In today's Daily Rundown, Jim Cramer discusses the markets, Bristol-Myers Squibb (BMY) , Honeywell (HON) , FAANG+Microsoft (MSFT) , Costco (COST) , Morgan Stanley (MS) , and more!

JEFF MARKS: Happy Monday everyone. This is the Daily Rundown Exclusive for members of Action Alerts Plus. I'm Jeff Marks standing on the floor of the New York Stock Exchange with Jim Cramer. Jim, let's just get right to it. We were just talking right before we taped here. Maybe it's time to trim some Bristol Myers. It's had a nice move. They report later this week.

JIM CRAMER: Exactly. I mean, my problem with Bristol Myers is, I don't see that anything's happened. They didn't play any role whatsoever with COVID. Well, they'll say that they gave whatever they could use. But they won't say they didn't play a role. But you don't hear about them. We didn't hear anything big about oncological in this quarter. And yet the stocks had to move. Now the group had a move, largely led by Lilly and then Pfizer. And I think people feel like that Bristol's got to have something going.

I think we have to sell some.

JEFF MARKS: Yeah. It's had a nice move. But, trim.

JIM CRAMER: For no reason. Let's just do some trimming. You don't want to just go into this quarter naked.

JEFF MARKS: So pay close to your alerts on that. Because that will be coming out. All right. Let's talk about--

JIM CRAMER: Nice gain for us.

JEFF MARKS: Yeah. Let's go into Honeywell, too. They reported last week. We were talking a little bit about Honeywell in the show right before this. Would you make the quarter?

JIM CRAMER: I think they're very discouraged at Honeywell. I think that they are trying so hard to become more technology, quantum computing you mentioned. They are very cerebral, Darius Adamczyk And I think he's about had it. I mean, I think he's just trying to figure out how people don't see the transformation. We got rid of some very low-margin business. Go into high margin business. So it's vital that people own Honeywell. Vital. And I really think it should be a big position for people.

JEFF MARKS: And if you go through that conference call, I don't think I've ever heard Adamczyk as bullish and excited about the future as he's ever been.

JIM CRAMER: Yeah. Again, I think he's discouraged that people don't listen to him about how excited he is. If you look at the things they're creating scientifically, or with software as a service, I think you'd say, well, wait a second. It's multiple, which everyone keeps saying is too high-- it's nonsense. Multiple's going to prove to be fantastic when aerospace comes back. And aerospace is going to come back. I mean we're going to have herd immunity. It started with UK. I think if you see COVID peak like Dr. Gottlieb says, well, you're going to wish you were at Honeywell.

JEFF MARKS: Yeah. And they said that they plan on hosting an investor day event this November. That type of forum is a great way to really explain that type of future, get a re-rating in the stock.

JIM CRAMER: And that's what's got to happen. I don't think that people-- the people should look at what he's disposed of, what he's bought, and recognize that this is not Dave Cote's Honeywell. And by the way, Dave Cote's Honeywell was pretty damn good.

JEFF MARKS: All right. So we talked about Bristol Myers talked a little bit about Honeywell. Let's just talk about the broader market. We are seeing, looks like a little selling. Its off of a very strong week last week. And it didn't feel like-- no one really thought it was going to be that strong of a week when you came in last Monday morning.

JIM CRAMER: Last Monday morning was a belief that the variants we're going to take over. By the end of the week, people felt the variants are under control. Now I think people feel like, I don't know about the variants. Maybe there's a lot of breakthrough. A lot of talk about breakthrough. I know myself personally, I'm worried about breakthrough. But what I do like is that that rally is actually right now being confirmed by a lack of downside. And I think that people should recognize that when you have the transports almost down just a little, utilities down, which is good because that says that maybe interest rates are going to go higher, which means business is a little better. Oil holding in. These are real good signs. So I think you have to use-- gingerly-- use the decline to buy. Gingerly. Not aggressively.

I am used to now a lack of people understanding what I say. And I've got to be careful. When I say you got to do some buying, I'm saying, let's say you wanted to have 100 Honeywell shares. Buy 25. I'm not saying buy 10,000 Honeywell right here and then buy 10,000 every $0.10 down. There's a lot of subtlety that I have to make clear about, particularly when the people who are upset on-- not that they would ever change their mind in the mentions column-- but they don't understand that when I say buy, I have said 1,000 times, don't buy all at once. I don't feel like I have to continue to say it. But I will.

JEFF MARKS: Yeah. And that scaled approach to buying is always something we're trying to teach. Like for example, whenever we do a new initiation, we usually start off with about a quarter of the position size that we're actually aiming for.

