Analysis: AAPL AMGN FB PYPL MSFT UNH JNJ AMZN

In today's Daily Rundown, Jim discusses Apple's (AAPL) quarterly results (you can read more about it here), Amgen's (AMGN) quarterly results (you can read more about it here), Wednesday's big night of earnings (Facebook (FB) , PayPal (PYPL) , and Microsoft (MSFT) will report), UnitedHealth (UNH) and Johnson & Johnson (JNJ) , the cloud kings, Amazon (AMZN) , and more!

Katherine Ross: Good morning, y'all. I'm Katherine Ross with Action Alerts Plus. I am here on the floor of the NYSE with Jim Cramer. Jim, let's talk about Apple's earnings. Because you just talked about a lot of what to expect.

Jim Cramer: Yeah. I had my exclusive interview with Tim Cook, he was talking about {inaudible} being better. But when you look at ... Now, they did buy a lot of stock back at 200, I was not happy about that. But in January when they saw stabilization and the stock got cratered how much did they buy back then? One of the things that I really want to point out is that there's a lot more optionality to Apple than people realize. If they wanted to they could give you a 3% yield. Suddenly you'd have a lot more people buying. They have more money than they can spend. That's a company that has a lot of ability to do things.

Jim Cramer: Now, the analysts uniformly did get negative because one of the things, and we see this with Nvidia, Katherine. One of the things that an analyst can't do is recommend a stock that's going to have a down year. They can't. It's against pretty much their charter. Because you can't really put a value of price to earnings multiple on a company that's got a down year.

Jim Cramer: So, be aware that Apple will not be able to have a concerted run here. But it is better than expected and if you get a trade deal then the numbers are going to have to come up. Because Apple was down 27% in China. I posited in real money how much of that is the dollar being strong. We had an excellent round up in Apple, so people should check their inbox for Apple.

Jim Cramer: But, overall Apple and Boeing will control today's trading. Boeing the best read through there is Honeywell. Now, Honeywell obviously has other divisions that may not be as strong. But, I continue to believe that Honeywell is a good stock to own. I think that Apple is own don't trade.

Katherine Ross: Let's talk about Amgen which also released earnings last night.

Jim Cramer: I'm really upset with them. It was a very good quarter. Now they could lose a very key court suit on Enbrel. They are not ... you know, we sold some north of 300 [correction* The price was 200 and that Alert can be found https://aap.thestreet.com/story/14841808/1/trimming-amgen-and-downgrading-our-rating.html] . I think we can buy that back. But, it was a really good quarter. They've got this Repatha, which is the anti-cholesterol which are very, very good. The numbers for Aimovig a terrific, but they didn't get the CVS preferred formulation. Lilly did. That was just a tactical error by them.

Jim Cramer: Strategically they're doing fine. Tactically they're abysmal. I question their forecast. I question the way they report. I find that they are a little naïve about the market. It's a depressant. It's going to hurt the price to earnings multiple.

Jim Cramer: The conference call was terrible. The stock is justifiably down because they gave you very little hope. It was very disappointing given how good the fourth quarter was. Now if they lose the court suit obviously they think it's going to go down. They had very good cash flow.

Jim Cramer: But the conference call was like a call you would expect from a consumer products company. Not a drug company. If I want a consumer products company I'll go buy Clorox. I'm aware of how critical those words are I just said, I did not say them idly. But, Coca Cola puts on a better call. Coca Cola seems more novel.

Jim Cramer: So take it for what it's worth in an ActionAlert name. Their own narrative screwed the company up. Now maybe they do lose this big court suit and it goes to 260, I don't know. I don't think so. It would yield too much. But if you had to bring your own stock down you just got your recipe. Very disappointing.

Katherine Ross: Let's look ahead. We've got Facebook, we've got Microsoft, and we've got PayPal-

Jim Cramer: Well, Facebook, is Facebook going to be like Apple? Is Facebook going to be like Apple, which it's not as bad. Facebook is also a one-man wrecking crew. You've got a company where Zuckerberg pens this piece after everyone's kind of put it in the rear view of the mirror. Says, "Listen, we never sold anybody's name." No one ever point blank said they sold your name. But your stuff did end up in places that you didn't want.

Jim Cramer: Now, I was of the opinion that once you posted on social media you better believe it's going to be everywhere. But I question ... Look, I think the Facebook it's an inexpensive stock. But they are going to have to lay out a restructuring where we begin to get the benefits of some of their other products. I mean, some people are calling for restructuring for Apple. I disagree with that. But Facebook has to announce a different board set up, a board of governance. They have to put this issue truly behind them, or else the stock won't go higher.

Katherine Ross: What about PayPal? What are you thinking ahead of earnings-

Jim Cramer: PayPal's different. Dan Schulman. The stock should go down. The stock is up straight line. I don't think Dan is going to stoke that. Dan is a very serious practitioner. I think he's very straight forward. He's going to say, "Listen, things are good." He's not a hype artist. But I feel like that PayPal's had a very good move and we like it a lot. We don't trade it. But we should understand that he does not blow away numbers. That's not what he does.

