Analysis: LIN COST BMY LLY

In today's Daily Rundown, Jim discusses the weak action in the broader markets, earnings and conservative guidance from Linde (LIN) , Costco's (COST) blowout April retail sales, and more!

Jim also answers a club member's question about Bristol-Myers (BMY) and Eli Lilly (LLY) .

KATHERINE ROSS: This is The Daily Rundown. It is Thursday, May 6. I'm Katherine Ross. And I am joined by Jim Cramer.

Jim, markets are kind of muted. We're seeing a little bit of volatility, with the Dow trying to push higher right now. But the S&P and NASDAQ are down. So what's the key to this market for our members?

JIM CRAMER: Well, I mean, you sometimes ask me what Jeff, Zev, and I are doing. And I'm cooking up a trade right now. I apologize, we're a little bit later obviously.

So I'm looking at a market that if I've got something that's up that I don't think is doing well, we're trimming right here, OK? Because this process of four steps forward and then five back, which I'm seeing in a lot of, say, the pharma, is worrying. And I don't want to go there.

I want to be able to take advantage of the decline that I see. And I'm now looking at my app here, because my other machine stalled. And I see that the NASDAQ, once again, falling apart. And I don't want to be a part of the NASDAQ falling apart if I can avoid it. It's just too dangerous.

And so, I mean, I'm not talking about selling Google. But I am saying, OK, listen, if it's once again going to be Pepsi that's up and Citi that's up. And Nvidia was up 5, and now it's down 6, I got to be very careful.

I mean, JPMorgan is at $158. I mean, I've been resenting that-- you know, we sold JPMorgan. We sold Goldman Sachs. And last night I was fretting about that, fretting. I always look at woulda, shoulda, coulda. But we own a big position in Wells Fargo, and we wanted to ring the register in Goldman. But they just keep going up, and up, up.

And one of the reasons they keep going up, up, up is there's no chip shortage there. I mean, the bank stocks are all trading on the fact that they're the course of least resistance to buy. And they're remarkable. And I'm not betting against them. I just wished we owned them.

KATHERINE ROSS: Jim, you're always stealing my topics. I can't even get a question to you before you answer it. So I do want to take this opportunity. You didn't mention Linde. So now I'm going to pose this question to you. They did post strong earnings. And sales were up 7% year over year. I mean, what is your approach to this stock post earnings?

JIM CRAMER: OK, so Linde's very interesting, because what's happened is-- and Jeff and Zev are coming back. This is we thought the guide-- this is Zev-- was very, very conservative. And we're going over the second quarter guidance. Midpoint represents 33% increase over 2020. But remember, 2020 is a bad compare.

But 38% over 2019. That's the good compare. And the thing that we all are kind of shocked about is we like Linde for its consistency, secular growth, industrial gases.

The cyclicality turned out to be far more than we thought. And so that's going to give Linde even further propulsion. If it weren't for Waste Management, and Goldman, and JPMorgan, I would be saying, let's take some off the table. But I am just wary how far stocks can go when their loved here. And Linde is loved.

KATHERINE ROSS: It is loved. But I mean, looking at it right now, it's only up nearly 1%, Jim. So is that in a buying opportunity, or is it--

JIM CRAMER: Well, the market sucks.

KATHERINE ROSS: Yeah, well, that's why I'm wondering if it's a buying opportunity here?

JIM CRAMER: The market sucks. Yeah, the market sucks. I mean, you know, you get a winner. It goes down. Doesn't mean it's a winner.

But you know, analysts sometimes downgrade cause the stock acts badly. But it's good. I mean, I can't tell people, listen, it's good. Buy it up 1%. They just put a good quarter.

I want to say it's good. The market's ugly. You might get a chance to buy up. Good.

KATHERINE ROSS: Jim, another stock that you've liked for a while is Costco. And they did report April retail sales last night with US core comps increasing 24.9% year over year. This momentum, I'm just-- I got to be honest, Jim. I'm a little worried if they can keep up this momentum. So I'm curious what you think.

JIM CRAMER: Why? Why?

KATHERINE ROSS: Well, because once we start returning to normal are people going to be buying as much from Costco in order to eat at home, or as we've just been talking about--

JIM CRAMER: Costco is a learning experience. I mean, most people in the country are not wealthy. And Costco is cheaper than Amazon. So they go to Costco. Costco is the cheapest.

And it's demonstrated by the fact that they could open one anywhere and it's always packed. They're going to be opening them in China.

The samples are up. The samples were, in many cases, the reason why people went, because the samples, of which I used to do, the samples are delicious.

But I didn't go there just to get samples. What I did was, I would go there and get samples. And whatever I liked, I'd buy.

And that's how I discovered their fantastic lox dip, which is amazing. It's how I discovered some of their cakes. And it's how I discovered roast. Their roasts are very good.

And they'll have a piece, say, of something. And I'll say, wow, that's pretty good. And that's just been shelved, but not anymore.

And also, hearing aids. They're the cheapest place to buy hearing aids. So that's a great millennial play. And they are a great place to eat, very cheap. And that's coming back. So you've got some really interesting compares coming up.

KATHERINE ROSS: All right, and let's end with a member question from Eric G, Jim. He is asking, should I swap my position in BMY and dig deeper into Eli Lilly.

JIM CRAMER: Yes, right now. Right now. I'd mention Bristol-Myers so I couldn't get rid of it on TV. Not a good quarter. Getting tired of it. Eli Lilly's down so much. It's perfect.

KATHERINE ROSS: All right, we're going to end right there. Thank you, as always, for joining us today.

JIM CRAMER: Thank you.

KATHERINE ROSS: And we apologize that this video is going out a little bit later, but we did have some technical difficulties on the front end. We have solved them obviously. And we're happy that you joined us today. I'm Katherine Ross. We'll see you tomorrow.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long LIN, COST, BMY and LLY.