JIM CRAMER: Yeah. I mean, if you take a look at how we bought Bristol Myers, I mean we just bought it gingerly, way down. Because we had a feeling it'd be good. Eli Lilly, we had a feeling it would be good. And how big gains are made. Because-- Crown Castle-- because you recognize the fallibility of yourself. So don't buy all at once.

JEFF MARKS: All right. So this is also the gauntlet week of earnings season. It's the Super Bowl in July, if you will. We also got FAANG reporting Microsoft. Now there was another Microsoft price target raised this morning. You said last week on Mad Money if there was one more before the quarter-- so what do you think about FAANG and those earnings?

JIM CRAMER: Well, I now feel that Microsoft's-- the elevation of the expectations is just mind numbing. So I usually don't like that. Unless they are so clued in. I think Microsoft may be a sell in the news. But that could be good for people. Because the fact is we have good gain in Microsoft. I don't want to take it.

JEFF MARKS: All right. So take profits in Bristol Myers. Anything else you're thinking about for today?

JIM CRAMER: Well, as usual, I wonder about Abbott Labs. Why isn't it doing better? Because people are using the Binax home test, I worry about AbbVie, because why isn't it doing better? Do they have any good news? I mean. We've got these stocks. We've got such big gains that I don't want to give the gains back. And then of course, I'm worried about Wynn. Because I don't know where to do the next buy because Wynn is in the crosshairs of everybody. But it was, and is, the best. And I'm not going to sell the best. I am looking at Home Depot, which is down a lot because of the downgrade of Lowe's. I've been wanting to get into Home Depot forever. Costco is so great, right? That's been a beat.

JEFF MARKS: Yeah, we talked about that last Friday--

JIM CRAMER: I don't want to sell Costco. Oh my God, Costco.

JEFF MARKS: --how they may increase prices sometime in the next 12 months. And they typically outperform ahead of that event.

JIM CRAMER: If they raise the price of membership, which I think-- I mean, I'm a Costco household. And I just don't understand how they can make this stuff so cheap.

JEFF MARKS: Yeah, I saw they're doing a partnership with Uber as well, for potential for some deliveries. Maybe like a trial program. That would be fabulous for that.

JIM CRAMER: They do need to--

JEFF MARKS: Got more of the younger generation involved.

JIM CRAMER: Yes. Yes. Well, they keep-- you know, they're one of those companies like Apple. They don't start. They're not pioneers. They're perfectionists. And I like a perfectionist. And their e-commerce was initially not great. And now it's great. Their fresh food and natural food was not great initially and became great. They want to be the best. And so if they're going that way, it's the best.

JEFF MARKS: All right. Now we do have UPS reporting tomorrow morning before the opening bell. Any quick thoughts on UPS?

JIM CRAMER: I don't like Carol Tomé and it's driving me crazy. She proved them right the last quarter. And then she did her conference call and she talked somewhat, I'd say circumspectly. So they've wrenched the expectations out. It's a volatile stock. If you are a trader, you sell some. But we're not traders.

JEFF MARKS: All right. And we look forward to that earnings report tomorrow.

JIM CRAMER: The other thing I want to point out, If you take a look at how we handle the banks, Wells is great. But we decided to buy Morgan Stanley, because it's trying to become much less of a bank. It's a much less risky situation. If you like Robin Hood, you should love, love, Morgan Stanley.

JEFF MARKS: Yeah. And for more information on Morgan Stanley, go back to our Monthly Members' Call that we had last Wednesday. We broke down our initiation thesis, and everything that you need to know about Morgan Stanley. But, Jim, that's the show for today.

JIM CRAMER: I do want to point out--

JEFF MARKS: Yeah, sure.

JIM CRAMER: You know, we can't forget the GE and Raytheon and Boeing report. I mean, we all focus on the tech. But if you get this moment where we get a peak in-- again, this is really what I'm emphasizing-- if you get a peak in COVID, you're going to want to own Ford. You're going to want to own GE. You're going to want all these. And I've been following Dr. Gottlieb versus Dr. Fauci. I think Dr. Fauci's really been off his game. He's obviously stretched too thin. Dr. Gottlieb's saying, it could be the next 10, 12 days.

JEFF MARKS: That would be welcome news.

JIM CRAMER: So if that's the case, you certainly got to do some buying of some of our cyclical names in the portfolio. And I know it's a menu. And I urge you to look at it.

JEFF MARKS: All right. So keep an eye out on those cyclicals. All right. That's the show for today. I'm Jeff Marks. We'll see you tomorrow.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long BMY, HON, MSFT, COST, MS.