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Take a Breather: Cramer's 'Mad Money' Recap (Thursday  7/16/20)

Jim Cramer says investors should use this pullback as an opportunity to map out where the market is headed and plan their strategies to profit from the next moves.
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Markets can't go up every day, Jim Cramer admitted to his Mad Money viewers Thursday. But Thursday's decline is no reason to panic, Cramer said. Just use the weakness as an opportunity to buy high-quality stocks.

Cramer called the day's move "pure profit taking," as investors fretted over a derailed recovery, stalled reopening plans, and valuations that have become too stretched to justify. He also called out escalating trade tensions with China, which include targeting of some high-profile tech giants like Apple  (AAPL) - Get Apple Inc. (AAPL) Report. Cramer reiterated that investors should own Apple for the long term and not try and trade it.

So with the future of work still uncertain at many companies, what should investors consider buying? Cramer offered up a few suggestions, including Abbott Labs  (ABT) - Get Abbott Laboratories Report, Johnson & Johnson  (JNJ) - Get Johnson & Johnson (JNJ) Report and PepsiCo  (PEP) - Get PepsiCo, Inc. Report among the recession stocks. He also suggested Morgan Stanley  (MS) - Get Morgan Stanley (MS) Report for a safe bet in the financial sector. As for tech, Cramer recommended Alphabet  (GOOGL) - Get Alphabet Inc. Class A Report, Salesforce.com  (CRM) - Get salesforce.com, inc. Report and Amazon  (AMZN) - Get Amazon.com, Inc. Report.

Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

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Executive Decision: Barrick Gold

In his first "Executive Decision" segment, Cramer spoke with Mark Bristow, CEO of Barrick Gold Corp.  (GOLD) - Get Barrick Gold Corporation Report for an update on the company.

Bristow said after a brief shutdown for COVID-19, Barrick's mines are back in full operation. He said the company experienced a limited number of infections and was very vigilant about isolating and contact tracing anyone who was exposed to the virus.

Turning to their business, Bristow said the market is strong for both gold and copper, and with gold prices on the rise, it's always "more enjoyable" to be in the mining business. Bristow was very bullish on the assets Barrick acquired from Newmont Mining, calling them "fantastic" for the combined company.

Finally, Bristow said that the gold mining business needs to grow up and become more modern. He said it's imperative that their industry aligns their values with the expectations of future generations on important issues like the environment and social responsibility. That's why these remain important initiatives at Barrick.

Executive Decision: Domino's Pizza

For his second "Executive Decision" segment, Cramer also spoke with Ritch Allison, CEO of Domino's Pizza  (DPZ) - Get Domino's Pizza, Inc. Report, a stock that soared to new highs earlier this week.

Allison said Domino's saw a pickup in sales this quarter and was able to sustain those levels, He said customers were quick to adopt their new contactless takeout and delivery options and new customer acquisitions were particularly strong for delivery throughout the quarter.

Allison noted that on average, 75% of Domino's orders are now digital, with highs peaking over 80%. He was upbeat about the company's new chicken wings. He said the company is not only focused on new items but also making their existing items better.

Domino's has committed to donating 10 million slices of pizza to aid in the pandemic.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Off the Tape: Acorns

For his "Off The Tape" segment, Cramer checked in with Noah Kerner, CEO of the privately-held Acorns, a fintech that helps people save and invest.

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Kerner explained that Acorn simply rounds up every purchase you make and then applies the difference into diversified portfolios for investing and retirement. The company also encourages customers to make regular recurring investments and even has accounts where parents can invest for their kids.

The secret to investing is making regular payments and using the magic of compounding, Kerner said. If you were to invest just $5 a day at birth, you'd have over $4 million by the time you retire, he said.

Americans aren't particularly good at savings or investing, Kerner said, which is why Acorn does its best to educate everyone on how to have a better financial future.

UnitedHealth Bounces Back

In his "No Huddle Offense" segment, Cramer said when a company raises its forecasts and its shares slump, that's an opportunity worth pouncing on. Case in point, UnitedHealth Group  (UNH) - Get UnitedHealth Group Incorporated Report, which reported a terrific quarter Wednesday, only to see its shares fall by $4. On Thursday, however, the stock received multiple upgrades and that slump was quickly reversed.

Cramer said he expects similar patterns in both Abbott Labs  (ABT) - Get Abbott Laboratories Report and Johnson & Johnson JNJ. Abbott is just getting started with its COVID testing products, while J&J is hard at work on a COVID-19 vaccine. Both stocks fell when they reported, and Cramer said that's an opportunity as analysts are sure to notice soon.

Lightning Round

Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Thursday evening:

Teladoc Health  (TDOC) - Get Teladoc Health, Inc. Report: "This valuation is getting stretched, so I want to see this one pull back 10% before you buy."

Wex  (WEX) - Get WEX Inc. Report: "I would stay long with this one. I think it's pretty good. "

Boeing  (BA) - Get Boeing Company Report: "I think the risk/reward is getting better with Boeing. "

Coca-Cola  (KO) - Get Coca-Cola Company Report: "Own the common stock and reinvest the dividends. "

FireEye  (FEYE) - Get FireEye, Inc. Report: "This stock barely rallied today. I like Palo Alto Networks  (PANW) - Get Palo Alto Networks, Inc. Report and CrowdStrike  (CRWD) - Get CrowdStrike Holdings, Inc. Class A Report and ZScaler  (ZS) - Get Zscaler, Inc. Report more."

Ingevity  (NGVT) - Get Ingevity Corporation Report: "This is the kind of industrial I'd want to buy right here."

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, JNJ, PEP, ABT, GOOGL, CRM, AMZN.