Not the Last Bounce : Cramer's 'Mad Money' Recap (Tuesday 3/17/20)

Jim Cramer reminds investors that the bounce after the 2008 TARP bailout announcement was followed by more pain.

Be careful -- this bounce might not last, Jim Cramer warned his Mad Money viewers Tuesday. Today felt like it did when the government stepped in to bail out the banks in 2008, Cramer said, but the pain we're going to feel from the coronavirus isn't over yet.

Today we saw a bifurcated market, one where only the strong stocks rallied while the weaker names faded into the darkness. But as our nation continues to struggle to get a handle on the outbreak, Cramer noted that the entire service economy could be at risk, including restaurants, hotels, retail, entertainment and casinos.

Add to that a price war in oil and an aerospace sector struggling along with Boeing  (BA) - Get Report, and there won't be many places left to hide.

There were some positives on the day. We're seeing the ingenuity of American biotechnology at its best, as company after company is announcing the availability of test kits and trials for vaccines and treatments to help lessen the symptoms of the coronavirus. 

But Cramer also cautioned that he doesn't like to see the likes of Walmart  (WMT) - Get Report and Amazon  (AMZN) - Get Report rallying 11.7% and 7%, respectively, capitalizing on the coming failures of many retail competitors. 

The bounce in 2008 after the TARP bailout announcement was following by more pain, Cramer recounted. Investors need to expect more downside from here as well.

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Executive Decision: Regeneron

For his "Executive Decision" segment, Cramer spoke with George Yancopoulos, cofounder and chief scientific officer of Regeneron  (REGN) - Get Report the biotech that closed up 11.5% Tuesday on the company's announcement of progress toward treating Covid-19. 

Yancopoulos said that now is a great time for the biotech industry to step forward and show people just how much they can make a difference in all of our lives. What you're seeing now with these many announcements are only just the beginning of what's possible. 

Yancopoulos said there are four things happening right now. First, public health officials are attempting to contain the spread of the disease and give our healthcare industry time to catch up. Second, companies are looking to see if old treatments that are already approved can be used to treat this new virus. Third, companies are racing to develop and test vaccines to help prevent future outbreaks. And finally, biotechs are working on all new treatments for this virus. 

This week, Regeneron began testing an existing anti-inflammatory treatment that is showing a lot of promise in helping the most severe of coronavirus cases. Yancopoulos said the treatment must still be proven, but there is a lot of hope and it is being administered to patients right now.

Regeneron is also testing what looks to be another promising new treatment for Covid-19. He said they've gotten lucky so far and are beating all of their initial timelines. This treatment will be tested in patients by the summer, Yancopoulos said.

Executive Decision: Facebook

In his second "Executive Decision" segment, Cramer spoke with Sheryl Sandberg, COO of Facebook  (FB) - Get Report, which announced Tuesday that it will invest $100 million in cash grants for up to 30,000 small businesses. 

Sandberg said Facebook has been hearing a lot from small businesses since the coronavirus began and they need assistance, especially those that have been forced to shut their doors. She said many businesses can't depend on their bank or local government for help, which is why Facebook is planning to help where they can. Facebook is open to doing even more in the future, she added, and they're working as fast as they can to get the program up and running and get this much-needed money to small businesses.

Sandberg said Facebook itself is shuttering its offices and encouraging all employees to work from home to prevent the spread of the virus. It is also giving all employees a $1,000 bonus to help them with added expenses from the disruptions the virus is causing.

Finally, Sandberg said that Facebook remains vigilant about spreading important safety information and combating harmful disinformation about the virus and the spread of the pandemic.

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Off the Tape: Amwell

In his "Off The Tape" segment, Cramer sat down with Roy Schoenberg, president and co-CEO of the privately-held telemedicine provider Amwell, to learn how his company is helping to fight Covid-19. 

Schoenberg said Amwell serves both health insurance providers and health system providers with a host of different services. With the coronavirus, those services are in even more demand.

As testing becomes more available, people are going to have questions about whether to be tested, where to be tested and how to best get tested -- all questions that can be answered by telemedicine. Additionally, the main treatment right now is self-quarantine, another perfect opportunity for telemedicine to monitor patients and provide answers without risking public health.

But telemedicine isn't just about this pandemic, Schoenberg added. Many of their patients are elderly people managing chronic diseases like diabetes and health disease. These are the people that shouldn't be going to crowded waiting rooms and risk infection.

Cramer's Prescription 

In his "No-Huddle Offense" segment, Cramer opined on what needs to happen to solve the coronavirus crisis. He said we need to think big to solve this crisis and there are three things that must happen. 

First, we need to protect our older generation. We are a service economy, one that thrives on younger people congregating. But the coronavirus has a higher mortality rate among those over 70, so we can't risk younger people spreading the disease to the elderly.

Second, Cramer said we need to help small businesses pay for the coming disruptions. The stimulus that's been talked about is a good start, but we'll need more to keep businesses in business until the economy returns to normal. 

Finally, Cramer said, the government is going to need to make investments in travel and leisure companies to keep them afloat during these difficult times. As the economy recovers, it can sell these investments, likely for a healthy profit.

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 Tuesday evening:

Square  (SQ) - Get Report: "I like Square very much. They will come out ahead in the end."

Alcoa  (AA) - Get Report: "We are in a recession and that's the worst stock to own during a recession."

Nucor  (NUE) - Get Report: "It yields 5.2% and that's the best stock in this group."

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