Stocks fell as Wall Street comes off a rough week driven by concerns over what effect rising inflation would have on the U.S. recovery.
TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about how to trade AT&T after it exited its media business and sold WarnerMedia to Discovery, Amazon and markets on Monday.
AT&T's WarnerMedia and Discovery Merger
Telecom major AT&T (T) - Get Report said its WarnerMedia unit was set to merge with Discovery (DISCA) - Get Report to create a media giant valued at $43 billion.
WarnerMedia owns cable channels such as HBO, CNN, TNT and TBS as well as the Warner Bros. television and film studio.
Cramer said it's time to sell AT&T stock because they are cutting their dividend in half. Cramer also said "the Discovery-WarnerMedia combination should never have been made in the first place."
"AT&T is up which gives you a chance to reposition if you want yield," he added.
Cramer also said, "I think Discovery is too low given the fact that they have this great asset. But I don't like the communications business as much as I like Facebook (FB) - Get Report, Amazon (AMZN) - Get Report and Google (GOOGL) - Get Report. They have the money, they have had the balance sheets," he added.
Amazon: Buy Or Sell?
Cramer said $4,000 is the "bare case for Amazon."
"It's interesting [Nowak is] saying there is going to be a multiple based on earnings and at that point, it's going be cheaper vs other stocks -- that's encouraging," Cramer said.
"We're taking contrary action today and that's really important because any stock that has run this much including Nucor, I think you should trim," he said.