Analysis: AMD PYPL UPS ABBV AMZN LIN

In today's Daily Rundown, Jim Cramer discusses the markets, COVID dynamics, this morning's trades of AMD  (AMD) , PayPal (PYPL) and United Parcel Service (UPS) (here), earnings from Amazon (AMZN) , Linde (LIN) , AbbVie (ABBV) and more!

JEFF MARKS: This is the Daily Rundown. I'm Jeff Marks standing on the floor of the New York Stock Exchange with Jim Cramer. Jim, first trading day in August. Markets are higher today. What do you think about the trading?

JIM CRAMER: Well, I don't trust the market, which is why we sold a little AMD. Let me tell you why I don't trust it. When I was a hedge fund manager, if I was up a lot, I shut down in August. I did that several times so I could go be on vacation. It worked almost every time.

And I think people have to understand that there are a lot of hedge funds that are up a lot. They don't want to give it back. So what do they do? They cash in. They day trade. That starts this month. So understand that there are day traders.

And then let's talk Robinhood for a second. I was shocked to see the percentage of Robinhood people that are in options. It seems like it's almost 2/3 percent. Well, I mean, if the market goes down big, they're not going to-- they're out, OK? They're out. And they've been a big problem.

Against that, you do have huge amount of money coming every single month, but, again, this is not the month to expect a huge amount of money. September, yes. Use weakness to buy, but I do expect that we will get a lot of pressure on Fed Chairman Powell to make a move if delta peaks.

Now Dr. Gottlieb, whom I regard as the ultimate authority, said that we're very close to peak. We're maybe four weeks away, and that would be it. Then Powell has to change.

JEFF MARKS: Talking taper? Is that--

JIM CRAMER: Yeah, he has to change. So, I mean, he's got to be watching very closely. He has got to be watching the numbers. Right now, they're horrible, OK? So there's-- so far, he's right.

Remember, he said, listen, we got to see how this goes. If they stay horrible, then he's OK with his easy position. If they start to go back down, he's going to have to rethink what he said just last week.

JEFF MARKS: So you mentioned trim what's up, buy that what's been hit earlier, and we did that exactly today. Three trades. We trimmed some AMD after a huge run. Broke above 100 finally, after a lot of patience, and we bought some PayPal and United Parcel. What do you think about the three stocks?

JIM CRAMER: Just let's just go over, United Parcel, we sold higher. This is exactly what I'm saying, and we're nipping at it. We still have, what, another 50 to go if it breaks soon.

JEFF MARKS: So we sold 150 at 220.

JIM CRAMER: Right.

JEFF MARKS: We bought 50 at 200, and now this next 50 this morning.

JIM CRAMER: Right, and then we got another 50 to buy if it does break down. Again, every time Carol Tomé talks, it seems that you hurt the stock, and that's-- she's got to get the hang of it. Maybe--

JEFF MARKS: You think she got the message when she was on Mad Money last Thursday?

JIM CRAMER: Oh my god. I mean, you know, people just say, Jim, how can you be so tough? And I say, because I'm also easy. There was someone who was on this morning I was very tough on, and I-- what I do, I lose the guest. See, losing the guest, to me, is like, I don't care. I don't play it for dinner.

I think the viewer is owed the truth. The viewer is my customer, not the CEO. And if the CEO hurts my customer, well, the customer is always right. So when-- I mean, for instance, Brunswick reported a great quarter, and boss said Brunswick's great. So I've been pushing Brunswick, Brunswick, Brunswick.

But I've got to tell you, had they missed the number, I would just say, listen, what the hell are you doing? You told me that you're sold out. I mean, so, like, I said, what the hell are you doing, Carol, because you've got a lot of good things going, and yet you focus on every single negative. You know that. Every negative.

JEFF MARKS: Well, you say it's always not about making friends. It's about making money.

JIM CRAMER: Yeah, I mean, did I blow up the relationship? I hope not. I think the world of Carol.

For many, many years she was the CFO of Home Depot, but when you see a disappointing quarter and you see how it's disappointing, you say, wait a second. You said at your analyst day that you were going to do X, Y, Z, and then you kind of come to us and you say, well, I kind of did X, Y, Z, but not well. I mean, that's how I viewed that quarter.

JEFF MARKS: But we're buying today. You know, we thought it was an overreaction to the quarter, and share repurchases could be on the horizon.

JIM CRAMER: I think share repurchase and dividend boosts are what make me feel like that I want to buy that other last 50 because I think she goes to the board, and the board's horrified, whereas we've got to-- we have a lot of cash. Let's give it back. I could have told the United Parcel story so much better, and the stock could have been unchanged. And then they do the buyback, and it goes higher. But, no, she told it in a way that made me feel that she was hesitant and uncertain about how UPS is doing.

JEFF MARKS: And let's talk about the PayPal buy next. So stock got hit after earnings, but it looked like there was just a lot-- it was really just the eBay migration and an accelerated timeline of that, and their position for accelerating revenue growth in 2022 now.

JIM CRAMER: PayPal has a history of going down after reports, so why don't people just buy it? Well, because there's always a little something. It's not like PayPal, like people take profits. In this case, there were so many things that they said about eBay and how it's going to hurt them that people just said, you know what? I'm going to get out, and then when eBay is over, I will-- this separation, I will buy it aggressively. No. No, you have to buy it aggressively now because everyone feels like that. I mean, this is one of the things. The perceived wisdom is I got to wait until this quarter's over because he said a lot of bad things, but that's why the stock dropped 20. For heaven's sake, that's when you buy.

