Stocks were mostly higher Friday but gains were limited after data from the U.S. and China renewed concerns over inflation despite assurances from Federal Reserve Chairman Jerome Powell that the central bank had the tools to curb higher prices.
The yield on the 10-year U.S. Treasury note rose Friday to 1.646%. The Dow Jones Industrial Average rose 82 points, or 0.25%, to 33,585 and the S&P 500 was up 0.19%. Both indexes set all-time intraday highs. The Nasdaq fell 0.02%.
An unexpected increase in the number of Americans filing for first-time unemployment benefits dented sentiment as evidence piles up that a U.S. recovery has a long way to go, noted TheStreet's, Joseph Woelfel.
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Impact of Semiconductor Shortage
Chip shortages have caused delays in a key step in MacBook production - the mounting of components on printed circuit boards before final assembly, sources told Nikkei. Per sources, some iPad assembly was postponed because of a shortage of displays and display components.
"We know that what matters is Apple iPhones, but it is amazing -- I mean, this is the most important client in the world. A lot of companies were reluctant to order chips ahead of time, but not the Chinese. So, I think that the Chinese double ordering has confounded everybody. But, it doesn't confound me because I see it time and again," Cramer said.
Amid the chip shortage, Cramer has been focused on companies like Applied Materials (AMAT) - Get Applied Materials Inc. Report and Lam Research (LRCX) - Get Lam Research Corporation Report, which make the machines needed to eliminate the shortage.
Clubhouse, Twitter, and Facebook
And this comes as Facebook (FB) - Get Meta Platforms Inc. Report has reportedly begun testing Hotline, a combination of Clubhouse and Instagram live, in a bid to capitalize on the growing popularity of audio-driven real-time instant chatting and content.
The social media giant rolled out a beta version of the experimental app, which is a combination of Clubhouse, Q&A, and Instagram live. The app allows participants to ask questions to a host via audio and text. However, unlike Clubhouse, users can also turn on their cameras.
"I know people feel that this is gigantic. I think it's important and an interesting venue, but it could be more of a flash in the pan than people realize," Cramer said.
How To Approach Cannabis Stocks
Under the terms, Canopy Growth, Smith Falls, Ontario, agreed to pay 0.01165872 a share and C$0.0001 cash for each share of Supreme, Toronto, TheStreet's Dan Weil noted. The transaction provides Supreme Cannabis holders with a 66% premium based on the Wednesday closing prices of the two companies on the Toronto Stock Exchange.
"They need to expand much more than they have. Constellation needs to urge Canopy to do more than they're doing, and this is what they came up with. It's not necessarily what I hoped -- I was hoping Canopy would just buy a company for stock that may have high-quality Cannabis in Canada. So, I understand why the market's not happy because I know I wouldn't have done it," he added.
Costco: Buy or Sell?
Costco (COST) - Get Costco Wholesale Corporation Report shares edged higher Thursday amid a host of Wall Street upgrades following stronger-than-expected March sales data from the bulk discount retailer.
The company's sales topped $18 million in March. Same-store sales for March were up 16%, Costco said, while e-commerce sales surged 57.7%.
"Costco has got tremendous renewals because it's just so much cheaper and that's how the company really makes its money. When I see they're opening a lot of new stores that means a lot of new members," said Cramer.
The Trajectory of Cryptocurrency
In the past two months, the cryptocurrency market has doubled and has now risen to $2 trillion. Bitcoin, of course, makes up about half of that -- with a $1 trillion valuation per GoinGecko.
"I own bitcoin personally, my kids own bitcoin. I generally like bitcoin for scarcity and recommend having it as part of your portfolio," Cramer said.
"I have always said that I think Square (SQ) - Get Block Inc. Class A Report is terrific because it's willing to give you a piece of bitcoin, and I think Paypal is a place to focus on bitcoin. But my limited purview is the companies that are giving you the opportunity, and I favor them over those that aren't," added Cramer.
How To Approach Cruise Stocks
Jim Cramer has been focused on cruise stocks for the past couple of weeks.
"For his second "Executive Decision" segment, Cramer also spoke with Frank Del Rio, president and CEO of Norwegian Cruise Line Holdings (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report, the cruise line operator that finds itself locked in a battle with the CDC over the timing and protocols needed to resume sailing. Shares of Norwegian rose 7.1% Monday after the company offered up its latest round of proposals for safe operations," wrote TheStreet's Scott Rutt in his Mad Money recap.
"Del Rio said he was "deeply disappointed" by the latest guidance from the CDC. "It's time to start cruising again," he said. The cruise lines have been forbidden from sailing for 17 months and there is still seemingly no end in sight," he continued.
However, when asked if investors should hold onto cruise stocks, Cramer said: "Absolutely. I think these are incredibly well-run companies. When you look at the bookings, they're extraordinary. They're above where they were last year at this time. Companies are ready -- they've changed the filtration, they're got very good systems, maybe the best, and they've done everything right."
Electic Vehicle Play: Stick With Tesla
The company reported stronger-than-expected vehicle deliveries for the first quarter as it's on pace to deliver 850,000 vehicles in 2021.
The China Passenger Car Association on Friday reported its March numbers, showing that Tesla delivered 35,500 vehicles, about double the February figure.
Wedbush analysts, following the news, upgraded the stock's price target to $1,000 from $950.
"In our opinion, the 1Q delivery numbers released on Friday was a paradigm changer and shows that the pent-up demand globally for Tesla's Model 3/Y is hitting its next stage of growth as part of a global green tidal wave underway," wrote analysts Dan Ives and Strecker Backe in a research note.
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