Stocks opened mixed Monday as markets began the final week of the fiscal third quarter.
The Dow Jones Industrial Average was up 56.62 points, the Nasdaq Composite was down 86.90 points and the S&P 500 was down 7.91 points.
Jim Cramer and Action Alerts PLUS senior analyst Jeff Marks discussed the gridlock on Capitol Hill as Democrats attempt to move the Biden agenda forward amid debt ceiling talks and soaring oil prices as well as potential geopolitical impact from the German election and the ongoing Chinese crackdown on big business.
Watch the full interview in the video below:
Investors Eye D.C. Gridlock
Three major political headlines are dominating investor attention this week as Democrats and Republicans debate the bipartisan infrastructure bill and the $3.5 trillion budget resolution as the threat of a government shutdown looms on October 1.
House Speaker Nancy Pelosi has set a Thursday date for a floor vote on the $1 trillion bipartisan infrastructure bill, which she previously said would only occur if she had the votes to pass it.
“We’re going to pass the bill this week,” Pelosi told ABC’s 'This Week' program. “I’m never bringing a bill to the floor that doesn’t have the votes.”
Democrats have remained a house divided as progressives and moderates debate the price tag of President Biden's $3.5 trillion agenda. Progressives have used the bipartisan bill as leverage for obtaining the passage of the budget resolution.
Meanwhile, Democratic congress members aim to prevent a government shutdown and lift or suspend the $28.4 trillion debt ceiling as Republicans largely refuse to raise the debt limit.
Action must be taken by midnight Thursday in order to prevent a government shutdown.
Pain at the Pump as Oil Prices Surge
Oil prices surged to their highest levels in three years as a rolling power crisis triggered government shutdowns in China and investors fear a global power crisis, TheStreet's Martin Baccardax reported.
European natural gas prices have risen 500% over the last year. In Britain, the majority of gas stations are closed amid panic buying and shortages linked to a shortage of drivers and haulers.
Gasoline prices have also been on the rise in the U.S. with the average price of gasoline sitting at $3.189 according to AAA data.
WTI futures for November delivery started the week at $75.42 per barrel and brent contracts for the same month were up $1.41 at $79.50 per barrel, the highest in three years, Baccardax reported.
Get 'Real' With Your Investments
Analysis can only get you so far. In his latest column on Real Money, Cramer argued that if analysts incorporated more real life experience in their investing theses, a lot more money could be on the table.
Case in point? Salesforce.
"For ages, people told me that Salesforce was buying up companies, Mulesoft, Tableau and now Slack, to keep up growth and that the acquisitions masked the lack of organic growth. For ages I told people that Marc Benioff is putting together a suite of unbeatable cloud products but he needed all the collaborative and analytical product he could get.
Yesterday, at his analyst meeting, he revealed that he's got incredible organic revenue growth and increasing gross margins. That meant these acquisitions are accretive and necessary and there's not alchemy here, something that everyone should have known by the burgeoning free cash flow, but didn't because margins and revenues were all they care about.
Now analysts are falling all over themselves to recommend the stock because Marc gave them what they want. What they didn't realize is he had been giving it to them all of the time."