Stocks surged Monday as a strong jobs report and other data offered evidence of the economy's improvement.
TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about the surge in Tesla's stock price, GameStop's proposed stock sale and the jobs report data released last week.
Tesla: Buy Or Sell?
Wedbush analyst Dan Ives said the first-quarter totals put Tesla on pace to exceed 850,000 deliveries for the year, a figure that would top last year's record of 499,500 by more than 70%. He lifted his price target on the stock to $1,000 a share.
Cramer said investors should buy Tesla but also cautioned them not to blindly invest in lesser-known EV stocks or companies that make EV parts in the hopes of finding some kind of derivative of Tesla. "Stop looking for the derivative; just go buy Tesla!" said Cramer.
GameStop: Buy Or Sell?
GameStop (GME) - Get Report shares fell sharply in Monday trading after the video game retailer said it plans to sell up to 3.5 million shares of common stock.
Cramer said GameStop has a lot of momentum in the gaming industry as the economy reopens and everybody gets vaccinated. "You can play against each other in a giant gaming hall and there is so much they do, but they need some capital and they're not really hurting the stock, they're doing it at the market which is why it's absurd that the stock is down so much."
The U.S. economy added 916,000 new jobs last month, higher than the forecast of around 675,000, according to data from the Labor Department released on Friday, as the U.S. labor market rebounded sharply amid accelerating vaccine rollouts.
Cramer said the jobs report released last Friday showed lots of people have been hired, but that there's been no wage growth to speak of. "There have been negative wages which is the green light for Federal Reserve chairman Jerome Powell to stay easy. Now it is true there is commodity inflation throughout the system which Powell had flagged when he spoke about keeping interest rates low. And that's what we are getting so don't panic."
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