In today's Daily Rundown, Jim discusses Amazon's (AMZN) fourth-quarter earnings (see our analysis here), Honeywell's (HON) fourth-quarter print (see our analysis here), his interview with PayPal's (PYPL) CFO last night on Mad Money (see the site here), CVS Health (CVS) and his reaction to the HHS announcement , today's jobs number, and more!
Katherine Ross: Good morning y'all. I'm Katherine Ross with Action Alerts PLUS. I am here on the floor with NYSE with Jim Cramer. Jim, Amazon earnings.
Jim Cramer: Yeah, look. Okay. Here's what you need to watch about Amazon. The stock traded down to 1628 in the afterhours. Went down about 7 o'clock, and that was one guy, well it's a couple big guys trying to 500, 500. And so they knocked it down far further. And then I think that brokers came down and knocked it down again at the opening. There's really nothing wrong with Amazon except for India. And India's bad, okay, because India is trying to protect the small merchants. Until we figure out what the real law is there, we're going to say they overpaid to be in Amazon. But the one to worry about is Walmart, which I like very much. They bought Flipkart, that was a mistake. Don't forget about Amazon. Be glad that Amazon web services and Amazon Ad is very strong.
Katherine Ross: And what about Honeywell's earnings?
Jim Cramer: Now that was fantastic, but that's mostly aerospace, but also automation. The automation business, and we're doing a fantastic note. The automation business is for Amazon Warehouse. That business is on fire. Aerospace - Boeing, Honeywell, United Technologies, all incredibly strong and don't forget GE. Larry Culp is a doing fantastic job there on Aerospace, which is one of the reasons why GE can rally.
Katherine Ross: But Tusa doesn't think so, but anyway.
Jim Cramer: Meanwhile, Tusa, look, I totally understand. He wants to see the balance sheet fixed, he wants to see the de-leveraging fixed and it's not there yet. Culp told you that.
Katherine Ross: Okay, PayPal's CFO, you just sat down with him.
Jim Cramer: Oh my God, well you know, look, John Rainey's doing a good job. People are freaking out. The stock's down three. The stock was up huge ahead of time. Here's what you need to know about PayPal. They didn't announce any big deals, and because they didn't announce any big deals, people are freaking out. And eBay hurt them in terms of merchandising, and I'm working very hard on eBay, working really hard on eBay to learn what the hell happened. I don't know.
Katherine Ross: Okay, and before we go, Michael is wondering about the weakness in CVS. What are your thoughts?
Jim Cramer: Okay, CVS, look, there's a concerted move to make it so they have to rebate the big gains that they get on the pharmacy benefit managers to the actual customers. I think that would be great for the customers. I don't think it's going to happen, or there'll be some sort of compromise. I think CVS, again, I reiterate, it's one of the cheapest stocks that we have, if not the cheapest. Cisco may be one of the cheapest, too. And by the way, I think Jason Garrett should be, I know you're a Cowboy fan, he's got one year left, that seems absurd. He's good. I'm still pulling for the Rams, but I think the Pats win, and I'm going to be working all this weekend on a series of earnings.
Jim Cramer: But the payment section is still good, payments processing. MasterCard, Visa, PayPal. Aerospace is still good, and even though the employment growth is big, there's not a lot of companies that are necessarily winners on that. It's devoid because there's not a lot of wage growth, and more importantly, the only thing that really matters is that the Fed is right to stay on hold because if you go over the DowDuPont, which is one of the worst quarters we've had and mea culpa, that was my bad, you'll see that housing and autos are very weak. Okay. Look at Illinois Tool Works. So what you have to recognize is that you may think the economy is strong from job growth, it's not strong when it comes to international profits, and we need to care about that.
Jim Cramer: And by the way, retail's not that strong either.
Katherine Ross: All right, Jim, thanks for joining us.
Jim Cramer: Thank you very much. Have a great weekend.
Katherine Ross: Yeah, you too. And congrats on your Super Bowl party, since I know you're going to have one.
Jim Cramer: It's going to be fun.
Katherine Ross: There we go.
Jim Cramer: Summit, New Jersey.
Katherine Ross: All right, guys, thanks for joining us. We'll see you next week.