Stocks fell sharply Thursday after the Federal Reserve indicated it could begin tapering stimulus this year even as surging coronavirus infections caused by the delta variant have raised worries about the pace of the U.S. recovery.
In the most recent "Mad Money" program on CNBC, TheStreet Founder Jim Cramer said selloffs are opportunities for investors who do their homework and focus on stocks that are doing exceptionally well.
Cramer and TheStreet Senior Portfolio Analyst Jeff Marks are talking about the Fed's approach to the surge in delta-variant COVID cases and about Krispy Kreme earnings.
Minutes from the latest Federal Reserve meeting showed that central bank officials said more progress was needed in the employment market before it considered tapering stimulus, but most said "it could be appropriate to start reducing the pace of asset purchases this year.”
Cramer said the pressure on the Fed comes from the media: "The pressure on Powell to do something now is silly. I think Powell's stance is when things are clearer we'll make a move. Given the disarray of the FDA [U.S. Food and Drug Administration] and the CDC [Centers for Disease Control and Prevention] and the inability to come up with some federal data that shows how things are doing in terms of health care, and he's [Powell] not a public health adviser, why not wait? [The] Fed doesn't have the data to make a move."
Experts have been divided between expecting a COVID-19 peak while others say the pandemic is raging. "So why doesn't he [Powell] wait a month until that can be resolved?" Cramer added.
Krispy Kreme: Buy Or Sell?
Krispy Kreme (DNUT) - Get Krispy Kreme Report reported adjusted earnings of 13 cents a share on revenue of $349.2 million, missing the consensus earnings expectation by a penny.
Chief Executive Michael Tattersfield told Cramer that even with the miss, Krispy Kreme had its best second quarter in its history, with results led by its global footprint and transition to an omnichannel model.
Cramer said Krispy Kreme is fighting the "they make you fat" notions.
"The old days why you would go there ... was that it was a treat. You could go treating there. As much as I love Tattersfield and I really do, they are not good for you. So that's what they are fighting versus when they weren't public, and the stock is worth more now," said Cramer.