Stocks soared on Thursday and Treasury yields soared after a report said President-elect Joe Biden could reveal a $ 2 trillion Covid-19 aid package.
TheStreet’s Katherine Ross discussed the latest stock market news. Cramer talked about the recall of 158,000 Tesla vehicles, the rise in unemployment insurance claims and Biden’s yet-to-be-announced stimulus package.
Tesla: buy or sell?
The National Road Traffic Safety Administration has asked electric vehicle manufacturer Tesla (TSLA) – Get report to revoke 158,000 of its battery-powered Model S sedans and Model X SUVs due to failures in the media control unit.
Vehicles are said to “contain a defect related to motor vehicle safety,” NHTSA wrote in a formal letter to Tesla.
Cramer said the recall will not affect investor confidence in Tesla. “Tesla is a technology company and sometimes you need to remember a few things, there is a lot of technology in your cars. It is not going to cause a drop in sales going forward and that is what matters.”
Increase in unemployment claims
Unemployment insurance claims rose to nearly 1 million last week, supporting their highest level since last August, while the coronavirus pandemic continued to encourage companies to lay off employees.
Cramer said that figure indicates how much we need a stimulus. “I think it should be a targeted stimulus. It should go to the 960,000 people and not just to everyone who is going to have a job, and to the younger people who go straight to Robinhood and buy stocks. We are in a situation where it is very important that the right people receive the money and that would mean giving it to people who do not have it. “
Stimulus Package
President-elect Joe Biden may unveil a $ 2 trillion spending plan on Thursday, which includes direct check payments of $ 2,000, in an effort to revive the economy hit by COVID.
Cramer said the stimulus package would be great for markets and not for people who are suffering. “They need to get all the money given to people in paid jobs. If the [government] forgiving student debts would definitely lead to some kind of recovery. There are two economies – the investment stock economy and the real economy. The first is being fueled like never before. “
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