Dow futures rebound as stocks extend gains following a record November rally as investors look to Senate testimony from Fed Chair Jerome Powell.
In the last episode of Mad Money, Jim Cramer said that FAANG stocks have led the market higher and they’re going to continue to lead higher. While some money managers are advocating to rotate into the oils and the cyclical stocks, Cramer said he’s sticking with the winners.
TheStreet’s Katherine Ross and Cramer are talking about buying Apple, vaccine rollout, and Nikola’s new deal with General Motors.
Apple Stock: Buy or Sell?
Apple Inc. (AAPL) – Get Report was upgraded to buy from hold by Loop Capital Markets analyst Ananda Baruah, who sees promising trends for production, shipments and sales of the tech giant’s products.
He has a price target of $131. Apple recently traded at $117, up 0.4%, about in line with the Nasdaq Composite’s 0.21% gain. The Cupertino, Calif., company’s shares have as risen 59% year to date.
Cramer said that Apple is up and that investors should watch the stock in a market bottom.
What to Expect About Vaccine Rollout
Moderna Inc. (MRNA) – Get Report said Monday it will ask the U.S. Food & Drug Administration for emergency approval of its coronavirus vaccine later today, adding that late-stage trial data showed a 100% effectiveness rate against severe forms of the respiratory virus.
Moderna said the FDA has set a meeting date of December 17 to consider its application, one week to the day after a similar date was set to assess the Emergency Use Authorization application filed last week by Pfizer Inc. (PFE) – Get Report and its German partner BioNTech (BNTX) – Get Report.
Cramer is optimistic about the military’s logistics role in the vaccine rollout. He said that it is not clear who will get the vaccine first when once it is rolled out but it is clear that December will be “much more successful than people realize.”
He added that CVS (CVS) – Get Report and some other drug companies will go right to the long-term healthcare facilities and give healthcare workers what they need to be stronger “given the fact that we are overwhelmed by COVID-19.”
What Nikola’s Deal with GM Means for Tesla
Nikola Corp. (NKLA) – Get Report shares plunged lower Monday after it reached a new agreement with General Motors Co. (GM) – Get Report to provide the electric truckmaker with hydrotec fuel cells.
GM said the new memorandum of understanding replaces an earlier deal that had the carmaker taking an equity stake in Nikola and helping develop the group’s Badger truck, which Nikola said has been “paused indefinitely”. GM said the deal would be ‘cost plus’, meaning Nikola would cover expenses and pay a portion of future profits, adding that the truckmaker would also contribute to upfront capital investment.
Cramer said that not every hydrogen plan is a good one. People want to believe that there will be EVs everywhere produced by GM and Ford, but Tesla (TSLA) – Get Report is leading the market, according to Cramer.
He added that it is hard to find any competitor to Tesla because it has “got this market to itself because it is doing well in every continent and it is obviously something that people want to own.”
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