After a big move in the stock market this week, Jim Cramer told his Mad Money viewers Friday that he's worried there's too much complacency and that parts of this market are vulnerable to a pullback. That's why his game plan for next week's action includes an abundance of caution.
On Monday, Cramer said he's hoping to hear about progress on a stimulus deal in Washington. Main Street needs stimulus, he said, and we're likely to see a selloff Monday if we don't get positive news. Cramer also hopes to hear about a possible merger between Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report and Xilinx (XLNX) - Get Xilinx, Inc. (XLNX) Report. Cramer said this deal would make a lot of sense, but only at the right price.
Next, on Tuesday, banks begin reporting with JP Morgan Chase (JPM) - Get JPMorgan Chase & Co. (JPM) Report and Citigroup (C) - Get Citigroup Inc. Report. Cramer said he wants to hear whether these banks can make money given low interest rates and increased scrutiny from Washington. We'll also hear from Johnson & Johnson (JNJ) - Get Johnson & Johnson (JNJ) Report, but Cramer said he's worried that the stock has risen too much ahead of earnings.
Wednesday brings earnings from Bank of America (BAC) - Get Bank of America Corp Report, Wells Fargo (WFC) - Get Wells Fargo & Company Report and Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report, but Cramer said the highlight will be Zoom Video (ZM) - Get Zoom Video Communications (ZM) Report, which has prospered during the pandemic. Cramer was also anxious to hear whether United Continental (UAL) - Get United Airlines Holdings, Inc. Report feels its needs stimulus in order to survive.
Then on Thursday, we'll get earnings from Walgreens (WBA) - Get Walgreens Boots Alliance Inc Report and Morgan Stanley (MS) - Get Morgan Stanley (MS) Report. Cramer was bullish on Morgan Stanley, but said Walgreens needs to share its plan got growth.
On Friday, we'll hear from oil services company, Schlumberger (SLB) - Get Schlumberger NV Report, which may see a bounce on higher oil prices. Apparel maker VF Corp (VFC) - Get V.F. Corporation Report will also report, but Cramer said he likes Levi Strauss (LEVI) - Get Levi Strauss & Co. Class A Report and Lululemon Athletica (LULU) - Get Lululemon Athletica Inc (LULU) Report more.
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Executive Decisions: Okta
In his first "Executive Decision" segment, Cramer spoke with Todd McKinnon, co-founder and CEO of Okta (OKTA) - Get Okta, Inc. Class A Report, the cybersecurity company with shares up 104% for the year.
McKinnon explained that Okta got its start providing workforce identity solutions, helping employees securely connect with their employer. But today, he noted, everyone is going digital and companies also need secure ways to connect with their customers as well. That's why Okta also has tools for companies to interact with their customers accurately and securely.
McKinnon added that personalization is becoming increasingly important to the customer experience and that level of customer service isn't possible if you don't know who your customers are and exactly who you're interacting with.
Okta is also active in this year's election, sponsoring vote.gov, a website to help make registering to vote easier. McKinnon said 92 million eligible voters didn't vote in 2016 and vote.gov hopes to change that.
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Executive Decision: Visby Medical
For his second "Executive Decision" segment, Cramer also spoke with Dr. Adam De La Zerda, CEO of the privately-held Visby Medical, which just received an emergency use authorization for a personal, one-time-use COVID-19 test that provides results in just 30 minutes.
De La Zerda explained that Visby's PCR test utilizes all of the same steps that big PCR machines use, only the process has been miniaturized to fit in the palm of your hand. He said their test provides the speed and accuracy people demand for COVID-19, but it can also be used for bacteria and viruses of all kinds.
The goal is to decentralize PCR testing, De La Zerda said, so that tests can be made readily available in hospitals, nursing homes, and large events around the globe. Visby is ramping up production as fast as they can. De La Zerda said they are adding 25 people a week to their team and are working with great partners.
"I'm a big believer in speculation," Cramer told viewers, but only if it's informed speculation. Case in point: hydrogen. For years, investors have been losing money betting on hydrogen as a bridge fuel to a renewable future. But now, the technology may have finally caught up with the hype, making hydrogen fuel cells worth speculating on.
Cramer said Linde (LIN) - Get Linde plc (LIN) Report is the safe way to play the hydrogen market. The company has been trialing hydrogen buses and trains in Germany and China for the past 18 months and even if 1% of all heavy-duty trucks converted to hydrogen, it would create a $20 billion opportunity for Linde.
The second, more speculative way to play hydrogen is with Plug Power (PLUG) - Get Plug Power Inc. Report. Cramer said this company has been making hydrogen-powered forklifts for 20 years. The company's products charge significantly faster than their all-electric counterparts and are already in use at major warehouse facilities around the globe. Cramer said Plug Power is more risky than Linde, which is why it should only be bought on a pullback.
In his No-Huddle Offense segment, Cramer said it would be great if we all had President Trump's healthcare plan, one that airlifts us to world-class medical centers where we can all get experimental treatments and return to work just days later. But until we have a vaccine, it's productive to have a fear-factor portfolio, one that benefits from the on-going pandemic.
Cramer included 10 stocks in his portfolio. They included Amazon (AMZN) - Get Amazon.com, Inc. Report, Costco (COST) - Get Costco Wholesale Corporation Report, Roku (ROKU) - Get Roku, Inc. Class A Report, Peloton (PTON) - Get Peloton Interactive, Inc. Class A Report, Etsy (ETSY) - Get Etsy, Inc. Report, Thor Industries (THO) - Get Thor Industries, Inc. Report, Take-Two Interactive (TTWO) - Get Take-Two Interactive Software, Inc. Report, Domino's Pizza (DPZ) - Get Domino's Pizza, Inc. Report and both UPS (UPS) - Get United Parcel Service, Inc. Class B Report and FedEx (FDX) - Get FedEx Corporation Report. These are 10 stocks that will help you sleep at night until the pandemic is finally behind us.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Friday evening:
Trane TT: "I like Trane. This is an American company doing great things."
Nokia undefined: "Nokia doesn't have the quality we need."
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At the time of publication, Cramer's Action Alerts PLUS had a position in GS, JNJ, JPM, AMD, GS, AMZN, COST.