The market has already forgotten Friday's good news on the COVID front, Jim Cramer told his Mad Money viewers Monday. Instead, investors chose to focus on a new litany of worries to start the week. Fortunately, as stocks head lower, the bargains become easier to spot.
What has investors worried? Well, for starters, Cramer said, there's a downside to the democratization of investing, and that's skittish investors. This year's flood of new investors doesn't know what a selloff looks like, he said, and they certainly haven't seen the late-September seasonal decline.
Over on Real Money, James "Rev Shark" DePorre writes that Monday was "one of those days where the action in individual stocks was much worse than what the indexes were indicating." Read more of what he has to say about the action in the Nasdaq 100, Facebook and the ARK Innovation ETF ARKK, and get his trading insights.
The second thing that has investors rattled are rising oil and natural gas prices. Rising crude prices typically means the economy is expanding, but only to a point. When prices get too high, they put a damper on our entire economy.
Third, the tech sector is crumbling, led by Facebook's (FB) - Get Facebook, Inc. Class A Report 4.9% decline. Cramer said the social media giant has become a pariah after this latest round of leaked memos, not to mention Monday's outage of Facebook, Instagram and WhatsApp.
Making matters worse, there are still too many tech IPOs, deals that need to get pulled to lessen the supply of shares.
Finally, Cramer said investors are worried about Washington, and the world, amidst gridlock over the debt ceiling and infrastructure and rising tensions between Taiwan and China.
All of these factors have made investors forget all about Merck's (MRK) - Get Merck & Co., Inc. (MRK) Report new COVID treatment on Friday, Cramer concluded. That means we're likely to see more selling as the week progresses.
Executive Decision: IBM
In his first "Executive Decision" segment, Cramer spoke with Arvind Krishna, chairman and CEO of IBM (IBM) - Get International Business Machines (IBM) Report, on the heels of the company's annual analyst meeting. Shares of IBM are up 20% in the past year.
Krishna said IBM has entered into a virtuous cycle, one where free cash flow provides the revenue needed to drive growth, which in turn provides even more free cash flow. The company expects to generate $35 billion in free cash over the next three years.
IBM continues to be a leader when it comes to technology consulting, Krishna added. In the case of Delta Air Lines (DAL) - Get Delta Air Lines, Inc. Report, IBM was able to provide a hybrid cloud solution that will move 90% of Delta's current applications to the cloud, powered by Amazon Web Services (AMZN) - Get Amazon.com, Inc. Report, RedHat and IBM's own applications.
IBM doesn't go it alone, Krishna said. The company partners with the best in the business including Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report, Amazon, Salesforce (CRM) - Get salesforce.com, inc. Report and Box (BOX) - Get Box, Inc. Class A Report, just to name a few. IBM is an ecosystem, he said, so even if they share revenue in some areas, there will always be a services opportunity for IBM.
Executive Decision: McCormick
For his second "Executive Decision" segment, Cramer also spoke with Lawrence Kurzius, chairman and CEO of spice maker McCormick (MKC) - Get McCormick & Company, Incorporated (MKC) Report, the popular pandemic stock that has fallen victim to rising inflation.
Kurzius said that consumers continue to crave flavorful foods and McCormick's spices are the best way to get that flavor at home. McCormick is now the No. 1 maker of hot sauce, a category that's on track to surpass ketchup as America's favorite condiment.
Consumers are also looking for natural ingredients and clean labels, Kurzius added, something McCormick continues to provide. His company also offers a healthy dose of fun, as evidenced by their popular National Taco Day campaign that received 700 million impressions and over 5,000 applicants for their honorary Ambassador of Taco Relations position.
Turning to the topic of inflation, Kurzius noted that while McCormick has been able to deliver 20% sales and earnings growth since the pandemic began, the amount of inflation they're seeing is unprecedented. It spans from ingredients to packaging to labor and transportation, he said, and they're doing everything they can to keep it under control.
Executive Decision: Paychex
For his final "Executive Decision" segment, Cramer once again checked in Marty Mucci, president and CEO of Paychex (PAYX) - Get Paychex, Inc. Report, the nation's second largest payroll processor. Shares of Paychex are up 23% so far this year.
Mucci says Paychex just delivered another fantastic quarter that included 16% revenue growth. He said clients are rebounding and employees are starting to come back to work. When it comes to small businesses, Mucci added that growth is moderating, but is still quite strong as the recovery continues.
When asked about the ongoing labor shortages across the nation, Mucci explained that the lack of workers has been caused by a combination of early retirements, parents staying at home with their children and ongoing safety concerns about the workplace. He speculated that many of these shortages, particularly related to home services and repair, will likely continue for the foreseeable future.
Is Dimon Missing Out on Crypto?
In his "No Huddle Offense" segment, Cramer opined on Jamie Dimon's recent comments panning cryptocurrencies. He said the JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. (JPM) Report CEO is an excellent executive, but he's once again missing the mark.
Cramer noted that Dimon is a great banker, but he completely missed the Square (SQ) - Get Square, Inc. Class A Report and PayPal (PYPL) - Get PayPal Holdings Inc Report revolution years ago and now seems destined to repeat his mistakes with crypto.
According to Dimon, crypto is the Wild West, with no intrinsic value and nonexistent regulation. But Cramer noted that there are lots of asset classes that don't trade on their intrinsic values and when it comes to regulation, crypto should be regulated.
The opportunity that Dimon doesn't see, according to Cramer, is in stable coins. Currently, stable coins are led by Tether, a dubious coin backed by unknown Chinese securities. Tether has already run afoul of regulators and is currently banned in New York. Cramer said JP Morgan could own the stable coin market and help legitimize crypto in the process, if only Dimon saw the opportunity in front of him.
Here's what Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Monday evening:
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