Will Warren Buffett Halo Grace Markets With More Gains?

NEW YORK (TheStreet) -- U.S. stock index futures were higher in pre-market trading Monday, extending the market rally from Friday's session.

On Friday, Wall Street had a solid start to May, with stocks rebounding on possible deal talks and better-than-expected earnings from the likes of Gilead Sciences  (GILD) and CVS Health  (CVS).

The S&P 500 added 1.1% and the Nasdaq climbed 1.3%. The Dow Jones Industrial Average gained 1%, or 180 points.

Today, the Dow futures moved higher by 55 points, up about 0.31% at 8:43 a.m. ET, with other index futures also higher. S&P 500 E-mini futures were up 0.29% and Nasdaq 100 E-mini futures were higher by 0.27%.

The euro fell 0.3% against the dollar and the pound was lower by 0.09%.

Over the weekend, more whispers of developing deals were heard, as top executives close to Charter Communications  (CHTR) began reaching out to Time Warner Cable's (TWC) Management to discuss a possible merger of the cable operators, sources told the Wall Street Journal.

Also in M&A, in effort to save their planned merger food-distribution rivals Sysco  (SYY) and US Foods will need to convince a federal judge over the next two weeks that their industry is a lot more diverse than antitrust enforcers claim, the Journal wrote.

Separately, Berkshire Hathaway (BRK.A)  (BRK.B) held its annual shareholders meeting on Saturday, where chairman and CEO Warren Buffett and Vice chairman Charlie Munger fielded questions about their businesses and the market in general.

Jim Cramer said Buffett's interview with Rhonda Schaffler was a good litmus test on whether you're prepared to invest in the stock market.

Both Buffett and Munger commented that the future superpowers would be China and the U.S., and Buffet offered reflections on certain investments including IBM ( IBMWells Fargo  ( WFC) -- the biggest financial holding in Action Alerts PLUS -- American Express  ( AXP) and Coca-Cola  ( KO). Action Alerts PLUS recently sold American Express, given its lackluster performance in the last two years vs. trust holding MasterCard ( MA), which delivered a far superior quarter, Cramer said.

And abroad, Greece targets May for an agreement with its creditors on a reforms agenda.

Cramer told his CNBC Mad Money viewers Friday that he's betting on Warren Buffett to lift investors' spirits over the weekend following Berkshire Hathaway's meeting.

"That's been the pattern in previous years as Buffett's upbeat attitude about America creates an annual morning halo," Cramer said.

Then Cramer's game plan includes Denny's (DENN) on Monday, a great restaurant that he thinks may give investors a reason to buy other restaurant names if Denny's comes in as strong as expected.

"Restaurant stocks had been darlings when gasoline was going down and the dollar was going higher, but both trends have reversed and now the group's being hammered," Cramer added. "I want to see if there's a bottom being put in and, if so, we might want to buy more Panera  (PNRA) for AAP."

On Tuesday, Cramer will be looking out for Estee Lauder  (EL) and Walt Disney (DIS), two stocks he likes but fears have run up too far ahead of earnings.

"Both will work if the dollar gets weaker, though, and 'Avengers: Age of Ultron' hit it big this weekend, taking in $188 million, pretty hefty given the gigantic and compelling sporting events it was up against," Cramer said.

Next, on Wednesday, Tesla Motors  (TSLA) reports, and Cramer's looking for this stock to give back many of its recent gains when it reports what will most likely be another lackluster quarter.

"I like the car, not the stock, but the Elon Musk hype machine never dies," he added.

Also on Wednesday Whole Foods Market  (WFM) reports, a stock Cramer thinks can be bought, perhaps half now and half after it reports.

"I saw Warren Buffett's comments about how he sees no smiles among the shoppers at Whole Foods and I used to eat at Dairy Queen and drink Coca-Cola 30 pounds ago, but it wasn't until I gave up on that stuff and started going to Whole Foods that I dropped to 176 pounds. I may not be smiling, but at least I am alive!" Cramer said.

Then, on Thursday, the Chinese online e-commerce giant Alibaba  (BABA) reports. Cramer thinks Yahoo!  (YHOO), which owns a significant stake in Alibaba, is the way to play that name.

"I know many investors don't care for Marissa Mayer, but the stock's being valued at nothing if you back out these assets," he said.

He also felt that good numbers from Tableau Software  (DATA),would be a good opportunity to buy other cloud-related stocks like Workday (WDAY).

"DATA's the bellwether of the group these days," Cramer said.

Finally, on Friday, the markets will be watching the all-important nonfarm payroll numbers.

Economists surveyed by The Wall Street Journal estimate total nonfarm payrolls increased 220,000 in April after an especially weak gain of only 126,000 new jobs in March.

"If the number isn't strong, look for the dollar to fall again and more money to go into international companies based here," Cramer said.

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