Stocks opened lower following disappointing results from the ADP National Employment Report for July and ahead of the closely watched monthly jobs report Friday.
The ADP reported that the U.S. private sector added 330,000 jobs in July versus consensus expectations of 695,000.
The Dow Jones Industrial Average opened down 160.43 points, the Nasdaq Composite was down 14.06 points and the S&P 500 was down 14.73 points.
Jim Cramer and Action Alerts PLUS senior analyst Jeff Marks discussed Cramer's decision to reactivate 'WATCH,' IPO fears, the ADP jobs report, Robinhood (HOOD) - Get Robinhood Report, Lyft (LYFT) - Get Lyft Inc Class A Report, SEC chair Gary Gensler and much more.
Watch the full interview on TheStreet Live in the video below:
What Are You 'WATCHing?'
When the situation changes, so do you. Jim Cramer took to Real Money Tuesday to tell investors that the continued prevalence of the delta variant and increased precautionary safety measures across the scope of society make a "pseudo-lockdown" trading mentality necessary.
"Yeah, the death rate is low, but the breakthroughs are getting plentiful and dangerous. How dangerous? It's convinced portfolio managers that moves must be made and made fast to profit from it," Cramer wrote.
So what's the game plan?
Cramer said it's time to reactivate "WATCH," his beloved group of Walmart (WMT) - Get Walmart Inc. Report, Amazon (AMZN) - Get Amazon.com, Inc. Report, Target (TGT) - Get Target Corporation Report, Costco (COST) - Get Costco Wholesale Corporation Report and Home Depot (HD) - Get Home Depot, Inc. (HD) Report.
Other names on his list include UPS (UPS) - Get United Parcel Service, Inc. Class B Report, FedEX (FDX) - Get FedEx Corporation Report, Apple (AAPL) - Get Apple Inc. (AAPL) Report and Robinhood. Yes, Robinhood.
"I know, Robinhood isn't of the highest quality. But I endorse it as a stock for what it can become, not what it is now, and that's why I think it is roaring," Cramer wrote.
Are IPOs the Path to 1929?
Despite his continued concern about the delta variant, as well as China and the looming debt ceiling crisis, it's IPOS that are keeping Cramer awake at night - when he tries to sleep that is.
2021 has seen 304 initial public offerings so far, putting 2021 on par for a record year.
On Mad Money Tuesday, Cramer warned that IPO fatigue is here and it's here to stay.
"IPOs have always been tilted in favor of investors, Cramer explained, and are designed to always see a first-day surge. But lately, your first day of trading is a coin toss, Cramer said, and the days that follow are anyone's guess. Even the much-hyped Robinhood couldn't break free of the downward IPO spiral," Scott Rutt wrote in his Mad Money Recap.
Walmart, Amazon, Apple, AMD, UPS and Costco are holdings in Jim Cramer's Action Alerts PLUS charitable portfolio.
Hear what Jim Cramer is only telling members of his Action Alerts PLUS investing club in Wednesday's Daily Rundown.