Interest money

Cramer’s Crazy Money Recap 4/13: Delta, JPMorgan, Disney

These are confusing times to invest, Jim Cramer told his Mad Money viewers on Wednesday. That’s why investors should look for stocks that work over the long term, Cramer said.

This is truly a “best of times, worst of times” moment in the stock market. Today, Delta Air Lines (DAL) – Get the report from Delta Air Lines, Inc. told us bookings this month were the best they’ve ever seen as consumers are in desperate need of travel. But we also heard dire warnings from Jamie Dimon, CEO of JPMorgan Chase & Co. (JPM) – Get the JPMorgan Chase & Co. report.that the war in Ukraine could derail the global economy.

How should investors understand these conflicting views? Banks and airlines have always been “sink or swim” industries. So you might get lucky choosing one or the other. Or, you can invest in Procter & Gamble (PG) – Get the Procter & Gamble company reportwhich has just increased its dividend for the 66th consecutive year.

If you’re desperate to own travel stock, maybe skip the random airlines and look to Walt Disney instead. (SAY) – Get The Walt Disney Company Report. Disney has a history of recovering from declines and doing the right thing for its shareholders. If you must have a bank, look to Bank of America (BAC) – Get the Bank of America Corp report, which has a huge deposit base that thrives on higher interest rates. And if you expect Russia’s war in Ukraine to continue, Raytheon Technologies (RTX) – Get the Raytheon Technologies Corporation report is an excellent long-term choice.

Off the charts

In the “Off The Charts” segment, Cramer sat down with his colleague Carolyn Boroden to see what the technicals say about where the markets will go.

Boroden looked at the hardest-hit sector of our economy, technology, using a daily chart of the Nasdaq 100. She noted that a number of Fibonacci sync cycles are expiring this week and next, which would indicate the formation of a trough. However, these indicators are only 60% accurate in this situation.

Looking at the other axis of the chart, price, Boroden noted that the Nasdaq also has a number of support floors just below current levels, which would also be bullish, but not this time.

Technical data from the Nasdaq is downright ugly, Boroden said, and that means another leg lower is the likeliest path for tech stocks.

Growth at a reasonable price

For the third installment of his week-long series, Cramer dove into the semiconductor and semiconductor equipment industry in search of GARP, or growth at a reasonable price. He emerged with seven stocks that he says fit the pattern.

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The first were Western Digital (WDC) – Get the Western Digital Corporation report and Micron technology (MU) – Get the report from Micron Technology, Inc.. Western Digital shares have fallen 31% in the past year, despite earnings growth of 76%. The shares trade for only five times earnings. Micron is a “steal” at just 7.5 times earnings.

Next is advanced micro-devices (AMD) – Get the Advanced Micro Devices, Inc. report and Skyworks Solutions (SWKS) – Get the report from Skyworks Solutions, Inc., two long-time Cramer favorites. AMD is the cheapest since 2015, while Skyworks continues to grow thanks to the 5G wireless transition.

Finally, after 15 months of semiconductor shortages, OEMs KLA Corp (KLAC) – Get the KLA Corporation reportSearch Lam (LRCX) – Get the Lam Research Corporation report and applied materials (AMAT) – Get the Applied Materials, Inc. reportare all spectacular long-term investments that offer growth at very affordable prices.

Covid update

Cramer spoke with Dr. Eric Topol, Founder and Director of the Scripps Translational Science Institute, for an update on Covid and how the latest BA.2 subvariant is likely to affect our economy.

Dr Topol explained that while the BA.2 variant is just beginning to take hold in the northeast, it is proving to be less severe as many people have either had the BA.1 variant or are fully vaccinated with it. one or two reminders. . “We have to stay on our toes,” he said, but the end may soon be in sight.

Asked about wearing masks on planes, Topol said cloth masks offer little protection against the BA.2 and omicron variants, but admitted that wearing an effective N95 or KN94 mask is much less comfortable. That said, he felt that extending the mask on planes for a few more weeks would ultimately prove useful. “We must be patient and not complacent,” he concluded.

lightning tower

In the Lightning Round, Cramer was bullish on Garmin (GRMN) – Get the Garmin Ltd report.AGCO (AGCO) – Get the AGCO Corporation reportDeere & Co. (OF) – Get the Deere & Company reportMcDonald’s (MCD) – Get the McDonald’s Corporation reportChipotle Mexican Grill (GCM) – Get the report from Chipotle Mexican Grill, Inc.and Physicians Real Estate Trust (DOC) – Get the Physician Trust Report.

Cramer was bearish on Rocket Companies (RKT) – Get Rocket Companies Inc Class A ReportMosaic (MOS) – Get Mosaic Company Report and Jack in the box (JACK) – Get the Jack in the Box Inc. report..

Recession Review

In his “No Huddle Offense” segment, Cramer chimed in against the endless chatter about the inverted yield curve forcing our economy into recession. He said that if you believe any skeptics, an inverted yield curve has caused 12 of the last six recessions.

In reality, however, an inverted yield curve is not a reliable indicator of a recession, and to say so is just an overhyped scare tactic. The Federal Reserve does not want to force a recession, it prefers the so-called “soft landing”. And with the yield curve now not inverted, i.e. back to normal, a soft landing is likely what we will see.

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