In today's Daily Rundown, Jim discusses what to expect from next week's* FANG earnings, Honeywell (HON) /Boeing (BA) and the aerospace industry, the semiconductors, Canopy Growth Corp. (CGC) , Apple (AAPL) ahead of earnings, the government shutdown's impact on the markets, and more!
*Facebook (FB) will report next Wednesday after the closing bell, and Amazon (AMZN) will report next Thursday after the closing bell. For more information about TheStreet's 2018 Cannabis Teach-In (discussed in video), please see here.
Katherine Ross: Good morning y'all, I'm Katherine Ross with Action Alerts PLUS. I'm here on the floor of the NYSE with Jim Cramer. Jim, we just talked on our Facebook Live video about ... we kind of teased earnings, we didn't really get into them, so now I want to get into them for the members. It's going to be wild. What are you looking at?
Jim Cramer: Well look, we have a prelude in that we got to be careful, because a lot of the semis have run. But next week is FAANG, and you know, we got Facebook. There's a piece by Mark Zuckerberg defending himself today, and it's fine. But Amazon is the one I want to talk about, because there's a piece today by JP Morgan, talking about how Amazon's going to have upside, that's January 31. Amazon may be the key to this market at this point. Apple, Katy Huberty, from Morgan Stanley, saying the bar's really low. So, maybe even the deceleration of services are fine.
Jim Cramer: Apple won't be the market, they already pre-announced, it's going to be Amazon. And if Amazon blows the numbers away, then FAANG is going to be energized. Alphabet, they're a shade down today. There's a lot of issues with FAANG, but next week is going to be FAANG dominated. And the aerospace cycle. But FAANG's in the balance, and I can't tell you which way it will go, but if the JP Morgan piece is right, wow. Wow, wow. That's our biggest position for AA plus.
Katherine Ross: I was just talking to Martin Baccardax on our podcast, Trading Strategies.
Jim Cramer: He does great stuff. He and I go back and forth at 4 am, on what should be stock of the day. Starbucks.
Katherine Ross: But one thing that I brought up to him, I wanted to talk to him about Boeing and how the government shutdown could affect Boeing, and he brought up a really good point, which is that Boeing is kind of protected right now. By the Chinese trade war, and the fact that government shutdown doesn't affect it.
Jim Cramer: One out of every four planes of Boeing goes to China. Let's say China cancels the orders. There are so many companies that need those planes, that it would be absorbed. Now, obviously you don't want your 25% customer to leave, but without a doubt, the aerospace cycle used to be three years, by the way, now it's like 20 years. So, I'm not worried about Boeing, but the best way to play it is Honeywell, because you get Boeing and Airbus. So, if the Chinese cancel Boeing, they're going to go to Airbus. They can't make the planes them self.
Katherine Ross: You just said that semiconductors have run, and I want to get a little bit more centered and I want to talk about Intel's earnings, and how that's affected the semiconductor space.
Jim Cramer: Okay, here's Intel's earnings. This is an AMD chip. Okay. Alright, shark. Okay. Well, Intel is a minnow, it was very disappointing. And that's because, not a surprise, they talked about data center indigestion. They continue to talk about the shortage. This is AMD's time. I finished the Intel conference call and I said, "Go buy AMD." Go buy AMD. Biggest competitor, because until Intel gets a CEO, Bob Swan's being asked to do things that he's not. He's a CFO, he's a very good man, but he's not a CEO. And what the hell are they doing? Pick a damn CEO. That's very disappointing.
Katherine Ross: I was surprised that we didn't have a CEO announcement.
Jim Cramer: It's very disappointing. Pick a damn CEO, jeez.
Katherine Ross: Okay, so this note on Canopy Growth, we just talked about CBD versus THC, and now I want to talk about this Canopy Growth note, specifically.
Jim Cramer: Well, Canopy Growth is the one that we've said is fine. Now I took a lot of heat on Twitter by idiots, and morons, [inaudible00:03:21], frauds, and charlatans, saying that I was wrong about Canopy Growth and it's now well above where I said, I've been right about Canopy Growth the whole time. It's good to be right. And the fools, and the sparkies, and the chiefs, don't understand that this is because it has a $4 billion war chest, from Constellation. So I mean, little Cronos has got Altria, and that's very good too, but there really is so much stupidity, because people don't understand.
