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Game Plan: Cramer's 'Mad Money' Recap (Friday 1/3/20)

Jim Cramer says things are getting more complex, so investors should hold onto some cash for the next buying opportunity. Here’s the game plan for next week.
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Geopolitical uncertainty and concerns about Iran may have given the U.S. stock market something new to worry about, but Jim Cramer told his Mad Money viewers Friday that our economy remains strong -- and that makes him bullish on the outlook for 2020.

Here's his game plan for next week: 

Cramer said investors will be on the lookout for Iranian retaliation when trading resumes on Monday, but there isn't really a lot Iran can do given the oil glut in the U.S. He'll also be watching the latest PMI numbers for proof that the Federal Reserve's interest-rate cuts are working. 

On Tuesday, investors will be digesting the durable goods numbers, which includes, of course, airplanes. Cramer said Boeing  (BA) - Get The Boeing Company Report needs to take swift action to bolster its credibility and investors need to consider the possibility that the 737Max may never fly again. 

On Wednesday, earnings resume with Walgreens Boots Alliance  (WBA) - Get Walgreens Boots Alliance Inc. Report, but Cramer said he has long preferred CVS Health  (CVS) - Get CVS Health Corporation Report. We'll also hear from Constellation Brands  (STZ) - Get Constellation Brands Inc. Report, which has suffered from its investment in Canopy Growth  (CGC) - Get Canopy Growth Corporation Report, as cannabis has not lived up to the hype. 

Investors are also undecided about Bed Bath & Beyond  (BBBY) - Get Bed Bath & Beyond Inc. Report, which has a new CEO and a strong balance sheet, but is still searching for a reason to exist. Finally, we'll get a read on housing from Lennar  (LEN) - Get Lennar Corporation Class A Report on Wednesday and KB Home  (KBH) - Get KB Home Report on Thursday. Cramer said home builders have gotten no respect on Wall Street, but continue to deliver on earnings. 

Rounding out the week on Friday will be another important economic indicator, the non-farm payroll numbers. Cramer said investors need to be prepared for the bears to proclaim that rate hikes are needed to slow the economy if this number comes in better than expected. 

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.

Can This Bull Keep Charging?

Can the stock market extend its 2019 gains into 2020? Cramer told viewers if you look at the top 10 performers in the Dow Jones Industrial Average, you'll see that it can. 

Apple  (AAPL) - Get Apple Inc. Report topped the best performers last year, up 86%, and Cramer said his recommendation remains the same. Own it. 

Second on the list was another tech giant, Microsoft  (MSFT) - Get Microsoft Corporation Report, and Cramer said he thinks it's a winner, too. The financials made a strong showing, with JPMorgan Chase  (JPM) - Get JP Morgan Chase & Co. Report, Visa  (V) - Get Visa Inc. Report, Goldman Sachs  (GS) - Get Goldman Sachs Group Inc. (The) Report and American Express  (AXP) - Get American Express Company Report all making the top-10 list. With the economy growing, Cramer was also a fan of the banks. 

The top 10 list also included names like defense contractor United Technologies  (UTX) - Get n.a. Report, Nike  (NKE) - Get Nike Inc. Report, Procter & Gamble  (PG) - Get Procter & Gamble Company (The) Report and Walt Disney  (DIS) - Get The Walt Disney Company Report. Cramer was able to make a case for each of these companies to extend their gains into 2020 as well.  

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.

Best of the S&P 500

Continuing with his look back at 2019, Cramer took a look at the best performing stocks in the S&P 500 and also found lots to like. Among the list, he said only Xerox  (XRX) - Get Xerox Holdings Corporation Report should be sold, as this stock's 86% move last year is running out of steam. 

Advanced Micro Devices  (AMD) - Get Advanced Micro Devices Inc. Report, Lam Research  (LRCX) - Get Lam Research Corporation Report, KLA-Tencor  (KLAC) - Get KLA Corporation Report and topped the list of the S&P's biggest winners and Cramer expects the semiconductor rally to continue into 2020 and beyond. Both QORVO  (QRVO) - Get Qorvo Inc. Report and Applied Materials  (AMAT) - Get Applied Materials Inc. Report also made the list, further bolstering the case for all things semi. 

Target  (TGT) - Get Target Corporation Report was the only retailer to make the list. Cramer continued to recommend it. He was also bullish on the continued turnaround at Chipotle Mexican Grill  (CMG) - Get Chipotle Mexican Grill Inc. Report

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TheStreet Recommends

Lastly, Cramer liked Copart  (CPRT) - Get Copart Inc. Report, the auto company that's in a special category with no real competition. 

Executive Decision: CrowdStrike

For his first "Executive Decision" segment for the year, Cramer spoke with George Kurtz, co-founder and CEO of the red-hot cybersecurity company CrowdStrike  (CRWD) - Get CrowdStrike Holdings Inc. Report, which came public in mid-2019, to much fanfare. 

Kurtz said CrowdStrike has great technology and is solving an important problem for companies. Every day, often behind the scenes, companies are getting attacked by individuals and nation states and these companies need a unified solution for protection.

When asked about Iran, Kurtz said that retaliation from Iran in the form of cyber attacks is certainly possible and CrowdStrike it ready to help identify and protect those attacks if and when they occur. 

When asked why CrowdStrike's solutions are so popular, Kurtz explained that everyone wants the benefits of the cloud. The cloud is the future and it allows companies to consolidate and protect themselves using the latest in artificial intelligence that can identify attacks even if they've never been see before.

Lightning Round

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

Shake Shack  (SHAK) - Get Shake Shack Inc. Class A Report: "I think they had a really good quarter but Wendy's WEN is the cheapest burger company."

AGNC Investment Corp.  (AGNC) - Get AGNC Investment Corp. Report: "I don't like that kind of REIT. I don't know what they really own."

U.S. Bancorp  (USB) - Get U.S. Bancorp Report: "I think that's a good one."

Luckin Coffee  (LK) - Get Luckin Coffee Inc. Report: "I thought this stock had peaked and I was dead wrong. I like Starbucks  (SBUX) - Get Starbucks Corporation Report and I'm recommending Alibaba group  (BABA) - Get Alibaba Group Holding Limited American Depositary Shares each representing eight Report as the only thing I like in China."

ViacomCBS  (VIACA) - Get ViacomCBS Inc. Class A Report: "It's ridiculous that this stock is so low." 

Is the Sky Really Falling?

In his "No-Huddle Offense" segment, Cramer opined on the market's reaction to today's news of the U.S. strike against Iran. He said that while oil prices spiked initially, overall the price of crude barely budged. Oil producers like Chevron  (CVX) - Get Chevron Corporation Report and Exxon Mobil  (XOM) - Get Exxon Mobil Corporation Report even ended the day lower. 

Cramer said Iran simply doesn't control the oil market anymore. The U.S. is now the swing producer, able to fill any shortfall in supply. That leaves Iran with little ability to create any mayhem in global markets over the long term. Be wary of analysts who predict the sky is falling. 

Investors looking to play the oil market should look at BP undefined and Schlumberger  (SLB) - Get Schlumberger N.V. Report, Cramer said, but he'd rather play these tensions with cybersecurity stocks like CrowdStrike.

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At the time of publication, Cramer's Action Alerts PLUS had a position in CVS, AAPL, MSFT, JPM, GS, DIS, LRCX, VIAC, BP, SLB.