Next week could see a continuation of Friday's rally in the markets, Jim Cramer told his Mad Money viewers, but only if President Trump doesn't ratchet up trade tensions with China.
Cramer's game plan for next week starts on Monday with all eyes on China and whether a hard line against Huawei will translate into retaliation against U.S. companies like Apple (AAPL) - Get Report or Boeing (BA) - Get Report. It's one thing to start a trade war with a strong economy, Cramer said, but it's completely different when you're on the brink of a depression.
On Tuesday, Cramer will be looking at earnings from two essential retailers, Home Depot (HD) - Get Report and Walmart (WMT) - Get Report, and one non-essential retailer, Kohl's Stores (KSS) - Get Report. He advised selling Kohl's into any strength. The pattern of essential companies continues on Wednesday with Target (TGT) - Get Report, Lowe's (LOW) - Get Report and Take-Two Interactive (TTWO) - Get Report -- all expected to report strong results.
The earnings turn mixed on Thursday, when we'll hear from TJX Companies (TJX) - Get Report, which has been closed, but will likely pick up a ton of distressed merchandise at great prices. Best Buy (BBY) - Get Report, Nvidia (NVDA) - Get Report and Splunk (SPLK) - Get Report will be on Cramer's buy list for Thursday, but he was worried about Medtronic (MDT) - Get Report and Hormel Foods (HRL) - Get Report.
Finally, on Friday, we hear from Alibaba (BABA) - Get Report, which could be in the crosshairs of the trade war, as will Deere & Company (DE) - Get Report. Foot Locker (FL) - Get Report closes out the week, with Cramer expecting athletic apparel to be "roadkill."
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.
What's the Beef?
What do money managers get wrong when trying to value stocks like Beyond Meat (BYND) - Get Report? They only look at the company through the four walls of the spreadsheet instead of looking at the scale of the opportunity.
Cramer said Beyond Meat justifies its valuation because it's more than just a company, it's an ethos. As meat packing plants struggle with coronavirus outbreaks, Beyond Meat has responded by lowering prices to take market share and introduce its healthier alternative to more consumers. It's not only what millennials want, it's what they're investing in.
Beyond Meat is the Tesla (TSLA) - Get Report of food, Cramer continued, just as Shopify (SHOP) - Get Report is for e-commerce. All of these companies have followings and market opportunities far greater than traditional metrics can calculate, and that's why their stocks continue to soar.
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Executive Decision: DraftKings
In his first "Executive Decision" segment, Cramer spoke with Jason Robins, CEO of DraftKings (DKNG) - Get Report, the fantasy sports platform that's evolving into an online casino. The company came public earlier this year, right at the beginning of the pandemic.
Robins said despite most sports still being shuttered, DraftKings has been able to grow. The company's eSports betting was fairly small just a few months ago, he said, but after being the only thing available, demand has picked up.
DraftKings also saw a lot of interest and engagement surrounding this year's NFL draft which, at the time, was also one of the only things available. The company has also been able to add new sports, like table tennis, to their platform because table tennis is one sport where participants are always six feet apart.
Looking to the future, Robins said people are anxious to see their favorite sports return. NASCAR racing will resume soon and will hopefully fulfill the pent-up demand people are feeling being stuck at home.
Executive Decision: Wix.com
For his second "Executive Decision" segment, Cramer also spoke with Avishai Abrahami, co-founder and CEO of Wix.com (WIX) - Get Report, the website creation platform. Shares of Wix are up 70% over the past month.
Abrahami said Wix continues to provide a lot more than just great looking websites for their customers. All of their services have been in high demand since the pandemic started, including e-commerce, which rose 500%. Small businesses from grocery delivery to yoga classes have been setting up shop on Wix to reach their customers.
Abrahami said he wouldn't give governments around the world high marks for how they've handled the pandemic when it comes to small business, but he would give those businesses themselves an A+ for their innovation and drive to survive. Wix saw 3.2 million new customers in the month of April as these businesses moved their operations online almost overnight.
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Off the Tape: Footprint
In his "Off the Tape" segment, Cramer spoke with Troy Swope, CEO of the privately held Footprint, a company leading the charge in the development of biodegradable plastics.
Swope said it's no secret that plastics are a disaster for the environment. By 2050, there will be more plastic in the ocean than fish. In the U.S., only 9% of all plastics get recycled. But Swope called himself an "accidental environmentalist," because his focus while at semiconductor maker Intel (INTC) - Get Report was to reduce costs. What he discovered there was that eliminating plastics not only reduced costs, it was better for the environment.
Footprint is a materials science company that's developing technology to produce materials that can achieve both goals. He said products like the plastic six-pack ring can easily be replaced by biodegradable alternatives, the key is being able to apply them at high enough speeds for major manufacturers to adopt.
When it comes to the environment, Swope said we need to stop asking "is it recyclable?" and instead focus on "does it get recycled?" because a product that doesn't get recycled isn't helping anyone.
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:
Jacobs Engineering J: "I don't want to buy engineering and construction going into a slowdown."
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, TJX, TTWO, NVDA.