When the market falls in love, it simply won't let go, Jim Cramer told his Mad Money viewers Thursday. There's no middle ground when it comes to stocks lately, Cramer added -- investors either love something or they hate it with a passion.
One of the hottest sectors in the market lately is financial payments technology, or fintech, as it's often called. As the world transitions from paper to plastic to digital payment technology, the payment processors are seeing huge addressable markets.
That's why Visa (V) is up 23% for the year, with Mastercard (MA) adding 36% and newcomer Square (SQ) up a staggering 103% in 2018. Payment processors don't need to worry about interest rates or the yield curve, they simply make money every time you make a purchase.
But when the market doesn't love a stock or sector...
The market's love hasn't extended to Walt Disney Co. (DIS) lately. Despite hit movie after hit movie, all investors wanted to know about was the subscriber losses at ESPN. But now that Comcast (CMCSA) has dropped its bid for assets at Twenty-First Century Fox (FOXA) , investors might again begin to appreciate this media and entertainment powerhouse.
IBM (IBM) has found itself in a similar situation, suffering investor hatred no matter how fast it tried to transition from mainframe systems and into the cloud. That all changed last night however, with strong earnings that sent shares up 3.2% today.
Finally, Cramer noted that Dannaher (DHR) has been lagging the markets at its dental business lowered the company's growth rate. But today, after announcing a spin-off of that division, the love returned, with shares up 4.4%.
Cramer and the AAP team are buying Anadarko Petroleum Corp. (APC) into today's weakness. 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.
Tariffs and Earnings: Cramer's Take
The more tariffs we get, the more investors need to worry, Cramer warned viewers. On conference call after conference call, Cramer said, he's hearing one question from analysts, "What's the impact of tariffs?"
Today we learned that Alcoa (AA) is seeing huge impacts from aluminum imported from Canada, news that sunk its shares by over 10%. Alcoa initially welcomed tariffs, but they expected an exemption for Canada. When that exemption never came, the company paid, and will continue to pay, the price.
Cases like these have analysts scrambling for companies that are not affected by tariffs, Cramer said, but even domestic retailers like Five Below (FIVE) will eventually get the tariff question and no one really knows who will be affected and who won't. If tariffs can derail Union Pacific (UNP) , which saw a 4% decline in its agriculture shipments, then no one can really be safe.
Over on Real Money, Cramer dives into tariffs and earnings and the companies investors are worried about. Get more of his insights with a free trial subscription to Real Money.
Executive Decision: Domino's Pizza
For his "Executive Decision" segment, Cramer spoke with Ritch Allison, the new president and CEO of Domino's Pizza (DPZ) , which today reported a 10-cents-a-share earnings beat on lighter-than-expected sales that sent shares initially plunging 2.5%.
Allison explained that while their growth this quarter was within the range they provided, they can still do better. Their plans remains to deliver 6% to 8% unit growth, and Allison said he's still comfortable with that range.
Among the things driving growth for Domino's was the chain's new "hotspots," which allows customers to have food delivered to places like parks, beaches and sports venues. There are now over 200,000 hotspots available. Allison said his company's loyalty program, which is now in its third year, also continues to grow.
When asked about new concepts for pizza delivery, like mobile pizza ovens, Allison said they continue to innovate with the business model they have and will keep delivering great food and great value.
Executive Decision: Nucor
In his second "Executive Decision" segment, Cramer spoke to John Ferriola, chairman, president and CEO of Nucor (NUE) , which today announced an eight-cents-a-share earnings beat. Shares of Nucor have essentially traded flat since talk of tariffs on steel has begun.
Ferriola said that despite just reporting the second-best quarter in the company's history, the impacts of tariffs are only just now beginning. So far, there's been only a slight impact on steel imports, he added, with imports totaling 14 million tons so far this year, compared to 15 million tons last year.
For the first time in a long time, steel is responding to the laws of supply and demand, Ferriola said, and because Nucor invested for growth during the downturn, they're now ready to capitalize on the demand that's being created. Nucor will continue to move up the value chain with higher margin products, he concluded, and that will translate to higher profits.
Cramer said this Action Alerts PLUS holding will continue to deliver for shareholders.
Cramer Does His Homework
In his "Homework" segment, Cramer followed up on a few stocks that has him stumped during earlier shows. He said that Senseonics (SENS) is a small medical technology company that just received FDA approval, but the stock has given up much of its gains after a secondary offering. Cramer said he'd stick with Dexcom (DXCM) or Abbott Labs (ABT) , an Action Alerts PLUS holding.
Cramer said that Atricure (ATRC) is another small medical device maker and he'd be willing to speculate on it.
Finally, Cramer said that small business lender Live Oak Banc (LOB) is growing like a weed, but still trades at 19 times earnings. He suggested waiting until they report next week.
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At the time of publication, Cramer's Action Alerts PLUS had a position in APC, NUE, CMCSA, DHR, RTN.