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Market Recap With Jim Cramer: Cannabis, Lululemon, Chewy Stocks

TheStreet recaps the best stories with Jim Cramer from the past week including what McCormick stocks say about reopening, why buy fitness stocks, and more.

Stocks climbed on Thursday following the announcement of President Joe Biden's $2.25 trillion infrastructure spending plan. 

With the stock market closed on Good Friday, top gainers ending the week included Wingstop  (WING) - Get Report, Wayfair  (W) - Get Report, Funko  (FNKO) - Get Report, Guess  (GES,) - Get Report and United Therapeutics  (UTHR) - Get Report

Jim Cramer shares his stock market advice every morning on Jim Cramer Today with Katherine Ross. Readers can also read Cramer's market coverage with the Morning Bell, Stock Market Today, and the Mad Money Recap.

Cannabis Stocks and NY Legalization

New York legalized recreational marijuana after the state's senate voted on Tuesday evening to legalize possession of small amounts, and eventually, allow sales to people over the age of 21.

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Jim Cramer says to trim cannabis stocks as many anticipated the pending legalization. "I don't think we'll suddenly get a luge of activity," he said. "Every time a state has legalized it, it ended up being a bust to buy the stocks." 

Why Cramer Is Watching Tech Stocks

"High-growth tech stocks are under siege and, unfortunately, they're likely to stay that way for the foreseeable future," Jim Cramer told his Mad Money viewers Tuesday. 

He noted that there's too much speculation in the market.
"Speculation, coupled with rising inflation, makes growth stocks trade more like penny stocks," he said. "Second, there's too much greed. This week's implosion of Archegos is the latest example of excessive greed gone awry," he continued.

Twilio: Buy or Sell? 

Cramer has been warning about too much supply for weeks, and that applies to his view of the tech company Twilio  (TWLO) - Get Report. He says to trim it.

"The market simply cannot handle the deluge of IPOs, SPACs, secondary offerings, and direct listings. Every new issue hammers the market a little more," Cramer said.

Lululemon: Buy or Sell?

Cramer says the Lululemon  (LULU) - Get Report push is not just a pandemic play, and that he believes that it'll last even after the pandemic is over.

"The company is historically very conservative, it was a very good quarter, yes they will spend more in Mirror, yes the brick-and-mortar stores didn't do as well, but I'm not worried about Lululemon at all, Cramer said. "I would buy it right now."

Chewy: Buy or Sell? 

Chewy  (CHWY) - Get Report posted earnings that beat Wall Street expectations and it even posted a surprise profit. Cramer says the company is "remarkable."

"I really like very much what they're doing and I think what you want to do with Chewy is buy it and hold it," Cramer says. He adds that he has liked Chewy since it went public.

Why Buy Fitness Stocks

Cramer says that he likes Planet Fitness  (PLNT) - Get Report and Peloton  (PTON) - Get Report because he thinks people want to be more fit and workout, especially during the pandemic. 

"I think we've all learned that there will be more pandemics. And, the only thing you have that's a great natural defense against a pandemic is not whether you're the cleanest or whether you're wearing a good mask, but it's how strong you are and whether you're in shape," Cramer explains. 

McCormick And Reopening Stocks 

McCormick  (MKC) - Get Report posted earnings that beat expectations on Tuesday. Cramer names it a stock that investors should watch.

Cramer says the company can be tied to the recent CDC "apocalyptic warning" as a stock that can tell us where we are in the pandemic. "If we're apocalyptic, we stay at home. If you stay at home that means you cook at home," he explains. 

With the CDC director talking about "impending doom," Cramer thinks that watching whether McCormick stocks rise or fall could be an indicator of how much people believe in the reopening. The company's shares have been on the rise this past week. "With a reopening thesis, McCormick will go down," Cramer says. 

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