The market's next moves hinge on whether Congress can pass another stimulus bill, Jim Cramer told his Mad Money viewers Friday. That mean's next week's game plan will hinge on earnings, while we wait for news out of Washington, D.C.
Cramer's game plan begins on Monday with earnings from homebuilder Lennar (LEN) - Get Lennar Corporation Class A Report and an investor day from Pfizer (PFE) - Get Pfizer Inc. Report. Housing has been on fire and Cramer said he liked Pfizer's pipeline of potential blockbuster drugs.
Next, on Tuesday we'll hear from two Cramer favs, FedEx (FDX) - Get FedEx Corporation Report and Adobe Systems (ADBE) - Get Adobe Inc. Report. Camping World (CWH) - Get Camping World Holdings, Inc. Class A Report will also hold an investor day and Cramer was bullish on all three. He was skeptical about Kraft Heinz (KHC) - Get Kraft Heinz Company (KHC) Report, however, as the food maker could be running out of steam.
Wednesday the market will digest comments from Federal Reserve Chair Jay Powell, comments which Cramer said aren't likely to rock the market. We'll also receive earnings from office furniture maker Herman Miller (MLHR) - Get Herman Miller, Inc. Report, which Cramer speculated will be "unlikely to disappoint."
Finally on Friday, seed maker Mosaic (MOS) - Get Mosaic Company (MOS) Report will brief analysts, but Cramer said any good news from Mosaic will be good news for John Deere & Co. (DE) - Get Deere & Company Report.
Cramer and the AAP team are talking about what's happening in the markets right now, and where tech is headed. 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.
Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning.
Know Your IPO
In his "Know Your IPO" segment, Cramer there's a wave of new offerings headed our way, and nothing kills a bull market faster than a big wave of IPOs. That's because money managers can't own everything, so they typically sell what they have to make room for the latest "big thing."
Next week the market will digest eight new IPOs, with many more in the pipeline to follow. So far this year, we've already seen 111 IPOs, a new record.
As with all IPOs, the devil is in the details and it's the offering price that will matter most. There will be a lot of interest in next week's Snowflake deal, and Cramer said he's inclined to be a fan. Snowflake will be followed by a bunch of other cloud offerings like Unity Software and jFrog, which could put pressure on all of the cloud stocks.
Healthcare will be in the IPO mix as well, with Amwell and GoodRx coming soon. Cramer liked GoodRx, depending on the offering price.
We'll also see two direct listings, Palantir and Asana, the latter of which has an 82% growth rate but has always been a money loser.
Finally, there are some big deals in the pipeline, namely Airbnb, DoorDash and Instacart. Like Snowflake, these deals will generate a lot of buzz and suck a lot of momentum out of the rest of the market.
Popping the Fed Bubble Talk
Is the stock market caught in a bubble created by the Fed? Cramer attempted to dispel this recurring hypothesis once and for all. He said that with the exception of the cloud stocks, the market is most certainly not in a bubble.
There are 500 stocks in the S&P 500, Cramer reminded viewers, yet most people don't understand what most of them do. The banks have been struggling for years, he said, with shares of Citigroup (C) - Get Citigroup Inc. Report up just 39% since 2012 compared the S&P up 131% over the same period.
Banking and healthcare make up a big portion of our economy, and that's not to mention those industries directly affected by the pandemic, such as the airlines, travel, leisure, oil and gas, and retail.
So the next time you look at the market's hottest names and declare a bubble, look at the other 95% of stocks in the S&P 500.
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.
Fact and Fiction
When you buy shares in a company that has no products, it's hard to tell fact from fiction, Cramer told viewers, as he took a well-earned "I told you so" regarding Nikola Motors (NKLA) - Get Nikola Corp. Report.
Shortly before the company's reverse merger with a special purpose acquisition company, or SPAC, which allowed it to come public, Cramer cautioned that Nikola is less of a business and more like a business plan. He speculated that shares would surge on the hype and then plummet. After coming public at $30 a share and initially surging to $94, shares have taken a round-trip to $32 Friday.
The controversy in Nikola continues. After the company announced on Tuesday a partnership with General Motors (GM) - Get General Motors Company (GM) Report, short-seller Hindenburg Research issued a scathing report on Thursday claiming, among other things, that the company's truck doesn't actually work.
Cramer said many of the allegations levied by Hindenburg should be easy to disprove, but thus far, the company has issued only a one-page rebuttal.
Cramer Does His Homework
In his "Homework" segment, Cramer followed up on a few stocks that had stumped him during earlier shows. He said that Osmotica Pharmaceuticals (OSMT) - Get Osmotica Pharmaceuticals Plc Report is too small and too speculative for him to recommend, especially after the company's recent five million share secondary offering.
Cramer was also bearish on Alliance Data Systems (ADS) - Get Alliance Data Systems Corporation Report, a company that's been on a long downhill slide over the past five years, one that's included three CEOs in just the past 14 months. He recommended Visa (V) - Get Visa Inc. Class A Report, PayPal (PYPL) - Get PayPal Holdings Inc Report or Square (SQ) - Get Square, Inc. Class A Report as a replacement.
Cramer ended on a high note however, saying that Moog (MOG.A) , the defense contractor and industrial company, is a solid innovator that should be considered after the volatility of September passes.
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:
Horizon Pharmaceuticals (HZNP) - Get Horizon Therapeutics Public Limited Company Report: "I'm going to have to say no at these levels."
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramer's Action Alerts PLUS had a position in DIS.