Without additional stimulus, investors need to stick with the safety stocks, Jim Cramer told his Mad Money viewers Friday. Cramer's game plan for next week's trading all hinged on Friday's non-farm payroll numbers, which is why he also told viewers to leave room in their portfolios for some recession stocks.
The game plan starts on Monday, when Cramer is expecting retaliation from China against President Trump's tough words on Friday. Cramer said he thinks this is a bad time to escalate the trade war and it could have bigger impacts on the economy than earlier rounds, fought when the economy was solid and unemployment was low.
Next, on Tuesday, we get earnings from Zoom Video (ZM) - Get Report and CrowdStrike (CRWD) - Get Report, two red-hot stocks that are thriving in our stay-at-home economy. Wednesday sees another quarantine stock, Campbell Soup Co. (CPB) - Get Report. Cramer wants to hear if the hoarding phase is over or if this recession stock will continue to surge.
The bulk of earnings come on Thursday when we hear from JM Smucker (SJM) - Get Report, Broadcom (AVGO) - Get Report, Gap Stores (GPS) - Get Report, Slack (WORK) - Get Report and DocuSign (DOCU) - Get Report. Cramer was a fan of all these names, except for Gap Stores. He said investors just shouldn't own second-rate retailers.
But the big event is Friday when we learn May's non-farm payroll numbers. Cramer said there will be gigantic job losses that will cement in investors' minds just how bad the coming recession will be.
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Executive Decision: Zscaler
In his first "Executive Decision" segment, Cramer spoke with Jay Chaudhry, chairman and CEO of cybersecurity company Zscaler (ZS) - Get Report with shares that rose 29% today. Shares of Zscaler are up 111% for the year.
Chaudhry said Zscaler's mission from the beginning was to allow employees to work from anywhere, that's why when the pandemic hit, they were ready and could help companies quickly transition their workforces to work remotely. Zscaler has also been working closely with the federal government, recently partnering with the Dept. of Defense for up to 500,000 users.
Chaudhry added that the cybersecurity market is big enough for all players, but those who are in the cloud will be the big winners. With the rollout of 5G wireless, many people won't even need traditional networks anymore, and with that comes great new opportunities.
Executive Decision: e.l.f.
For his second "Executive Decision" segment, Cramer also spoke with Tarang Amin, chairman and CEO of e.l.f. Beauty (ELF) - Get Report, which found itself in a proxy fight with activist investor, Marathon Partners.
Amin said e.l.f. is performing well. The declines the company saw in 2018 were a real wake-up call. Since then, they've focused on five new initiatives and have enjoyed five consecutive quarters of year-over-year sales growth as they continue to take market share.
When asked about the effects of the pandemic, Amin said they did initially see declines, but over the past four weeks, consumption is up 11%. He said their partnerships with Target (TGT) - Get Report and Walmart (WMT) - Get Report continue to perform well. Both Walmart and Ulta Beauty (ULTA) - Get Report are expanding their e.l.f. footprint within their stores.
Amin also commented on their viral campaigns on TikTok. He said younger consumers love their products and the 4.5 billion views their campaigns have garnered proves the vitality of their brand loyalty.
Executive Decision: Fastly
Bixby said the pandemic is compressing the digital transformation that was already occurring at companies. Fastly was built to help content creators and developers bring their code and content to the world. He said no one could have predicted the pandemic, but it's allowed many people to innovate in new ways.
Bixby said Fastly's services are mission critical for companies and they've been able to grow and adapt to meet their needs.
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Buy When Others Sell
Everyone loves a story that makes sense, Cramer told viewers, but sometimes the confusing stories make for the biggest opportunities. Case in point, Salesforce.com (CRM) - Get Report and Costco (COST) - Get Report.
Salesforce was met with a wave of selling after the company cut its forecasts, but Cramer noted that a crisis is a terrible thing to waste, and Salesforce is following the same playbook they used in the 2008 crisis, spending more to dominate the competition.
The same applies to Costco. The company chose to shutter some very profitable departments, like glasses, hearing aids and their cafeteria, until they could figure out how to open those areas safely. The upside? This essential retailer was able to stay open thanks to the built-in social distancing of their extra-wide aisles.
That's why it pays to do the homework and buy when others are selling.
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:
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At the time of publication, Cramer's Action Alerts PLUS had a position in CRM, COST.