Investors’ ‘old guard’ is back in charge

Investors are showing optimism about the launch of the Covid vaccine, said CNBC’s Jim Cramer, and this spurred a rise in U.S. stocks on Friday.

The Dow Jones Industrial Average amounted to 453.40 points, or 1.4%, while the broad S&P 500 advanced 1.7% to close at a record high. High-tech Nasdaq, after falling 0.8% at one point, ended the session with a 1.2% rise.

“Practically all sectors saw aggressive purchases, except for technology stocks that were once hot, very expensive and difficult to understand,” said the presenter of “Mad Money”. “I think it’s all about the ‘Big Reopening’, as the United States will have received 240 million vaccines from Moderna, Pfizer and J&J by next week, as they go along.”

The increased availability of the vaccine means that pent-up consumer demand is entering the economy earlier than expected, said Cramer. He pointed to L Brands – owner of Bath & Body Works and Victoria’s Secret – raising his profit outlook for the first quarter on Friday. The company’s stock rose more than 3% during the session.

“The reopening of the market is launching a wide network,” said Cramer. “I think the purchase was so powerful that it obscured the endless liquidation of shares that were once appreciated by younger buyers,” he added.

It is not exactly clear where the new market participants went, said Cramer. Still, he said, it looks like “the old guard is back in charge.”

“For the first time, the ‘Great Reopening’ negotiation has been tremendously positive today … with many winners and very few losers,” he added. “If this is the new normal, call me a happy camper, but we’ll see if you can handle it next week.”

Cramer offered his game plan for the next win list:

McCormick & Company

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

“We are going to learn how much this company thrives with the ‘Great Reopening’. Here’s the problem: McCormick has a huge food service business, where he supplies restaurants, and this is a real dog, “said Cramer.” But the stocks have had a fabulous run last year because his consumer business has thrived under the economy that stay home. Now, I think people are going to assume that stocks are exhausted, now that we’re vaccinating more than 2.5 million people a day. “

PVH

• Results for the fourth quarter of 2020 after the bell; conference call at 9am ET Wednesday
• Projected loss per share: 32 cents, according to FactSet

Lululemon

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

“After closing, we heard from a clothing company that is considered a victim of the pandemic, PLHIV, and that is widely seen as a Covid winner, Lululemon,” said Cramer. “I think the market has decided that this is the time for PLWH to shine – it has been very strong since the launch of the vaccine really started. Lulu, on the other hand … was rejected because everyone thinks of his things as the kind of casual clothes you wear when you’re out of work and no one is looking at you. Let’s see what they have to say. “

Rubber

• Results for the fourth quarter of 2020 after the bell; conference call at 5 pm ET Tuesday
• Projected loss per share: 10 cents, according to FactSet

Blackberry

• Results for the fourth quarter of 2020 after the bell; teleconference at 5:30 pm Eastern Time
• Projected EPS: 3 cents, according to FactSet

Both Chewy and BlackBerry are preferred shares by investors who gather in online forums like Reddit’s WallStreetBets, Cramer said.

“The WallStreetBets team likes Chewy because he was co-founded by Ryan Cohen. He is the man with a plan to turn GameStop out of his position on the board of directors,” said Cramer. “As for the Blackberry, it’s one of the meme stocks that caught fire in January thanks to a short squeeze induced by Reddit. I don’t see the appeal. Maybe the quarter could change my mind. Don’t hold your breath.”

Walgreens Boots Alliance

• Fiscal results for the second quarter of 2021 before the bell; conference call at 8:30 am ET
• Projected EPS: $ 1.13, according to FactSet

Walgreens’ new CEO, Rosalind Brewer, is “one of my favorite executives,” said Cramer. “I hope she tells us some of her plans to boost sales. Brewer comes from Starbucks, where she was the COO, and speaking like someone who owns Starbucks for my charity fund, losing it to Walgreens was a real blow. “

Micron

• 2021 fiscal results for the second quarter after the bell; 4:30 p.m. Eastern Time
• Projected EPS: 93 cents, according to FactSet

“I also can’t wait to hear from Micron after the closing. I believe that both lines of business – and that is DRAM and flash – are vibrating. I hope the numbers go up substantially. The stock seems to be anticipating this,” Cramer said.

Dave & Buster’s

• Results for the fourth quarter of 2020 after the market closed; teleconference at 5:00 pm Eastern Time
• Projected loss per share: $ 1.29, according to FactSet

“I suspect that his actions will react well anyway, because it is such an obvious reopening move. We saw this with Darden,” said Cramer, referring to Olive Garden’s parent company. “I thought everyone knew that Darden would be good. [The stock] it was even louder. … I expect the same story from Dave & Buster’s. “

CarMax

• Fiscal fourth quarter of 2021 before the bell; conference call at 9am ET
• Projected EPS: $ 1.26, according to FactSet

“I think that, of all these, this will be the best quarter of the week. This will be the best because CarMax mainly sells used vehicles,” said Cramer. “At the moment, automakers continue to cut production because they can’t get enough semiconductors, so more and more people are buying used and that is driving up prices. CarMax is in paradise.”