading after the drugstore chain lowered guidance for fiscal 2021, blaming a "soft" cough, cold, and flu season.
Same-store sales fell about 5.6% in Rite Aid's fiscal fourth quarter, related mostly to a decline of nearly 37% percent in cough, cold and flu-related categories.
The company expects to report adjusted earnings before interest, taxes, depreciation, and amortization of $425 million to $435 million for the fiscal year ended Feb. 27, lower than the previously estimated Ebitda of $490 million to $520 million.
Cramer said masks lower the odds and that's why the cold and flu season was so benign. He added that Rite Aid was not a buy.
Stocks To Buy During Earnings Season
Cramer said at this stage you have to buy stocks for companies that are going to have better-than-expected earnings that might include FAANG stocks that could be a bargain right now.
FAANG stocks refer to the acronym created by Cramer including Facebook (FB) - Get Facebook, Inc. Class A Report, Apple (AAPL) - Get Apple Inc. (AAPL) Report, Amazon (AMZN) - Get Amazon.com, Inc. Report, Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report and Google (Alphabet) (GOOGL) - Get Alphabet Inc. Class A Report.
Markets on Thursday
Cramer said there is a big give-up going on in the markets today. "People are starting to recognize that there is a profound disappointment in stocks as an asset class and accepting it. I don't want them to leave. I want them to be in better stocks."