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Politics and Stocks: Cramer's 'Mad Money' Recap (Wednesday 2/5/20)

Jim Cramer always looks for clues in the annual State of the Union address. This year, Cramer says, it's good to be a stock investor.
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It's a great time to be a stock-market investor, Jim Cramer told his Mad Money viewers Wednesday. Despite our nation's problems and those around the globe, one thing was clear from President Trump's State of the Union address Tuesday night: he cares about the stock market.

Love him or hate him, Cramer said, Trump's policies have helped juice the market and the economy, keeping unemployment and interest rates low and our stock market rising. 

Every year, Cramer said, he looks for ideas and proposals in the State of the Union address that shareholders can profit from. This year, that theme was that Trump is paying attention to the stock market. 

Mad Money isn't about politics, but politics can influence your portfolio, Cramer noted. The markets dislike Sens. Bernie Sanders and Elizabeth Warren, fearing their policies would be anti-business. The markets like candidates that maintain the status quo and promote laissez-fair capitalism. 

Cramer said it's the intertwining of Trump's fortunes with the stock market that allows investors to overlook all sorts of concerns that would normally have been paramount.

Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. 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.

Executive Decision: Clorox

For his "Executive Decision" segment, Cramer spoke with Benno Dorer, chairman and CEO of Clorox  (CLX) , the consumer goods giant that just posted a 15-cents-a-share earnings beat that sent the stock up 6.5% over the past week. 

Cramer first asked about the coronavirus, as bleach is one of the most effective ways to kill viruses. Dorer said Clorox is ready to help combat coronavirus with disinfecting sprays and wipes and is focused on educating consumers on how best to use their products to stay healthy this flu season. So far, he said there are no inventory shortages, but Clorox is building inventories just in case. 

Turning to the quarter, Dorer said Clorox saw 3% sales growth with better gross margins and profits. They are well positioned to excel in the second half of 2020. 

When asked about sustainability, Dorer said that sustainability is good for business. That's why Clorox has committed to reducing their packaging by 50% over the next 10 years, while also reducing the amount of plastic and water they consume. Everything is being rethought, he said, from better logistics to compostable wipes.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Executive Decision: Boot Barn

In his second "Executive Decision" segment, Cramer checked in with Jim Conroy, president and CEO of Boot Barn  (BOOT) , the western apparel retail chain. 

Conroy said the company saw some weakness in the work apparel segment this past quarter, but he noted that while some investors saw that as a negative, it's also proof that their diversification strategy works. The company was still able to post a 5% increase in same-store sales. He added that the weakness in work apparel is likely transitory. 

When asked about their strategy, Conroy said their focus is on bringing new customers into the brand. Boot Barn began with Western apparel, then expanded into work apparel and now fashion, but there are still plenty of consumers who have never heard of Boot Barn. 

When asked how the coronavirus in China might affect the company, Conroy said they expect a delay in some shipments from the shuttering or factories in China, but overall, he is not expecting any material impact on earnings. He was also bullish on the company's outlook in Texas, where sales have been slowly rebuilding to where they were at the peak of the oil shale boom.

Speedbump for Tesla

Today, the sellers finally arrived for Tesla  (TSLA) , Cramer told viewers. But even with the stock's 17% plunge, shares are still up 75% for the year and Cramer said they've got a lot more room to run. 

Cramer explained that most of Tesla's huge run to $900 a share was due to one man -- fund manager and Tesla evangelist Rob Baron, who owns 1.6 million shares. Baron gave an interview on CNBC on Tuesday and the bulls piled into the stock ahead of what was they assumed to be a very bullish outlook for the electric car maker. Baron didn't fail to deliver. 

After that interview, there was no place to go but lower, Cramer said. But after the flippers and day traders made their exit, they were followed by genuine sellers also locking in their gains. 

Cramer said Tesla is not like bitcoin or last year's parabolic move in the cannabis stocks. Tesla is the real deal, he said, and has a great products, a great business model and incredible growth. Shares will resume their march back to $900, and will keep rising from there.

Executive Decision: Teledoc

For his final "Executive Decision" segment, Cramer sat down with Jason Gorevic, CEO of the virtual healthcare provider Teladoc Health  (TDOC)

Gorevic said Teladoc helps patients get the medical care they need without having to go where the sick people are. He said they have been especially in demand this flu season, which has been more severe than normal. Teladoc typically see more than 10,000 patients every day, with 25% of their business coming internationally. 

When asked about coronavirus, Gorevic explained in the U.S., it's more concern than real threat. What's important is educating doctors on properly screening for coronavirus and quelling people's fears. 

Gorevic was excited about Teladoc's partnership with CVS Health  (CVS) , saying that CVS's new HealthHubs will bring Teladoc virtual services into stores to provide access to specialists, offering a bigger variety of services than ever before.

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 Wednesday evening: 

Builders FirstSource  (BLDR) : "Lower interest rates are helping. I like the stock."  (BILL) : "I don't think there's anything wrong with it. That's a good one." 

Berkshire Hathaway undefined: "I'm a buyer of Berkshire." 

Walgreens Boots Alliance  (WBA) : "No, we can't go there. People don't like CVS Health CVS and that's a good one." 

Oracle  (ORCL) : "Oracle is not great, but its not bad either. It's just OK. I don't have a reason to buy it." 

Iridium Communications  (IRDM) : "I like this one very much. I like the story." 

Tyson Foods  (TSN) : "The stock will sell off after the quarter, but that's the time to buy."

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At the time of publication, Cramer's Action Alerts PLUS had a position in CLX, TSN, CVS.