"I can't tell you what normal looks like in an America dealing with COVID-19 and systemic racism," Jim Cramer told his Mad Money viewers Wednesday, but one thing that has stayed the same is Americans' desire to "shop until we drop." That's how the markets were able to rally again, as investors rotated into the "return-to-normal" stocks.
Wall Street was buoyed by Automatic Data Processing's ADP National Employment Report, which saw a decline of only 2.76 million private sector jobs. Many had expected that number to be much worse, approaching nine million. That led to strength in retail, banks, casinos and any company able to post strong earnings against easy comparisons, like Stanley Black & Decker (SWK) - Get Report, which rallied 5.6%.
That money came at the expense of bonds, drug stocks, gold and even the FAANG stocks, all of which ended the day lower. Investors were even selling the stay-at-home stocks that have carried the markets over the past few weeks. Cramer said he expected continued strength in retail and the rails, along with Caterpillar (CAT) - Get Report and Boeing (BA) - Get Report.
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What should investors make of the meteoric rise of Zoom Video (ZM) - Get Report? Wednesday, the company reported earnings of 44 cents a share when analysts were expecting just 11 cents. Zoom saw revenue explode higher by 169% and the company beat its own guidance by 64%.
Almost overnight, Zoom became an integral part of our world, Cramer explained. Even the company didn't expect such a dramatic transition from enterprise use to consumers using their platform to keep in touch with family and friends. Couples are even holding their weddings over Zoom. That's how the company grew from 20 million users to over 300 million users this quarter.
Are shares of Zoom done going higher after soaring 229%? Cramer said this stock still has plenty of room to run as this new way of communicating is here to stay.
Executive Decision: CrowdStrike
Kurtz said the bad guys are taking advantage of the COVID-19 crisis to prey on those working from home. Ransomware attacks, where hackers encrypt your files, forcing you to pay to unlock them, is becoming big business, he said, and there is little people can do to stop them.
That's why CrowdStrike has become an essential service for many companies, helping to keep their employees and their data safe. Hackers are always looking to steal intellectual property, travel information, planning documents -- anything they can sell.
When asked whether working from home is here to stay, Kurtz said he expects a percentage of employees will be staying at home permanently. "This is not a one-time hit," he said, "working from home is a systematic change" that will be with us for good.
Executive Decision: B&G Foods
For his second "Executive Decision" segment, Cramer also spoke with Ken Romanzi, president and CEO of B&G Foods (BGS) - Get Report, the packaged foods maker that saw sales surge 57% during the pandemic.
Romanzi said B&G's portfolio of brands has done well during the pandemic, but added that consumers aren't just stocking up on their products, consumption is up as well. He expected these trends to continue as people stay at home more and eat out a little less than they did before.
B&G has been innovating with new products, line extensions and cross promotions, Romanzi added, and they have a long pipeline of new products on the way for consumers.
When asked about their business model, Romanzi said B&G remains a serial acquirer of great brands that they revitalize to produce cash flows for their shareholders. The company remains committed to their dividend which currently yields 7.9%. B&G Foods is in almost every aisle of the grocery store, Romanzi said, with brands consumers love like Ortega, Green Giant, Mrs. Dash and Pirate's Booty.
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Special Purpose Acquisition Companies
Beware of SPACs, Cramer cautioned viewers, these special purpose acquisition companies aren't what they used to be and that makes them dangerous to invest in.
Cramer explained that special purpose acquisition companies used to be called "roll-up companies" that existed as a way for a single entity to make multiple acquisitions in an industry to gain dominant market share. Today however, they exist as a way to merge with private companies as a way to bring them public without the traditional IPO process.
That's the case with VectoIQ (VTIQ) - Get Report, which will be merging with Nikola Motors tomorrow. Nikola is a private company hoping to produce hydrogen fuel-cell trucks and fueling stations. Cramer said the problem is that VectoIQ has already rallied from $10 a share to $34 and after the merger, it will be impossible to value the combined company, which isn't likely to have a marketable product until 2023.
We've seen more and more of these SPAC IPOs, Cramer said. DraftKings (DKNG) - Get Report and Virgin Galactic (SPCE) both came public in similar deals. However, while DraftKings may be attractive at lower levels, Virgin Galactic is another company that isn't likely to have any profits for years.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Wednesday evening:
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At the time of publication, Cramer's Action Alerts PLUS had a position in MSFT.