Jim Cramer, the host of Mad Money, recently shared his outlook for Wall Street, focusing on earnings reports. On Friday, he highlighted how the S&P 500 surged toward 6,000 in almost a straight line, a remarkable rally driven by overwhelming buying and a lack of selling. Cramer noted the market’s performance, pointing out that the Dow rose by 260 points, the S&P gained 0.38%, and the Nasdaq advanced 0.09%, with all major indices closing at new record highs.
He described Friday as another impressive session, adding that it marked a historic moment. Cramer reiterated his point, stating:
“This is ladies and gentlemen, a historic move we are witnessing, fueled by an election where voters chose a candidate who is pro-growth, pro-higher stock prices, pro-lower interest rates, and pro-lower taxes… Trump is the most explicitly pro-stock market president in history.”
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Cramer went on to say that now that Trump has won, the benefits are clear across many sectors. He cited tech, oil, pharmaceuticals, consumer goods, and financials as prime examples of sectors seeing strong performance. He emphasized that these gains were driven by money managers who feared missing out on the market’s upward trajectory and were unwilling to sell, knowing they might not have enough stocks in their portfolios. Cramer also predicted that we would soon witness a surge in mergers and acquisitions.
“At the same time, we’re about to see a wave of takeovers as the antitrust regulators will stop trying to block every deal under the sun because a new broom is gonna sweep clean.”
Cramer stressed the importance of looking at the market on a sector-by-sector basis. He noted that the tech sector had taken a breather on Friday. In the coming days, he suggested that retailers might surge, followed by financials and then industrials. He described this cycle of sector rotations as part of an “incredibly bullish, virtuous circle” of market gains. While Cramer acknowledged that stocks had performed well under President Biden, he pointed out that Biden didn’t seem to place much importance on the stock market during his tenure.
“For him, it was an abstraction,” Cramer remarked, adding that this stance was changing with the current administration. In conclusion, Cramer made it clear that stocks were about to have a true champion in the White House once again.
“Stocks are about to have a champion in the White House again, even if you might think they aren’t worthy of a presidential supporter. I say get used to it, even though the buying’s started already, because we got a lot more room to run.”
10 Stocks on Jim Cramer’s Radar
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 8 and listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Stocks on Jim Cramer’s Radar
10. Alibaba Group Holding Limited (NYSE:BABA)
Cramer called Alibaba Group Holding Limited (NYSE:BABA) the Amazon of China but did not recommend buying the shares. Here’s what he said:
“Friday morning, Alibaba reports. I’ve been adamant that if you want to invest in China, you need to buy shares of Alibaba because it has Western financials and it’s a legit, monstrous online retailer. We know that the Chinese consumer is hobbled when it comes to luxury goods and there seems to be a sense of listlessness in that populace. That said, Alibaba does a ton of business and makes the numbers pretty routinely. It’s the Amazon of China.
You need to know that I’m not recommending anything in China, not here, not anywhere, because I think the economy is a train wreck there and the government stimulus efforts have proven ineffective, including today’s multi-year, $1.4 trillion local government bailout. Yet another plan that won’t put money in people’s hands. People that are dealing with a deflationary environment, they need to have money, which is so desperately needed if China ever wants to return to growth.”
Alibaba (NYSE:BABA) provides technology infrastructure, marketing services, and e-commerce platforms to help businesses engage with customers across various industries. Chinese authorities have increased stimulus measures since late September. We discussed the factors affecting Chinese stocks, including BABA, in our article, 10 Best Low Volatility Stocks to Invest in Now. Here is an excerpt:
“Two main themes are affecting Chinese stocks such as Alibaba (NYSE:BABA). First, investor wariness stems from the Chinese government’s unpredictable interventions, as seen when Alibaba’s (NYSE:BABA) stock dropped from around $350 to under $100 after regulatory actions three years ago. Second, U.S.-China tensions add pressure, with tariffs and tech restrictions slowing China’s economy, casting doubt on reported growth rates.”
On Friday, China unveiled a major financial initiative, a five-year plan worth 10 trillion yuan (approximately $1.4 trillion), aimed at addressing local government debt challenges. The announcement was made by Minister of Finance Lan Fo’an, who shared that the government would actively utilize available fiscal space, with plans to expand the deficit in the coming year.
The goal of these measures is to assist local governments in reducing what is known as “hidden debt”. As per Lan’s comments, this hidden debt is expected to decrease significantly, from an estimated 14.3 trillion yuan at the close of 2023 to just 2.3 trillion yuan by 2028.
9. Applied Materials, Inc. (NASDAQ:AMAT)
Cramer mentioned that the semiconductor stocks have recently suffered because of the ASML debacle and expressed hope that Applied Materials, Inc.’s (NASDAQ:AMAT) earnings will change the narrative.
“Thursday after the close, we have results from Applied Materials, AMAT… They’re considered to be the dean of the semiconductor capital equipment industry… Now, I think this group’s been falsely accused of weak demand because of… ASML, which did a real horrible job explaining its story. Hopefully, Applied Materials can clear things up when it reports. The semis have been weak of late… maybe Applied Materials can change that dynamic.”
Applied Materials (NASDAQ:AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries, offering solutions to improve performance and productivity in chip fabrication, display technologies, and related applications. In October, it experienced a dip in stock price, which was largely attributed to the disappointing quarterly report from ASML, another key player in the semiconductor equipment market.
This news prompted concerns across the market about a potential slowdown in the semiconductor equipment sector, and as a result, Applied Materials saw its stock decline on the same day. However, it is important to note that this decline was driven by broader market sentiment. On November 12, Stifel lowered the price target on Applied Materials (NASDAQ:AMAT) to $250 from $270 and maintained a Buy rating.
Ahead of the company’s fiscal Q4 report, which is set to be released on November 14, Stifel kept its near-term estimates unchanged, expecting the company’s Q4 results and Q1 guidance to meet or modestly exceed both the firm’s and consensus estimates. However, as the company approaches 2025, there is growing attention on the outlook for its revenue from China. Stifel also adjusted its forecasts for calendar year 2025, lowering estimates that were initially based on a higher expectation for wafer fab equipment (WFE) growth.