Jim Cramer: Excuse me, I don't know what this guys doing.

Katherine Ross: So before I ask you about Microsoft I want to say that Fred is wondering whether or not now is the time to buy right ahead of earnings?

Jim Cramer: I think Microsoft you buy before and after. I think Microsoft's got great Cloud business. We heard from Lisa Su, she's partnered with Microsoft, business is good there. Azure is on fire. LinkedIn is doing quite well. We know the PC business is doing far better than expected, or else we wouldn't have a shortage in chips. So I think Microsoft is going to be one of the better ones. They've got a good balance sheet. It's a pretty good situation frankly. I like Microsoft.

Jim Cramer: Look, I think there's stocks that are really doing quite well here. One's that we don't own that I'm looking at, Broadcom obviously doing well, Xilinx. Starbucks, by the way, which I am concerned that Howard could hurt the 300,000 people who work for Starbucks and wear the green apron. The problem is that Howard should distance himself a little more from Starbucks. He doesn't even work there anymore. Kevin Johnson does and he's doing a magnificent job, and that stock is breaking out even without a China deal.

Jim Cramer: I think China's going to be very strong. The gift card business is going to be strong. So these are stocks that I'm ... There's a lot of stocks I'm looking at. I think there's other stocks that are just, that we own in the portfolio that are so good. United Health, I mean this stock is finally breaking out. You know it's great. J&J is starting to break out. One of the things that we saw, I've been talking about the weak dollar versus the strong dollar. When you read J&J's quarter it is just mutilated by the strong dollar and by their very cautious guidance.

Jim Cramer: Now, I want to distinguish this from Amgen. At least they give you hope talking about great drugs. I mean, Amgen ... Wow. I'm still reeling from a way to take down your own stock. Because the companies better than the people. The scientists are better. But there's a lot of things that I'm looking at that make me come back to if we get this Federal Reserve out of the way and he does not shoot himself in the foot we got oil in the right spot. We got this weather that's playing havoc, but that's good for Amazon, right. Because even through the post office isn't working Amazon will get that stuff to you. Big name for us. I like the way that most of the banks are coming back. I think that JP Morgan's headed to 110.

Jim Cramer: So I see a lot of good things in the portfolio. A lot of stocks that I'm really intrigued by. I have Service Now on tonight and I think the Cloud Kings, Salesforce ... Service Now reports tonight. I think the Cloud King's can get reignited by Service Now, which is going to, I think, report a terrific quarter. I mean, a terrific quarter.

Jim Cramer: So, there's a lot to like. I keep coming back to that Christmas Eve, just the incredible annihilation of stocks.

Katherine Ross: Yeah, I agree.

Jim Cramer: How that may have put in a bottom. People don't understand, that may be a lasting bottom. There's so many people looking for retests. The only stock that I'm looking at that I'm really concerned about, thank heavens we don't own it, is AT&T. They yield 7%, that's a big red flag.

Jim Cramer: So, I see a lot of things to like, Katherine. You know we are a little over bought here. I don't trust the Fed. I do think that Facebook could be questionable just because they have ethics that are questionable. I do like Microsoft. I do think that Amazon's going to be ... Amazon's been sitting at this level for a long time. That's highly unusual.

Katherine Ross: They report tomorrow.

Jim Cramer: They report tomorrow. The Boeing quarter really makes me feel very good. Then let's go back full circle to what Tim was saying to me last night. Tim was quite bullish. I spoke to Luca, too, the CFO. When you talk about the capital allocation don't forget the amount of money they've been returning. When you talk about innovation the watch is the most innovative healthcare product. We get that handshake between the healthcare system, and the watch. What's going to happen is it's going to be standard equipment. Because what anything that ... I mean, I had to get healthcare insurance for my daughter who lives in a state where nobody writes insurance, okay. I want to say to all the providers "Listen, my daughter is in great shape. She works out twice a day. She's just sensational, she's driven.

Jim Cramer: But the problem is, is that the healthcare system is broken in this country. Anything that could make it so you can lower your rates like a read through because you got the watch is therefore ... you know there are 600,000 people who die of heart failure. That's a preventable death. That's not cancer. It's a preventable death. What you want to be able to do is diagnose it ahead. The watch can do that when married with the artificial intelligence of the Mayo Clinic. So start thinking that the watch is going to be their next biggest product. It's going to surpass iPad. Then it'll pass Mac. Then it's going to be off to the races.

Katherine Ross: All right, Jim.

Jim Cramer: Tim was very bullish about it. Of course, I was trying to tell Tim, "Listen, I think it's going to be ... " It's always funny. In the interviews I have with Tim because I have been a big fan of Apple. Like I just think it's doing well. I say, "Listen, Tim, we've got to talk up the watch. I want to do that and get a sense, also, for the constraint." The fact is, this is not talking. They would have done a much bigger number if you could get the watch forward.

Katherine Ross: All right, Jim. Thanks so much for joining us.

Jim Cramer: Thank you.

Katherine Ross: We'll see you guys tomorrow.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, AMGN, FB, PYPL, MSFT, UNH, JNJ, AMZN.