We have two economies, Jim Cramer reminded his Mad Money viewers Friday. As demonstrated in the stock market, some stocks are vulnerable to trade war news, others are not. And, Cramer said, he doesn't think there's going to be a quick and easy trade deal anytime soon. The domestic economy remains strong, but the international economy continues to struggle. The debate over which side is right will continue into next week, Cramer said, as he laid out his game plan for next week's action.
On Monday, Cramer said he'll be watching out for two things. The first is news out of Hong Kong, where protests continue. The second will be any update on iPhone sales for launch weekend. Cramer continued to recommend owning Apple (AAPL - Get Report) .
Next, on Tuesday, we hear from CarMax (KMX - Get Report) and AutoZone (AZO) , along with Nike (NKE - Get Report) and uniform supplier Cintas (CTAS - Get Report) . Cramer was a buyer of AutoZone on any weakness and also recommended Cintas.
Wednesday brings earnings from KB Home (KBH - Get Report) , which is at a 52-week high, along with analyst meetings for Best Buy (BBY - Get Report) and VF Corp (VFC - Get Report) . Cramer was a fan of KB Home, now that the Federal Reserve has lowered interest rates, and of VF, which has seen strong footwear sales.
Earnings continue on Thursday with Accenture (ACN - Get Report) , ConAgra Foods (CAG - Get Report) and Micron Technologies (MU - Get Report) . Cramer urged investors to stay away from Micron, but was bullish on Accenture.
Cramer and the AAP team are hopeful that a meaningful and enforceable trade deal between the world's two largest economies can be reached. 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.
Chinese Consumers Step Up
Sometimes truth is stranger than fiction, Cramer told viewers. That's certainly been the case with our ongoing trade war, which has produced one anomaly after another.
When tariffs were first levied against Chinese steel, it was expected that steel prices would skyrocket. Instead, they collapsed. Sales in China for Procter & Gamble (PG - Get Report) were also supposed to take a hit, but instead, revenues continue to grow.
In the restaurant space, Starbucks (SBUX - Get Report) continues to build new stores to keep up with demand, while Yum China (YUMC - Get Report) is seeing 4% same-store sales growth. Nothing is more American than KFC, Cramer added.
When the shorts bet against Estee Lauder (EL - Get Report) , they were quickly proven wrong, as Asia was the company's best region this quarter. That's why Cramer said he's not worried about Apple -- the iPhone 11 should be priced to provide a great value for Chinese consumers.
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.
Some stories are a lot more compelling than others. In the pharmaceuticals space, both Bristol-Myers Squibb (BMY - Get Report) and AbbVie (ABBV - Get Report) are trying to spur growth by making huge acquisitions, but one makes a lot more sense than the other.
Bristol-Myers is buying Celgene (CELG - Get Report) , a deal that's expected to close by the end of this year. Many investors balked at the price Bristol offered for Celgene, but Cramer estimated the acquisition is worth $120 billion when you add in the company's pipeline and synergies as a combined entity.
AbbVie's acquisition is Allergan (AGN - Get Report) , for $63 billion. This deal is expected to close in early 2020. AbbVie's goal is to diversify and spur growth, Cramer said, and the company will be getting a lot of hot products including Botox, medical aesthetics, eye care and more.
So which deal makes the most sense? Cramer said he loves both deals, but AbbVie is his favorite, as the company overall is in better shape and pays a 6% dividend versus Bristol-Meyers at 3.3%. Additionally, AbbVie is paying for Allergan's current products, which will show instant gains, versus Bristol-Meyers, which is paying primarily for Celgene's future product pipeline.
Executive Decision: Zscaler
For his "Executive Decision" segment, Cramer spoke with Jay Chaudhry, chairman and CEO of Zscaler (ZS - Get Report) , the cybersecurity company with shares that have plunged from $89 to $51 a share in recent weeks.
Chaudhry explained that they're seeing no significant change in their business. He said some of the attacks coming from legacy security vendors are exactly the kinds of things you'd expect when legacy vendors get displaced by better technology.
When asked about his comment on their conference call about larger deals taking longer to close, Chaudhry explained that Zscaler was still able to beat on both earnings and revenues and is still seeing lots of growth in their business.
Cramer Does His Homework
In his "Homework" segment, Cramer followed up on a few stocks that stumped him during earlier shows. He said that Digital Turbine (APPS - Get Report) , a speculative software company, has been around for a long time and has an exciting story, but investors may be late to the party. He recommended using limit orders and buying only after a sizable pullback.
Cramer said that talent recruiter Korn Ferry (KFY - Get Report) saw highs of $65 last year, but now trades for $37. The company simply hasn't been doing well lately. Cramer said he'd wait before considering this stock.
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