JEFF MARKS: And Square buying Afterpay, that's their entrance into buy now, pay later. PayPal obviously has a very fast-growing business there. Any thoughts on between the competition between the two?

JIM CRAMER: I just think that I like them both. I mean, they both are not regulated. I mean, JP Morgan has a buy now, pay later. Ever heard of it? They do. They have one.

JEFF MARKS: Do they?

JIM CRAMER: Yeah, checked off on that today. It's crazy. You get a daily today where the semis are rally, except for AMD. We probably hurt that ourselves. And the financials are rallying, and this continues this incredible rotation.

I just fear that one of these rotations could be a rotation too much. Now I'm not a bear. I'm just saying August has been bad for me to be as long-- we have $350,000 in cash, maybe a little more right now. I don't know.

JEFF MARKS: Give or take.

JIM CRAMER: Yeah.

JEFF MARKS: About 8% of the portfolio.

JIM CRAMER: And I want that. I want that, and I want 10%. I want it to be 10% if we keep flying because I think we need a chance to buy things much lower.

JEFF MARKS: Yeah, and you mentioned AMD. Stock rallied 15% last week.

JIM CRAMER: Well, you know, I love it.

JEFF MARKS: Our patience was finally rewarded after doing all of that buying in the high 70s, low 80s. When they announced that $4 billion buyback, that was a great time to buy that stock. So we're just portfolio disciplined today. It actually, the AMD position, grew into one of our largest because it was up so much.

JIM CRAMER: Well, AMD had an amazing quarter, but there was this moment where people were skeptical. Don't be skeptical. It's obviously right. Go back to Nucor for a second. Here's the number one infrastructure play that was number one anyway in terms of the quarter, but if you listen to that Caterpillar call, you're going to hear that steel is out of control for them.

Well, I got to tell you, it can't go down because there's just such tightness. So the idea that if, listen, Caterpillar-- that Nucor's at five times earnings is fanciful. Nucor is going to be up. They're going to be the one that's going to have the steel that everybody needs, and I think that they're off to the races. I do hope that we got the higher price Advanced Micro. Every semi's just roaring, and the semis trade together.

JEFF MARKS: Yes, they do.

JIM CRAMER: We still have a lot of semis.

JEFF MARKS: Yes, we do. We have some Broadcom, small position, but a lot of Marvell, and AMD, of course, is also a very big position for us, has been for multiple years now. Now--

JIM CRAMER: Still not tempted to buy Intel. I always-- look, I mean, I saw Texas Instruments was down. That was a bad call though. I think that can go back up. Qualcomm was excellent and--

JEFF MARKS: Big sell off on Skyworks when they reported too last week.

JIM CRAMER: That's probably a buy. That's probably a buy.

JEFF MARKS: Yeah.

JIM CRAMER: Actually, I like Skyworks tremendously. We should talk about adding Skyworks. I think that'd be a great stock to add.

JEFF MARKS: Interesting. Now I do want to go back to some of the other earnings reports from late Thursday, Friday morning. Amazon, have to talk about that, big pullback after earnings. What do you think? I think you're pretty back and forth on it right now.

JIM CRAMER: Yeah, I get a little hesitant about buying Amazon because I look at the Walmart and the Costcos all went up, and I think that's a belief that people have gone back to the store. I was surprised at how poorly Amazon did but only within the context of Amazon because it's still really great coming. And we were talking-- we kind of-- I just said, listen, let's just hold on to it after talking to you.

But the reason why I'm not gung ho about Amazon is because I like retail. I like-- look, obviously, it's great that advertise was up, great that Amazon Web Services, but the stock is controlled really by the retail business. And the retail business had a definitive miss.

JEFF MARKS: You think it's also playing into this role of people are spending less on e-com, and they're going out, and they're buying jeans from Levi's, American Eagle,

JIM CRAMER: American Eagle Outfitters. I mean, I think that the mall is getting crowded again. The supermarket Albertsons did quite well. I begin to think, wait a second. Amazon, by their own analysis, like United Parcel, said, look, of course, business is slowing. And we're like, huh? What do you mean of course?

How about it has calmed down post-pandemic? But, no, it's like, yes, we're slowing. And I don't want to hear that. And not that I want to hear anything made up, but I just think that the idea that you have to tell us that things are slow. I mean, we understand it. But Amazon, I think, really made you feel like, listen, maybe you should take profits. And what we're doing is we're betting that they were not nearly as negative as we think off camera.

JEFF MARKS: And let's hit the two from Friday morning, both were beating raised quarters. Linde, that stock had a nice reaction to earnings. AbbVie did slip a little bit. What do you think about the two?

JIM CRAMER: Linde is price increase and secular growth, and it is-- this is one, by the way, that we did trim a little because we bought a lot down, but we still have a ton.

JEFF MARKS: Yeah, good position still.

JIM CRAMER: AbbVie, I have to believe that if this stock stays here, an activist will come in. This is the lowest PE of any pharma, and it's got a huge amount of sales, and a lot of people feel it is not well run.

JEFF MARKS: All right, we'll leave it there for today. I'm Jeff Marks. We'll see you tomorrow.

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