The “old guard” of investors takes back control

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Investors are optimistic about the deployment of the Covid vaccine, CNBC’s Jim Cramer said, and it fueled a rally in U.S. stocks on Friday.
The Dow Jones Industrial Average added 453.40 points, or 1.4%, while the S&P 500 rose 1.7% to close at a record high. The highly technological Nasdaq, after dropping 0.8% at one point, ended the day up 1.2%.

“Virtually every sector has seen aggressive buying, except for the once hot, very expensive and hard to understand tech stocks,” said the host of “Mad Money”. “I think it all depends on the ‘grand reopening’, as the United States will have received 240 million vaccines by next week from Moderna, Pfizer and J&J as they ramp up. ”

The increased availability of vaccines means bottled consumer demand is creeping into the economy sooner than expected, Cramer said. He pointed out that L Brands – the owner of Bath & Body Works and Victoria’s Secret – was increasing its earnings outlook for the first quarter on Friday. The company’s shares rose more than 3% during the session.

“The reopening of the trade casts a wide net,” Cramer said. “I think the buying was so powerful that it overshadowed the endless selloff of stocks that were once popular with young buyers,” he added.

It is not known exactly where the new market participants have gone, Cramer said. Nonetheless, he said, it seems “the old guard is taking over.”

“For once the ‘Grand Reopen’ trade felt like a very positive today… with a lot of winners and very few losers,” he added. “If that’s the new normal call me a happy camper, but let’s see if it holds up next week. ”

Cramer offered his game plan for the next income list:

A sign is displayed on a Lululemon Athletica Inc. store in Pasadena, California.
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Mardi: McCormick & Company, PVH, Lululemon, Chewy et BlackBerry

McCormick & Compagnie

  • Results for the first quarter of fiscal 2021 before the bell; 8:00 a.m.ET conference call
  • Projected EPS: 59 cents, according to FactSet

“We are going to learn how successful this business is thanks to the ‘grand reopening’. Here’s the problem: McCormick has a huge foodservice business that they provide restaurants to, and it’s been a real dog, ”Cramer said. “But the stock has had a fabulous run over the past year because its consumer activity has thrived in the home economy. Now I think people will assume the stock has run its course now that we are vaccinating over 2.5 million people a day. ”

PVH

  • Fourth quarter 2020 results after the bell; conference call at 9 a.m. ET Wednesday
  • Projected loss per share: 32 cents, according to FactSet

Lululemon

  • Results for the fourth quarter of fiscal 2020 after the bell; conference call at 4:30 p.m. ET Tuesday
  • Projected EPS: $ 2.49, according to FactSet

“After the close, we hear about a clothing company seen as a victim of the pandemic, PVH, and widely regarded as the winner of Covid, Lululemon,” Cramer said. “I think the market has decided that now is the time for PVH to shine – it’s been booming since the vaccine rollout began in earnest. Lulu, on the other hand… it was avoided because everyone thinks their stuff is the kind of casual clothes you wear when you stay home after work and no one is looking at you. Let’s see what they have to say. ”

Soft

  • Fourth quarter 2020 results after the bell; conference call at 5 p.m. ET Tuesday
  • Projected loss per share: 10 cents, according to FactSet

Ripe

  • Fourth quarter 2020 results after the bell; conference call at 5:30 p.m. ET
  • Projected EPS: 3 cents, according to FactSet

Chewy and BlackBerry are favorite stocks for investors who congregate in online forums like Reddit’s WallStreetBets, Cramer said.

“The WallStreetBets team loves Chewy because it was co-founded by Ryan Cohen. He’s the man with a plan to run GameStop from his perch on the board, ”Cramer said. “As for Blackberry, it’s one of the meme stocks that caught fire in January thanks to a short push from Reddit. I don’t see the call. Maybe the quarter can change its mind. Don’t hold your breath. ”

Mercredi: Walgreens Boots Alliance, Micron et Dave & Buster’s

Alliance of Walgreens boots

  • Results for the second quarter of fiscal 2021 before the bell; 8:30 a.m.ET conference call
  • Projected EPS: $ 1.13, according to FactSet

Walgreens new CEO Rosalind Brewer is “one of my absolute favorite leaders,” Cramer said. “I hope she will tell us about some of her plans to increase sales. Brewer is from Starbucks, where she was the COO, and speaking as the owner of Starbucks for my charitable trust, losing her to Walgreens was a real blow.

Micron

  • Results for the second quarter of fiscal 2021 after the bell; conference call at 4:30 p.m. ET
  • Projected EPS: 93 cents, according to FactSet

“I’m also looking forward to hearing from Micron after the close. I believe its two lines of business – and it’s DRAM and flash – are buzzing. I expect the numbers to increase dramatically. The action seems to be anticipating this, ”Cramer told me.

Dave & Buster’s

  • Fourth quarter 2020 results after market close; conference call at 5 p.m. ET
  • Projected loss per share: $ 1.29, according to FactSet

“I suspect his action will respond well no matter what, because it’s such an obvious reopening game. We saw it with Darden, ”Cramer said, referring to the Olive Garden parent. “I thought everyone knew Darden was going to be good. [The stock] went even higher. … I’m waiting for the same story from Dave & Buster. ”

Thursday: CarMax

CarMax

  • Fourth fiscal quarter 2021 before the bell; conference call at 9 a.m. ET
  • Projected EPS: $ 1.26, according to FactSet

“I think this will be the best quarter of the week of all of this. It will be the best because CarMax mainly sells used vehicles, ”said Cramer. “Right now, automakers keep cutting production because they can’t get enough semiconductors, so more and more people are buying used vehicles and that is pushing up the prices. CarMax is in heaven. ”

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