Markets opened mixed to kick off a fresh week of trading with the Dow down 82.78 points, the Nasdaq up 42.03 points and the S&P 500 trading close to flat.
Jim Cramer and Action Alerts PLUS senior analyst Jeff Marks discussed Virgin Galactic (SPCE) - Get Virgin Galactic Report, Disney (DIS) - Get Walt Disney Company Report, Tesla (TSLA) - Get Tesla Inc Report and the impact of vaccinations heading into earnings season.
Watch the full interview in the video below:
What Do Vaccines Mean for the Markets?
Cramer took to Real Money to break down the role that human behavior plays into the markets as the big banks kick off the quarterly earnings season with results from JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. (JPM) Report and Goldman Sachs expected Tuesday.
"When you try to make a judgment about the direction of the stock market or of individual stocks you are, per se, thinking about what human behavior will occur. You are assuming that people will act rationally and that they will not do things against their interests," Cramer wrote.
Where can the impact of rationality be most clearly seen? Cramer wrote that despite the known efficacy of vaccines, millions across the U.S. remain vaccinated and as the Delta variant of the virus continues to take hold globally, the risk to the market follows closely at its heels.
As earnings season begins, the Delta variant comprises over half of all COVID cases in the U.S., impacting primarily unvaccinated individuals, according to data from the Centers for Disease Control and Prevention.
"I think we will be surprised how much [vaccine] absenteeism will impact the numbers and how free choice has trumped sickness in a pattern never seen before," Cramer said.