Analysis: NKE AEO FDX UPS ABBV EL AMD

In today's Daily Rundown, Jim Cramer discusses the markets, Nike (NKE) , American Eagle Outfitters (AEO) , FedEx (FDX) , United Parcel Service (UPS) , AbbVie (ABBV) , Estee Lauder (EL) , Advanced Micro Devices (AMD) , and more!

JEFF MARKS: Happy Friday, everyone. I'm Jeff Marks. This is the Action Alerts Plus Daily Rundown. I'm standing on the floor of the New York Stock Exchange with Jim Cramer. Jim, we got a pretty decent day in the markets today. We got some movers. Lots of earnings that we can--

JIM CRAMER: Benign. I mean, that's what I like. I mean, Nike is a good leader, right? We'll talk about FedEx later. The banks, they just opened down. They're starting to move back. Retail looking pretty good. I have to tell you that I think that the Russell rebalancing is something that I don't have a clue of what will happen. But last Friday we had a rebalancing, and it wrecked the market. So be aware that there are people I think who are trying to get out now. And that's why the market's not stronger.

JEFF MARKS: Let's touch on Nike first. You know, we always like to talk about our mistakes, just as much as our good ones. We let the winners speak for themselves, and the mistakes we focus on hardest. Nike obviously a very strong quarter last night.

JIM CRAMER: Yeah.

JEFF MARKS: Surprisingly, not too much about China and what's going on in the region where there were some issues with boycotts. But at the same time, we did initiate American Eagle Outfitters, which has been a very strong stock for us. So what do you think about the Nike quarter in case of where some subscribers that didn't sell?

JIM CRAMER: All right, so first of all, American Eagle is doing just as well as Nike. So you got to understand, we think American Eagle has got many, many years ahead. Nike's trying to say they have a 2025 plan. And that's very good. No analysts asked the obvious question about-- say you back Kaepernick. How can you handle the human rights abuses in China? The company just said over and over again that the Chinese love them. And I guess that extends to the government. So when we sold we were maybe, you could say it, overly concerned about that. But we should have recognized that no analyst worth his salt is going to confront like that.

JEFF MARKS: Now, I think this brings up a really good topic about portfolio management. Because especially in a market that has been making new highs like this, at the same time still it's better to protect against losses, instead of going for the potential gain.

JIM CRAMER: Yes.

JEFF MARKS: And we just saw a better opportunity with American Eagle, which is up 12 and 1/2% since our alert was published.

JIM CRAMER: Look, I think a lot of what we do is risk, reward. Now, the risk in Disney was substantial. That's why I felt we should sell it. The risk in Nike is substantial. So I'm happy we sold it. Now, when I see Nike go up, obviously there's some displeasure. But I still think that China's there. But what happened in that conference call was it was clear that direct to consumer is doing incredibly well, and that's America. That's Tmall. And I think what people have to recognize is that that's powering the gains. And that's why it was so exciting.

JEFF MARKS: And American Eagle doesn't really sell. They don't sell into China. So you don't have that fear to worry about it, cause it is an overhang. It is a lingering issue.

JIM CRAMER: Yeah, I mean, I think that if you're China, you're sitting there trying to figure out who to boycott. And they're ready to boycott it if the wrong thing is said. But John Donahoe chose not to be interviewed by conventional media, which would have asked that question first.

JEFF MARKS: Yeah, all right, so great quarter from Nike. But we still like AEO more. Now, you mentioned FedEx before. FedEx is down today. And it's bringing down UPS. And we were just talking right before the show about how wrong of a reaction we think it is. What do you think about the FedEx quarter first?

JIM CRAMER: Well, look, FedEx quarter was actually good. They have to spend a lot of money. People don't like that. They have to get the new planes. They talked about at the beginning labor shortages. All these were negative. They chose to have a call that was not a call about how great FedEx is. They had a call about how FedEx is in trouble. Well, I don't want that. Because UPS had an analyst day where it wasn't in trouble.

JEFF MARKS: And what we know from UPS and studying Carol Tome, she was this great CFO at Home Depot. And what drew us into UPS in the first place is her strategy of becoming better, not bigger. She's sweating out assets. FedEx is spending on Capex. UPS is not. That's going to be better for profits going forward for them.

JIM CRAMER: Right, I mean, she's been adamant that they don't want certain mail. Now, they put tariffs on it. And they say last night on FedEx that they do that too. But what matters is that she has winnowed down the stuff that doesn't make money. And she's only in the stuff that makes money. That's why people are going to be surprised at the earnings.

JEFF MARKS: So UPS down today. Buying opportunity?

JIM CRAMER: Yes, yes.

JEFF MARKS: All right, absolutely. I agree to. Let's move on to another stock that is down today. Disappointing news, AbbVie. Now, AbbVie came out today and said that the FDA has still delayed the approval for Rinvoq in I believe it was dermatitis and one other condition. Now, interestingly, it's not because of what's going on with Rinvoq Instead, it's because the FDA is still reviewing Pfizer's Xeljanz, which had some safety issues. Now, we saw a similar issue come up earlier in March. March 17th, AbbVie, it fell pretty sharply when that news hit.

JIM CRAMER: Right, then it went [INAUDIBLE].

JEFF MARKS: But it ended up being a great buying opportunity.

JIM CRAMER: Right, I mean, look, they have a lot of capital. And they've just begun to exploit what's going on with Allergan. The dermatologists are in places that people don't want to go during COVID. Now they're going. It's big.

JEFF MARKS: Now, you bring up Allergan. And when you think Allergan, you've got to think Botox. And when I think Botox, I think about people are going outside again. What a great way if you want to freshen up your appearance, so to speak. And we know Botox is doing very strongly. And that also makes me think about Estee Lauder, a stock that we have been very high on.

JIM CRAMER: All right.

JEFF MARKS: Makeup business. People want to get dressed up when they go out. You buy makeup.

JIM CRAMER: I heard good things in my channel checks yesterday on him, on EL. They're basically saying that the United States is not that big, so don't worry about Macy's. China could be big for them.

JEFF MARKS: Yeah, that's interesting. And now earlier on in the week I was a little bit tougher on the show. I was saying, let's wait to under $300. It's made a great move since then. I think I saw it was maybe $307 the last time I checked.

JIM CRAMER: That's what happens.

JEFF MARKS: But it's still a pretty big position for the portfolio.

JIM CRAMER: Yeah, I mean, look, people, in the same way that, look, we might not have done that, and missed that, you got the Nike, but with American Eagle. I mean, these are all within the confines of buying something that makes it versus something that doesn't.

JEFF MARKS: Now, let's talk about a stock we are buying today. That's going to be AMD. It's had a nice move this week, down a little bit today. We're going to pounce on this opportunity to buy right here. What do you think about AMD?

JIM CRAMER: I'm surprised that it's down. I keep hearing that Xilinx closes next week. If that happens, only the people who are watching this call and a few others are going to get that. I do not believe that people are as dense as they are. This is going to be the acquisition that gives them base station, that gives them proprietary cell phone stuff. It gets them into a market they've never been in. They've got to close it.

JEFF MARKS: Yeah, huge deal for them. We think there's probably some technical pressure going on too because of the share deal, right? People are shorting AMD and buying Xilinx. But if that deal can close, that's going to reverse. You could see a nice spring forward.

JIM CRAMER: Absolutely, you're absolutely right. It's going to be very good.

JEFF MARKS: All right, so check your alerts for that trade. That's the show today. I'm Jeff Marks. Have a great weekend, everyone. We'll see you Monday.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AEO, AMD, UPS, EL and ABBV.