The "Goldilocks" employment report gave investors the perfect opportunity to lighten up on their positions and raise cash, Jim Cramer told his Mad Money viewers Friday. But don't get fooled, he cautioned, interest rates and the bond market are still in control of where stock prices head next.
Cramer's game plan for next week's action keeps one eye on the bond market, as any additional rise in interest rates will derail any stock market gains. Cramer's other eye will be on Stitch Fix (SFIX) - Get Stitch Fix, Inc. Class A Report on Monday. He expects another better-than-expected quarter from this online retailer.
On Tuesday, Cramer will be focused on another retailer, Dick's Sporting Goods (DKS) - Get Dick's Sporting Goods, Inc. Report, which is poised to rally as team and youth sports return after a year-long hiatus.
Next, on Wednesday we'll get earnings from Campbell Soup (CPB) - Get Campbell Soup Company Report and Oracle (ORCL) - Get Oracle Corporation Report. Cramer said packaged foods fail to impress Wall Street these days, even with a 3.2% dividend yield, but Oracle is just the low-risk tech stock that investors are looking for.
Thursday brings earnings from two more retailers, JD.com (JD) - Get JD.com Inc. Report and Ulta Beauty (ULTA) - Get Ulta Beauty Inc Report. Cramer is looking for strong results from both companies, especially long-time fav Ulta.
Finally, on Friday, AT&T (T) - Get AT&T Inc. Report will hold an analyst day, but Cramer said he would not be a buyer. The troubled telco may have an enticing dividend yield, but its shares continue to fall and erase those gains.
Cramer and the AAP team are looking at everything from earnings and tariffs 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: Okta
In his first "Executive Decision" segment, Cramer spoke with Todd McKinnon, president and CEO of cybersecurity giant Okta (OKTA) - Get Okta, Inc. Class A Report, along with Eugenio Pace, CEO of Auth0. Earlier this week, Okta announced it will be acquiring Auth0 in a deal worth $6.5 billion.
McKinnon said Okta ended the year strong, with subscription revenue up 43%, totaling over $800 million for the year. The markets for cybersecurity and identity management are huge, he added, and there is a lot of room left to grow.
Pace noted that the world is run by software and every company is becoming a software company. That means there's a growing need for developer tools that make the lives of developers easier and faster, which is what Auth0 provides.
When asked why Okta needed to acquire Auth0, McKinnon explained that the companies are complementary. He said the workforce identity market is worth $30 billion, but customer ID management, which is where Auth0 excels, adds an additional $25 billion.
You have to assume the bad guys are everywhere, McKinnon concluded, which is why the combination of Okta and Auth0 allow companies to authenticate every user, every machine and now every customer, quickly and securely.
Executive Decision II: Trex
In his next exclusive "Executive Decision" segment, Cramer spoke with Bryan Fairbanks, president and CEO of composite decking maker Trex (TREX) - Get Trex Company, Inc. Report. Shares of Trex are up 63% over the past year as people around the nation scrambled to upgrade their homes and backyards amidst the pandemic.
Fairbanks said Trex's primary competitor continues to be wood, which accounts for 78% of all decks in America. There is plenty of room for all players, he added, when asked about rival Azek (AZEK) .
Wood is not as environmentally friendly as you might think, Fairbanks explained. Pressure treated lumber involves a lot of chemicals and the product only lasts for 10 to 15 years. At the end of its life, all of those chemicals end up back in the soil.
Trex, by comparison, lasts a lifetime and the company uses 400 million pounds of plastics every year that would otherwise end up in landfills.
Trex is now available in over 6,700 locations across the nation. The company caters to both contractors and the do-it-yourself homeowner who's looking for superior decking material.
Executive Decision III: Nutanix
In his next "Executive Decision" segment, Cramer spoke with Rajiv Ramaswami, president and CEO of cloud software provider Nutanix (NTNX) - Get Nutanix, Inc. Class A Report. Shares of Nutanix have fallen 25% from their highs earlier this year.
Ramaswami said that Nutanix addresses the two key concerns of companies today, digitization and dealing with a remote work force. The company's virtual desktops and cloud platforms are perfect solutions for both of these needs.
When asked about investors' concerns over the company's revenues, Ramaswami explained that like many other companies, including Adobe Systems ADBE, Nutanix is transitioning from selling hardware appliances to subscription software. As their renewal business kicks in, revenues will return the company to growth.
Finally, when asked about the red-hot topic of security, Ramaswami noted that Nutanix is constantly building new security features into their products. Some of their latest offerings help detect and stop ransomware attacks.
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.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said in volatile markets like these, your worst enemy could be your fellow shareholders. Take Costco (COST) - Get Costco Wholesale Corporation Report, the retailer that just posted mixed results that included 15% same store sales growth. With shares off $70 from their highs, Costco is a buy in Cramer's book.
But for the home gamer buying on margin or the hedge fund manager needing to raise cash to cover redemptions, Costco isn't a company with great fundamentals and a low share price, it's merely a source of funds. These shareholders can't be counted on to respond to great earnings, Cramer said, which makes investing a lot more difficult than it used to be.
In the Lightning Round, Cramer was bullish on United Micro Electronics (UMC) - Get United Microelectronics Corp. Report and Enterprise Products Partners (EPD) - Get Enterprise Products Partners L.P. Report.
Cramer was bearish on Magellan Midstream Partners (MMP) - Get Magellan Midstream Partners, L.P. Report, GlaxoSmithKline (GSK) - Get GlaxoSmithKline Plc Report and Palantir Technologies (PLTR) - Get Palantir Technologies Inc. Class A Report.
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At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.