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Cramer's Mad Money Recap 11/4: Gridlock Is Good for Stocks

Jim Cramer says that the stock market loves gridlock in Washington, which explains why the VIX is so low and stocks are so high.

Don't underestimate the benign nature of this market, Jim Cramer told his Mad Money viewers Thursday. After this week's election results, Wall Street no longer needs to worry about Washington, D.C., Cramer said, and that's great news for stocks.

It may be hard to remember, but just a year ago, investors had a host of worries about what might happen as Joe Biden was sworn in as president. It was largely assumed that Democrats would usher in higher income taxes, higher capital gains taxes and would boost the dividend tax rate. There were fears of a crackdown on drug prices, increased banking regulations and more scrutiny of big tech.

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Many pundits also worried that health insurers would come under fire, billionaires would see higher taxes and interest rates would soar, all of which would lead to diminished stock ownership and an inevitable bear market.

Oh, what a difference a year makes.

For all of the rhetoric in Washington, none of these fears have yet come to pass. And with Republicans seeing strong results in this week's elections, it's clear the Democrats must move even more to the center if they have any hopes of surviving next year's challengers.

Wall Street loves a divided government and endless gridlock, Cramer reminded viewers. That's because the status quo is a known entity with no surprises. After this week, we're likely to see even more gridlock, which explains stocks at all-time highs with the VIX volatility index near its lows.

Executive Decision: Norwegian Cruise Line Holdings

In his first "Executive Decision" segment, Cramer spoke with Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings  (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report, the cruise operator that's kicking back into high gear as the pandemic winds down.

Del Rio said that Norwegian was the first to require that all customers and staff be fully vaccinated. That decision was not only the right thing to do for public health, he said, but is now a competitive advantage. Bookings are the strongest they've ever been as consumers are anxious to get out and have fun.

Norwegian plans to have 100% of its ships sailing again by April 2022 and Del Rio said that sales are strong for next year and 2023 as guest book trips further out into the future.

Many people have cruises on their bucket lists, and with over 500 destinations and a new 180-day cruise, Norwegian can fulfill many people's vacation dreams.

When asked about their environmental initiatives, Del Rio said that for Norwegian, ESG is not just an acronym. They are committed to improving their environmental impact by using the latest technology. Norwegian doesn't want to burn carbon-heavy fuels, Del Rio added, and are doing everything they can to be sensitive to the environment.

Executive Decision: Papa John's

For his next "Executive Decision" segment, Cramer spoke with Rob Lynch, president and CEO of Papa John's  (PZZA) - Get Papa John's International, Inc. Report, the pizza chain that just posted a 12-cents-a-share earnings beat that included a 7% boost in same-store sales. Shares responded by rallying 13.5% to a new all-time high.

Lynch explained that results like these have been two years in the making, but after lots of hard work, plans are all coming to fruition. Product innovation is what keeps people coming back to Papa John's, and customers appreciate how the company has taken care of them with great food and great services throughout the pandemic. That's why its loyalty program now stands at over 22 million members.

Papa John's is not trying to sell the cheapest pizza, Lynch continued. They only sell quality products made from the best ingredients. Papa John's dough is made from just six ingredients, all of which are fresh and never frozen.

Lynch said that staffing will always be Papa John's biggest challenge, but as they build a great team and a great company culture, it's getting easier to retain great people and franchisees. They also have great relationships with third-party delivery partners, which add a lot of value to their operations.

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Executive Decision: Planet Fitness

For his final "Executive Decision" segment, Cramer checked in Chris Rondeau, CEO of Planet Fitness  (PLNT) - Get Planet Fitness, Inc. Class A Report, the fitness chain that delivered blowout earnings, its best in two years, that sent shares soaring up 11.6% to new all-time highs.

Rondeau said as the economy is reopening, people are choosing in-person fitness and all of the winds are now blowing in their direction.

Nearly 80% of the population doesn't have a gym membership, yet 70% of U.S. adults are overweight or obese, Rondeau noted. That's a statistic that not only affects your physical health, but also your mental health. Working out and staying in shape relieves stress and anxiety, he said, which is why Planet Fitness aims to make fitness accessible for everyone, especially beginners.

The pandemic has permanently closed 22% of the gyms in the U.S., and that makes Planet Fitness even more valuable, he said.

This Way to the Metaverse

In his "No Huddle Offense" segment, Cramer told viewers not to dismiss the metaverse just because Facebook, now called Meta,  (FB) - Get Facebook, Inc. Class A Report, is involved.

While virtual reality has never really taken off, Cramer said he's a believer in the metaverse. Not because of Facebook, however, but because of all of the other smart people that are also working to make the metaverse a reality.

Chipmaker Nvidia  (NVDA) - Get NVIDIA Corporation Report is making chips to power the metaverse, for example, and Qualcomm also mentioned the Metaverse in its conference call this quarter. Apparel maker Ralph Lauren  (RL) - Get Ralph Lauren Corporation Class A Report is actively working on virtual ways for customers to try on their clothes, and Take-Two Interactive  (TTWO) - Get Take-Two Interactive Software, Inc. Report will be bringing lots of new entertainment to the metaverse.

So while it's easy to dismiss the metaverse due to Mark Zuckerberg's arrogance and Facebook's attempts to divert attention from a growing list of scandals and social improprieties, it's a lot harder to dismiss all of the smart people that are also working on this technology.

Lightning Round

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

Himax Technologies  (HIMX) - Get Himax Technologies, Inc. Sponsored ADR Report: "You want to step up and buy Marvell Technology MRVL."

Matterport MTTR: "This is a small Adobe Systems  (ADBE) - Get Adobe Inc. Report so I'll recommend you buy the big Adobe."

Coupang  (CPNG) - Get COUPANG, INC. CLASS Report: "I'm drawn to this one, but I prefer Sea Ltd.  (SE) - Get Sea Ltd. (Singapore) Sponsored ADR Class A Report. That's the one you want to be in."

Bank of America  (BAC) - Get Bank of America Corp Report: "Hold those shares and when it hits $45, you buy more."

The Container Store  (TCS) - Get The Container Store Group, Inc. Report: "This is a tough one. It just had a 30% move. It needs to pull back a little bit."

iStar  (SGU) - Get Star Group LP Report: "I think they're very good and it's an inexpensive stock."

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