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Time for Nuance: Cramer's 'Mad Money' Recap (Tuesday 11/10/20)

Jim Cramer says investors shouldn't just dump the pandemic stocks and buy recovery stocks. The markets, the economy, and the outlook just aren't that binary.
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Don't get caught in the confusing cross currents of this stock market, Jim Cramer cautioned his Mad Money viewers Tuesday. The old normal is slowly dying, but the new normal struggles to be born, Cramer said, and that means more turbulent times ahead for Wall Street.

Everyone is excited to anticipate the return to the "normal" of a COVID-free world, Cramer explained, and Monday's vaccine and therapeutics news did indeed reveal a light at the end of the tunnel. But we still have a long way to go until a vaccine is available in significant quantities and some of the new normal trends we've seen recently are likely here to stay.

The stay-at-home stocks like Amazon  (AMZN)  and Etsy  (ETSY)  will continue to prosper, even as the pandemic vs. recovery story ping-pongs almost daily. Cramer said the surge in housing will also remain intact, as all those who flocked to the safety of the suburbs aren't likely to return. D.R. Horton  (DHI)  showed us that Tuesday with a 66% rise in earnings.

The bull market in autos will continue, Cramer added, as cars are still the safest way to travel. He recommended underdog Ford Motor  (F)  and Carvana  (CVNA)  as investments.

Retail will remain a mixed bag, as many smaller retailers and restaurants are dangerously short on cash. Simon Property Group  (SPG) , a retail REIT, told us Tuesday that many of its clients still aren't paying rent.

As for tech, Cramer said he doesn't see a lot of downside after Monday's sell off. Tech is still needed more than ever. He was also bullish on the China stocks, like Boeing  (BA) , Honeywell International  (HON)  and 3M  (MMM) , as President-elect Biden will most certainly have a more relaxed view on trade.

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Salute to Service

In a special "Salute to Service" segment in recognition of Veteran's Day, Cramer said businesses that hire veterans tend to outperform and have great long-term outlooks. And no one knows that better that the 200-member companies in the Veteran Jobs Mission coalition.

The Veteran Jobs Mission began in 2011 when forward-thinking CEOs like Kevin Johnson of Starbucks  (SBUX)  and Jamie Dimon of JPMorgan Chase  (JPM)  set a goal to create 100,000 new jobs for returning service members. That goal was quickly exceeded, leading the coalition to raise its goal to one million new jobs.

So far, the Veteran Jobs Mission has created more than 686,000 new jobs and includes over 200 members, including companies like Verizon  (VZ) , Target  (TGT) , CSX  (CSX) , Johnson & Johnson  (JNJ)  and Coca Cola Co.  (KO) . What do all of these companies have in common? Cramer said they're all leaders in their field and they outperform the market overall.

Cramer saluted their efforts to help returning service members transition back to civilian life.

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Executive Decision: Beyond Meat

In his first "Executive Decision" segment, Cramer spoke with Ethan Brown, president and CEO of Beyond Meat  (BYND) , the plant-based meat provider that saw its shares plunge 16.9% after McDonald's  (MCD)  announced a new McPlant burger without mentioning Beyond Meat.

Brown said he couldn't comment directly on McDonald's announcement, other than to say that Beyond Meat still has a great partnership with McDonald's. He said the news is great for the overall plant-based protein market.

Brown was also excited about their recently announced partnership with Pizza Hut to provide plant-based sausage for Beyond-branded pizza options.

Turning to the company's recent earnings miss, Brown explained that the shortfall was 100% related to restaurants and food service shutting down from COVID-19. He said in the second quarter, the restaurant slowdown was masked by consumers stocking their homes, but it was never expected that those trends would offset the loss of restaurant dining. Brown remained encouraged by their 52% repeat customer rate and said they will return to full growth once restaurants return.

Executive Decision: Campbell Soup

For his second "Executive Decision" segment, Cramer also spoke with Mark Clouse, CEO of Campbell Soup  (CPB)  and a retired Army veteran. Shares of Campbell are up 33% since Clouse took the helm.

Clouse said serving in the U.S. Army and leading troops was one of the greatest opportunities of his life. He said the army taught him leadership and focus, which allows everyone on the team to know exactly where they are going and why. When everyone understands the goal, he said, getting there is a lot easier.

Turning to the business of soups and snacks, Clouse said Campbell has made significant investments into its brands to become well positioned for this moment. When the pandemic began, they dove heavily into digital advertising, pairing their brands with media and experiences that were a perfect match for their consumers. Those investments have made Campbell more relevant to consumers and households.

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Outlook for FAANG stocks

In his No-Huddle Offense segment, Cramer told viewers what they should do with the FAANG stocks after this week's big market declines. He said that Facebook  (FB)  is still vulnerable to possibly $40 a share of additional losses. Meanwhile, Amazon and Netflix  (NFLX)  are both tricky stories. Once we have a vaccine, Netflix may be overvalued.

That left two of Cramer's favorites, Apple  (AAPL)  and Alphabet  (GOOGL) . He said that Apple is a terrific Biden story, while Alphabet is getting its groove back, finally monetizing YouTube.

Lightning Round

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

CarGurus  (CARG) : "I'd rather see you in Lithia Motors  (LAD) ."

AMC Entertainment  (AMC) : "Entertainment is too tricky right now. I'm not going to recommend it."

Workday  (WDAY) : "No, it's too soon for the cloud stocks. Wait for the sellers to give up, then strike."

Yeti Holdings  (YETI) : "I've loved this stock for a long time. But I need the stock to cool off. Wait for a 10% decline."

Vista Outdoor  (VSTO) : "They are an inexpensive company that I suggest you buy."

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At the time of publication, Cramer's Action Alerts PLUS had a position in AMZN, HON, BA, SBUX, JPM, AAPL, GOOGL.