It's finally Friday!
Here are some of the topics that Jim Cramer and Katherine Ross will be discussing in the video below.
Morgan Stanley & The Banks
Morgan Stanley (MS) - Get Report reported earnings that came in at $2.19 per share, which is up 116% from the same period last year and firmly ahead of the forecasts for $1.70 per share. Revenues rose 65% to $15.7 billion, which topped analysts' forecasts of a $14.1 billion tally.
“The Firm delivered record results," said CEO James Gorman. "The integrated Investment Bank continues to thrive. We closed the acquisition of Eaton Vance which takes Investment Management to over $1.4 trillion of assets. Wealth Management brought in record flows (and) the Firm is very well positioned for growth in the years ahead.”
TheStreet's Martin Baccardax noted that, in an otherwise impressive first-quarter earnings report. which included record inflows for its wealth management division, Morgan Stanley reported a $911 million loss linked to what is described as a "single client event."
"The current quarter includes a loss of $644 million related to a credit event for a single prime brokerage client," Morgan Stanley noted in its Friday filing and later identifying as Archegos Capital on its conference call with investors. "And $267 million of subsequent trading losses through the end of the quarter related to the same event."
Jim Cramer discusses DraftKings, Pfizer, bank earnings and China in the video below:
Should China Concern Investors?
"Is China making any effort at all to try to ameliorate the deteriorating relationship between their country and ours? It seems to get worse by the day even as there had been hope in the business community that things would get less tense and the Chinese economy is booming - witness the 18% economic growth announced just last night," Cramer wrote.
"It would have been easy for the Chinese to walk back any of the charges that former Vice President Mike Pence leveled at Hudson Institute in October of 2018. Pence used that appearance to lay out a new cold war strategy not unlike the one our nation used to combat the old Soviet Union after World War II."
"In that speech, the strongest ever by an official against China, the vice president accused China of everything from meddling in state and local elections in our country to torturing and imprisoning one million Muslims, while cracking down on Buddhists causing 150 monks to set themselves on fire," he continued.
Is it Time to Buy Healthcare?
"All year long, we've seen investors swapping out of the stay-at-home stocks in favor of the great reopening stocks. Until now, that meant swapping into one thing -- the cyclicals. But today, that trade ended and investors took a pause on the cyclicals to give some love to technology and healthcare," wrote TheStreet's Scott Rutt in his Mad Money recap.
"These are strange times, Cramer told viewers. The Dow Jones Industrial Average only hits new highs when the economy is booming. And when the economy is strong, so too are interest rates. But on Thursday, we saw interest rates fall, which make technology and healthcare also attractive," he continued.
"The move in healthcare was pronounced, with UnitedHealth Group (UNH) - Get Report soaring 3.8%, GlaxoSmithKline (GSK) - Get Report up 4.3% and Eli Lilly (LLY) - Get Report gaining 1.6%. Even Johnson & Johnson (JNJ) - Get Report was able to eke out gains. The rise in healthcare was met with a similar move in tech, where Cramer favorites Twilio (TWLO) - Get Report and Okta (OKTA) - Get Report rallied 4.8% and 5.5% respectively."
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