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Grasping at Straws?: Cramer's 'Mad Money' Recap (Thursday 4/2/20)

Overlooking a huge jump in unemployment claims, the market’s accentuating the positive, says Jim Cramer.
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This market is so desperate for good news, it will latch onto anything, Jim Cramer told his Mad Money viewers Thursday. Today, the markets rallied on news that there may soon be a deal to cut Russian and Saudi oil production in an effort to stabilize oil prices. 

That news was enough to offset, at least temporarily, the news that another 6.6 million Americans have filed for unemployment.

We have to take the good news where we can get it, Cramer told viewers. Nothing will be perfect, he said, but perfect is not always an option.

That's certainly been the case with General Electric  (GE) , and Cramer checked in with chairman and CEO Larry Culp for an update. Culp said that GE's cash sale of its life sciences business to Danaher  (DHR)  has raised $20 billion, providing GE with the liquidity it needs to weather the COVID-19 storm. GE has also taken other tough actions, including furloughing many of its GE Aviation employees as air travel grinds to a standstill.

But Culp noted that in crises like this, you need to get ahead of reality and avoid thinking that things can't get worse. They can always get worse, he said, and leaders need to be prepared by clearly defining what winning looks like and making the sometimes-tough decisions.

On the positive side, Culp said the GE healthcare division has already doubled its manufacturing capacity of ventilators and will double it again later this spring. They are also making more CT Scanners and patient monitors and upgrading their clinical command center software to handle increased demand.

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.

Executive Decision: Okta

For his next interview, Cramer welcomed Todd McKinnon, chairman and CEO of Okta  (OKTA) , back on the show to discuss the new stay-at-home economy. 

McKinnon said that companies need a lot of flexibility to let their people work from anywhere and Okta offers a seamless security platform that allows employees to work from any device on any network. 

Okta's identity cloud platform is a universal directory of every employee in a company, McKinnon explained. But it also contains all of the devices employees use, the networks they're allowed to access from and which resources at the company they're given permission to. By removing friction and passwords from the login process, employees can have a one-click experience. 

McKinnon highlighted Tyson Foods  (TSN)  as one of Okta's success stories. The food giant has seen a monumental shift in its supply chain as it stops selling to restaurants and instead sends most of their output directly to grocery stores and consumers. Tyson needed a flexible security system to support this new way of doing business and Okta was able to deliver, he said.

National Burrito Day

Turning his focus to restaurants, Cramer checked back in with Brian Niccol, CEO of Chipotle Mexican Grill  (CMG) , which is celebrating National Burrito Day. 

Niccol said that Chipotle is still open for take-out and delivery and they're celebrating Burrito Day in any way they can. One of those ways is with a new program called Burritos for Healthcare Heroes, which is helping to feed America's healthcare workers battling COVID-19. 

Chipotle is also rewarding their employees. Niccol said quarterly bonuses will be going out to all store managers and leads to help them through this difficult financial time as well.

When asked how they're able to manage take-out and delivery, Niccol explained that Chipotle has invested heavily into its digital platform, which manages online orders, take-out, delivery and rewards. Coupled with a second in-store food prep line, the online side of the business is more profitable than in-person ordering at their restaurants.

Niccol said people should support all of their local businesses that are still open and do what they can to help keep employees working through this crisis.

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Calling RingCentral

Continuing with his string of interviews, Cramer spoke with Vlad Shmunis, founder and CEO of RingCentral  (RNG) , which Thursday introduced RingVideo, an online meeting service to compete with the likes of Zoom Video Communications  (ZM)

Shmunis said that RingCentral is not aiming to compete with Zoom. They are a leader in unified communications as a service, he said, and offer phone, messaging and now video services all in a single platform with security built in. 

Shmunis explained that legacy products, like WebEx from Cisco Systems  (CSCO) , are falling behind the curve and are helping to fuel RingCentral's growth. 

RingCentral is serious about video, Shmunis added. They've worked on their service for three years, including over a year testing with customers and have a unique and differentiated service. RingCentral was founded on the premise of communications anywhere, and RingVideo helps deliver on that promise.

Changes to Invest in

In his "No-Huddle Offense" segment, Cramer said when the pandemic ends, and it will end, things won't go completely back to normal. He said the remote working trend will be here to stay. 

Working from home isn't science fiction anymore, video conferencing from Zoom Video is for real and it's more convenient and environmentally friendly than commuting to the office. On the flip side, the world will need less office space, which is bad news for REITs.

People are also cooking a lot more, Cramer said, and investors should be thinking about spicemaker McCormick  (MKC) . They're also snacking more, which makes PepsiCo  (PEP)  a buy.

Finally, Cramer said that Amazon  (AMZN)  is proving to be a lifeline for many families in our new world, and the company also benefits from its Web Services juggernaut.

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 Thursday evening: 

AbbVie  (ABBV) : "I do like the stock's yield, but this one is under pressure with COVID-19." 

Domino's Pizza  (DPZ) : "I think this is the time to buy Domino's. They have great delivery."

Kinder Morgan  (KMI) : "I don't like pipeline or natural gas. There's too much supply out there."

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At the time of publication, Cramer's Action Alerts PLUS had a position in ABBV, PEP, AMZN.