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 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 Report, but Cramer said he has long preferred CVS Health (CVS) - Get Report. We'll also hear from Constellation Brands (STZ) - Get Report, which has suffered from its investment in Canopy Growth (CGC) - Get Report, as cannabis has not lived up to the hype.
Investors are also undecided about Bed Bath & Beyond (BBBY) - Get 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 Report on Wednesday and KB Home (KBH) - Get 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.
Second on the list was another tech giant, Microsoft (MSFT) - Get Report, and Cramer said he thinks it's a winner, too. The financials made a strong showing, with JPMorgan Chase (JPM) - Get Report, Visa (V) - Get Report, Goldman Sachs (GS) - Get Report and American Express (AXP) - Get 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 Report, Nike (NKE) - Get Report, Procter & Gamble (PG) - Get Report and Walt Disney (DIS) - Get 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 Report should be sold, as this stock's 86% move last year is running out of steam.
Advanced Micro Devices (AMD) - Get Report, Lam Research (LRCX) - Get Report, KLA-Tencor (KLAC) - Get 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 Report and Applied Materials (AMAT) - Get Report also made the list, further bolstering the case for all things semi.
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 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.
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:
Luckin Coffee (LK) - Get Report: "I thought this stock had peaked and I was dead wrong. I like Starbucks (SBUX) - Get Report and I'm recommending Alibaba group (BABA) - Get Report as the only thing I like in China."
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 Report and Exxon Mobil (XOM) - Get 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.
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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.