Victory for Stocks: Cramer's 'Mad Money' Recap (6/4/20)

It looks like a 'V-shaped recovery,' says Jim Cramer, but apparently only for the stock market -- not the U.S. economy.

We're seeing the V-shaped recovery everyone was hoping for, Jim Cramer told his Mad Money viewers Thursday. The only problem is, the recovery is in the stock market and not in our economy.

Cramer reminded viewers that the stock market doesn't represent our economy, it represents the future of big business, and in this pandemic, big business has been profiting. Today we learned that bankruptcies have surged 48%, with almost all of those being small businesses. The only major bankruptcy Wall Street has seen so far was Hertz  (HTZ) - Get Report.

The demands of social distancing have been brutal for small businesses, especially for retailers and restaurants. Big retailers, like Costco  (COST) - Get Report, sell essential items at great prices in stores with 16-foot wide aisles that help manage social distancing.

Compare that to a small restaurant that now must remove two-thirds of their tables to meet the new social distancing requirements. Big chains like Darden Restaurants  (DRI) - Get Report can make up the difference in fewer tables with takeout, but smaller restaurants cannot. 

This pandemic has changed our economy in ways we can't even imagine, Cramer concluded, but one thing we know for sure is that a lot of wealth has been transferred from small business to big business.

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Special Interview: Nancy Pelosi

In a special interview, Cramer again spoke with Democratic House Speaker Nancy Pelosi for an update on the possibility of additional stimulus for consumers and small business.

Pelosi said the Heroes Act legislation, currently working through Congress, provides additional funds for testing, tracing and treatment as well as providing money for local governments to keep medical staff, teachers and other essential personnel working. It also has provisions to put more money into the pockets of consumers to help them until the economy recovers.

Pelosi and Cramer both agreed on the importance of masks. Pelosi called them essential in slowing and stopping the spread of COVID-19. She said it's common sense and everyone should be wearing them.

Finally, Pelosi said she continues to take a hard line against China. This week marks the 31st anniversary of the Tiananmen Square massacre, and Pelosi said China still has no intention of changing its ways and opening its markets in a fair way.

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Executive Decision: JM Smucker

In his first "Executive Decision" segment, Cramer spoke with Mark Smucker, president and CEO of JM Smucker  (SJM) - Get Report, the packaged foods maker with shares that plunged 4.7% after the company reported earnings that included tepid guidance. Shares of Smucker currently yield 3.2%.

Smucker said that consumers have been flocking to his company's brands which have proven to be both trusted and resilient. As more people work from home, they also eat from home and peanut butter and jelly is still an American lunchtime favorite.

When asked about the cautious guidance, Smucker explained that while sales have been incredibly strong in their at-home segment, the loss of restaurants cannot be completely offset. Smucker expected to see a gradual return to normal and a return to the office for most, but not all, people.

Finally, Smucker commented on some of their smaller, emerging brands. He said their Uncrustable brand was grossing $1 million when they purchased it. It is currently a $350 million brand.

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Executive Decision: Shopify

For his second "Executive Decision" segment, Cramer spoke with Harley Finkelstein, COO of Shopify  (SHOP) - Get Report, the e-commerce platform for small business. Shares of Shopify have risen 106% over the past two months.

Finkelstein said Shopify was created to level the playing field for all merchants and make it easy for anyone to set up shop online. The future of commerce includes a diversity of voices, he added.

Finkelstein continued by saying that Shopify first started by allowing merchants to build beautiful online stores. They then offered services to aid with physical commerce and social commerce and now they're moving into merchant solutions. Those services include payment processing, capital, fulfillment and now accounting services. Shopify has helped small businesses secure $1 billion in cash advances and loans.

Shopify recently partnered with Facebook  (FB) - Get Report to create Shops, allowing merchants to sell their goods and connect with customers on both Facebook and Instagram.

Chinese IPO 'Scams'

In his "No-Huddle Offense" segment, Cramer said enough already with bogus Chinese IPOs that are scamming U.S. investors. He called on our government to have a clear policy and clear goals with China and protect us from these deals.

Cramer said these IPO scams have been going on for far too long and the Chinese won't change their ways unless we hold them accountable. A continued trade war might not be the best idea with 20% unemployment, Cramer concluded, but stopping these IPOs is something we can do today.

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:

Bunge  (BG) - Get Report: "I think that's a good one. They're coming around."

NXP Semiconductors  (NXPI) - Get Report: "I like this one short term and long term. They have a lot of auto exposure and autos are coming back."

VMware  (VMW) - Get Report: "That was a really good quarter."

Macy's  (M) - Get Report: "Macy's is down $40 to $8. They can stay in business and go higher."

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At the time of publication, Cramer's Action Alerts PLUS had a position in COST, FB.