Jim Cramer: Now look, a lot of these other specs, because all the liquor companies have to go buy one too. So I'm not against speculating, but the invested one is Canopy. And that's why Bruce Linton was kind enough to go to our Teach-In. He's been sensational. You should go back and read our Teach-In transcript. It's been very good situation, very good.
Katherine Ross: Yeah, I mean if you're interested in cannabis, you should definitely check out what we spoke about at the Teach-In.
Jim Cramer: Yeah, I mean cannabis today, flying. Lot of things are flying. Things are flying because the dire forecasts haven't happened. People feel there might be a trade deal, it's certainly, the Chinese, as I said, in my Real Money piece, have much more to lose if they don't. People think the impasse might end this weekend, because it looks like that there's some give. And people recognize that we just went through a week of earnings and there was only one disappointment, which was Intel, maybe Colgate. That's not bad.
Katherine Ross: Okay, but is it weird that Mueller's investigation still really hasn't hit the markets?
Jim Cramer: No, but you got to go read this indictment of this guy, Stone. Because there's this moment where he's talking about, "Look you just got to Pentangeli this mess." Reference to Godfather Two. Who the hell would ever text this stuff? I mean, this guy's got serious issues, this is a very sub-optimal series of things that he texted. Ill-advised, ill-advised even.
Katherine Ross: Okay. And going into next week-
Jim Cramer: The Chinese stocks are moving, you notice that?
Katherine Ross: They really are.
Jim Cramer: Boeing's going up. By the way, Home Depot's going up, and there's a era of good feelings, go back to President Monroe. Good man, he delivered, Monroe, he beat the numbers. And I find that right now, people look, they're ebullient, and I want to be careful every time anybody said ebullient, but remember oil's up. And oil's the key to this market. And when Apple goes up, on a piece by Katy Huberty, that is so horrendous, wow, I don't know.
Katherine Ross: That's a note coming from you.
Jim Cramer: Yeah, I mean look, I love Apple, I'd want to own it, not trade it, but I don't think you're going to do well on their report.
Katherine Ross: Yeah.
Jim Cramer: They told you it's going to be a bad quarter, for heaven's sake.
Katherine Ross: And the final thing that I-
Jim Cramer: Even 3M's up today.
Katherine Ross: Yeah, I noticed that too. So the final note that I want to -
Jim Cramer: Well, that's because as my friend Stephanie Link go over it with me. When you have the semis rally, they were the ones that brought us down first. And then the industrials went down. So there is some notion that, "Okay, well now they come back up."
Katherine Ross: The final thing that I want to talk to you about is, ahead of next week, this government shutdown are we going to see more down days in the market because of it, even though we've got [inaudible 00:06:17]
Jim Cramer: Well, I thought that the airlines, are the first to really see it. Their numbers are going to be really hurt soon, okay? Because the TSA. I think that bizarrely and terribly, and Wilbur Ross, thanks for nothing, these people are going to max out on their credit cards. Now Capital One reported bad quarter. But, there's not going to be the hole that people think. There's just going to be harder times for really nice hardworking people, and that's really shameful. We should be embarrassed as a nation. Eight hundred thousand hardworking people, who work for the federal government, are punished, because of a wall, and the fight over the wall?
Jim Cramer: I'm not saying which side's right or wrong, but I'm just saying that, "No, it's not going to hurt them." The food banks in the town I'm in is active about this, because people don't have a lot of savings. If you haven't figured this out, we're a country of two classes. There's the rich and the not rich. And if you work for the federal government, you tend not to be rich, try to save, it's very hard. They have good saving plans, Congress has great saving plan, but they'll max on their credit card, and suddenly they'll have debt that they wouldn't have otherwise. And it's really terrible. It's just terrible. It's a disgrace. Everybody knows it's a disgrace, but we're in some weird country, where these politicians in Washington, on both sides, can't agree with anything. So who suffers? Eight hundred thousand hardworking people. It's really shameful.
Katherine Ross: I agree. Okay Jim, we got to wrap up. But it's always a pleasure to talk to you.
Jim Cramer: Absolutely. No football this weekend.
Katherine Ross: No football this weekend.
Jim Cramer: So I'll be at the Longshoreman again, because my wife's working until 11:30 every night. God love her.
Katherine Ross: Alright Jim, I hope you have a great weekend.
Jim Cramer: Alright you too, Katherine. Good to talk to you.
Katherine Ross: We'll catch you guys next week.