Trick or Tweet: Cramer's 'Mad Money' Recap (Wednesday 10/7/20)

Trump hates being blamed for market declines, and that's what happened with his stimulus tweets. And also why big tech could be a buying opportunity.
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When the president tweets something that tanks the stock market, it's a mistake to sell, Jim Cramer told his Mad Money viewers Wednesday. That's because President Trump hates lower stock prices and almost always reverses himself.

Cramer said the same is true with Washington's desire to break up big tech. When you see bad headlines, that's your signal to start buying.

Nobody likes monopolies. Without competition, big business has no incentive to improve and consumers ultimately pay the price. But are Apple  (AAPL) - Get Report, Amazon  (AMZN) - Get Report, Facebook  (FB) - Get Report and Alphabet  (GOOGL) - Get Report really monopolies? Cramer thinks not.

While it's true that our nation is in the middle of a small business apocalypse, it wasn't caused by big tech. Cramer said Facebook not only has plenty of competition from Twitter  (TWTR) - Get Report, Snap  (SNAP) - Get Report and TikTok, it's also providing a lifeline for millions of small businesses to set up shop and advertise online.

Apple, too, has been a champion for small business, creating millions of software jobs and tens of millions of applications we all use every day. Access to Apple's ecosystem is worth every penny, Cramer said.

Amazon is a bit harder to justify, Cramer admitted, but this tech giant also supports a marketplace of millions of vendors and has sizable competition from Microsoft  (MSFT) - Get Report and Google.

Speaking of Google, Cramer said if the government were to separate Google search from YouTube, Google Health, Waymo and its other parts, the stock would actually go up, as the sum of Alphabet's parts far exceed its value as a single entity.

America's big technology companies are a national treasure, Cramer concluded, and that's why they should be bought on weakness, and not sold on negative news out of Washington.

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: Levi Strauss

In his first "Executive Decision" segment, Cramer spoke with Chip Bergh, president and CEO of Levi Strauss  (LEVI) - Get Report, the apparel maker that just posted a surprise eight-cents-a-share earnings beat when analysts were expecting a 22-cent loss. Shares of Levi surged 5% by the close.

Bergh said that while overall revenues have been lower during the pandemic, there are still areas of growth. He said the trend of "casualization" continues as more people work outside of the office and denim is still a bigger category than athleisure.

Bergh added that Levi has seen years of digitalization plans compressed into a short period of time. Online sales are booming, up over 50%, as are new options like buying online and shipping from stores or utilizing curbside pickup options.

Levi is also supporting the secondhand denim market, buying back used products and reselling them. Bergh noted the secondhand market is very popular with younger consumers and is already a $30 billion opportunity. That number is expected to double to $60 billion in the coming years.

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Executive Decision: BioReference Labs

For his second "Executive Decision" segment, Cramer also spoke with Dr. Jon Cohen, executive chairman of BioReference Labs, the COVID testing provider that is a part of Opko Health  (OPK) - Get Report.

BioReference Labs is the sole testing provider for both the NBA and NFL sports franchises. Cohen said that they have performed over 150,000 tests for the NBA, which is operating in a bubble in Florida. They've also conducted almost half a million tests for the NFL, which is operating in multiple cities across the nation.

Cohen explained that while some have criticized his company for false positives, in reality, they have implemented new protocols that automatically quarantine and retest borderline cases. That procedure, he said, has been working well as an extra step in keeping everyone safe.

In regards to the NFL, Cohen added that they are likely moving to daily testing for everyone involved, especially given how long the incubation period is before positive results appear.

Executive Decision: Exact Sciences

For his final "Executive Decision" segment, Cramer checked in Kevin Conroy, president, chairman and CEO of Exact Sciences  (EXAS) - Get Report, makers of Cologuard, the colon cancer screening test that replaces traditional colonoscopies for some people.

Conroy said that cancer remains the second largest killer in our country, claiming 600,000 people a year. Yet despite those numbers, most people are still not tested for most cancers. That's why the early data from their multi-cancer screening test is so important. It can detect up to six cancers 84% of the time with very low false-positive rates.

Conroy added that without proper screening, most people only find out about their cancers in the late stages, when it's too late for treatment. Access to screening is vital, he said.

Exact Sciences is also active in COVID-19 testing. Conroy said his company has tested hundreds of thousands of people in all 50 states and he couldn't be more proud of his team and the diagnostic industry which is stepping up to help their communities.

Even China's Economy is Better

In his "No-Huddle Offense" segment, Cramer cited the Latin phrase res ipsa loquitur, which means "the thing speaks for itself." 

The U.S. saw more new COVID-19 cases Wednesday than countries like Hong Kong, Singapore, Taiwan and South Korea have seen in the entire course of the pandemic. The reason? Their governments told everyone to wear a mask... and they did.

Cramer said President Trump may indeed feel "20 years younger" after contracting COVID-19, but the president was given world-class healthcare and an experimental drug that's not widely available to the public. Trump's refusal to embrace masks has cost us as a country, Cramer said, and now even China's economy is stronger than ours.

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 Wednesday evening:

WW International  (WW) - Get Report: "This one is too episodic and too hard. I'm going to say no. "

Tanger Factory Outlet Centers  (SKT) - Get Report: "I'm recommending no malls. I don't want people to get hurt."

Kinross Gold  (KGC) - Get Report: "It's not as good as Barrick Gold  (GOLD) - Get Report. This one is good but others are better."

K12  (LRN) - Get Report: "People like this one. It's an interesting company."

Alteryx  (AYX) - Get Report: "Alteryx is best in show and they just had a great quarter."

Sunrun  (RUN) - Get Report: "Solar energy is a winner."

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, AMZN, FB, GOOGL, MSFT.