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Cramer's Mad Money Recap: American Express, UPS, Honeywell

Jim Cramer says buyers have all but forgotten the Fed, and are hunting for bargains ahead of the Russell 2000 rebalancing.
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The artificial forces that drove the market lower last week seem to have disappeared this week, Jim Cramer told his Mad Money viewers Monday. Traders have all but forgotten about inflation and the Fed, Cramer said, and that means tomorrow's session is likely to continue today's rally.

What's changed between Friday and today? Only the attitude of the buyers. Last week, traders loathed the Fed's comments on inflation, but today they've come to terms with the fact that even with a little inflation, things are still looking pretty good for our economy.

That means there are still a lot of bargains to be had, especially on Friday, when the Russell 2000 index will rebalance, creating lots of opportunities. This Friday, like last Friday, will be your chance to buy some great companies, like UPS  (UPS)  which just reported strong earnings.

Investors can also circle back to American Express  (AXP) , which also told us things were great last week. Cramer also endorsed companies like Honeywell  (HON)  and Lockheed Martin  (LMT) .

Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Executive Decision: Boxed

In his first "Executive Decision" segment, Cramer spoke with Chieh Huang, co-founder and CEO of Boxed, the e-commerce grocery platform that will soon come public via a reverse merger with Seven Oaks Acquisition SVOK. The SPAC deal is valued at $900 million.

Huang admitted that there are some trade-offs coming public via SPAC rather than a traditional IPO, but in the end, he said a SPAC was the best choice for Boxed. His company will use the proceeds from the deal to boost marketing and awareness and fund their expansion efforts with new markets and assortments of products.

For those who might not have heard of Boxed, the company provides groceries in bulk to both consumers and businesses. Boxed has also opened their software platform to other enterprise retailers, making them a SAAS software provider as well.

When asked about private label, Huang explained that Boxed has about 100 items under its own private label, and those 100 items account for 15% to 20% of sales.

Huang recalled his company's beginnings in a garage in New Jersey. He said both he and his family have been able to live the American dream and he's very grateful.

Executive Decision: Cerence

For his second "Executive Decision" segment, Cramer also spoke with Sanjay Dhawan, CEO of Cerence  (CRNC) , the automotive AI technology company that powers over 320 million vehicles.

Dhawan explained that Cerence was just one of many divisions inside of Nuance Communications, but as an independent company, they've been able to focus and grow substantially. Nuance has since agreed to be acquired by Microsoft  (MSFT)  for $20 billion. Cerence was spun off from Nuance in 2019.

Cerence provides voice assistant technology, acting as a hands-free copilot for drivers. Dhawan said their most used applications are around navigation, phone interactions and music search capabilities. They aim to create a seamless experience both inside and outside of the car.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

These Pandemic Wins Still Have Strength

If your company made a killing during the pandemic, it's become toxic in this market, even if sales are still through the roof. Case in point: Thor Industries  (THO) , which peaked at $146 a share in May, only to slide lower ever since. Shares now trade for less than $100. The same is true with boat maker Brunswick Corp.  (BC) , which peaked at $115 in May and has also fallen below $100.

Investors seem to think that this is the last great quarter for these companies and that demand will vaporize once travel and entertainment fully reopens. But nothing could be further from the truth as both companies have multiyear backlogs.

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TheStreet Recommends

The same pattern can be seen in companies from Campbell Soup  (CPB)  to Take-Two Interactive  (TTWO) , but Cramer said the most frustrating is Walt Disney Co.  (DIS) . Disney soared last year on the success of Disney+, but now, the company has movies, theme parks and cruises to look forward to.

Cramer said he's still a fan of all of these stocks, along with Southwest Airlines  (LUV) , Delta Air Lines  (DAL)  and Airbnb  (ABNB) .

Has WallStreetBets Lost its Mojo?

In his "No Huddle Offense" segment, Cramer said the WallStreetBets crew may have finally lost its mojo. After the group's big initial win in GameStop  (GME) , every subsequent recommendation has only lost people money.

Cramer said the WallStreetBets crew doesn't have enough firepower to prop up more than one or two stocks at a time, which is why their attempts to recommend Wendy's  (WEN) , Corsair Gaming  (CRSR) , Clean Energy Fuels  (CLNE)  and Petco  (WOOF)  has all be very short-lived. If you bought on these recommendations, you've been annihilated.

Even GameStop continues to be called into question, as the company has yet to figure out a plan to save itself beyond its ailing retail business.

Everyone loves a winner, Cramer concluded, but when you start losing people money, they stop paying attention pretty quickly.

Lightning Round

Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:

Sesen Bio  (SESN) : "Take some profits off the table."

Louisiana-Pacific Corp.  (LPX) : "I want to stick with Louisiana Pacific."

Gevo  (GEVO) : "People need to make room in their portfolio for this stock."

Nikola  (NKLA) : "No, thank you. Life is too short."

Marathon Oil  (MRO) : "I think it's OK. I prefer Chevron  (CVX)  but you'll be OK in that one too."

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At the time of publication, Cramer's Action Alerts PLUS had a position in UPS, HON, MSFT.