Analysis: CCI AMD ABT WMT AEO WYNN NUE

In today's Daily Rundown, Jim Cramer discusses the markets, Crown Castle (CCI) , Advanced Micro Devices (AMD) , Abbott Laboratories (ABT) , Walmart (WMT) , American Eagle Outfitters (AEO) , Wynn (WYNN) , Nucor (NUE) and more!

JEFF MARKS: Welcome to the Daily Rundown. I'm Jeff Marks, senior portfolio analyst, Action Alerts Plus, standing on the floor of the New York Stock Exchange with Jim Cramer. Jim, markets are lower today. China economic growth a little weaker than expected. Some troubling news out in Afghanistan over the weekend. What are you watching today?

JIM CRAMER: First, with rates going lower, I'm thinking do we trim some Crown Castle 195? It's a REIT. All the REITs are going up. It doesn't matter that it's actually got a very complicated story, so that's something we should talk about.

I'm looking at the Proctors doing well, and PepsiCo's doing well. And the high multiple stocks are doing terribly, including the ones that we own. And I come back and I say to myself, all right, this rotation is vicious. We've sold some stock. We even sold this morning. If you want to buy anything, it's too early.

JEFF MARKS: So you bring up Crown Castle, and I think shares-- I haven't seen them. It's very resilient today in the market, and you mentioned rates are likely an implication. So are you saying maybe you recommend trim some shares today on the belief that the next move in rates could be higher and then, therefore, the price would come down?

JIM CRAMER: I think so. I mean, I don't hear anything from the Federal Reserve that makes me feel that rates are going to lower. I'm looking for things to buy on a big discount and things to sell on a spike. And I think that we've made a lot of money on that Crown Castle. We battled that correctly. That was a good conference call that we had, which we said, please battle it with us.

I'll give you an example. Disney reports a great quarter, and it's down four. To me, that's more attractive than Crown Castle being up well because it is a REIT. That's why it's up. It's not up because its business is doing well.

It trades in an algo-based thing where American Tower goes up too, and so I'm trying to sell ones-- I want to sell ones that are moved up by an algo and buy ones, like Disney, that are sold down by people who are nervous because Disney was just such a great quarter, so that's kind of where I am. I am wary of stocks that are up a lot because it's like, come on. I mean, are you up on rates because these rallies, these rotations, are so vicious that I kind of want to take advantage of them to sell, not buy.

JEFF MARKS: All right, well, let's talk about a stock we did trim this morning, AMD.

JIM CRAMER: There is a good example.

JEFF MARKS: We did it right around the open. And this is a stock that we've been saying has disconnected a little bit from the fundamentals, at least in the short term. Long term, we still like the stock.

JIM CRAMER: Well, look, it got memed, and that meant, frankly, that it went up above where it should go, based on, say, earnings, and they keep coming back to it. It was up when the rest of the group was down. That was a good time to sell. And I continue to look at stocks that are disconnected with how well they are doing.

I was doing it for real money, a piece about the banks. That would mentioned part of it. They're all trading at-- a lot of them-- like, JP Morgan Morgan's trading at the same level as Wells Fargo. JP Morgan's a pretty good company. There's a lot of unreal pricing going on, and so you have to be aware of what a company can do and what it can't do.

JEFF MARKS: And you mentioned on TV this morning you try to extrapolate what's going on in Afghanistan to what could potentially happen in Taiwan, and we know that Taiwan Semi is a major manufacturer there. So is there any risk as well to the AMD story from that?

JIM CRAMER: Nvidia, AMD, Marvell, Broadcom, it could all be impacted. What I don't want to do is fearmonger. I do think that the path I talked about, about Taiwan going back into the Chinese orb, is very realistic given what happened in Hong Kong and what happened to Afghanistan.

I don't see the president talking about, look, we are going to stand by our allies, including Taiwan. That's just not what they do. So I just think trim some. It makes too much sense not to.

JEFF MARKS: All right, now let's talk about a stock we bought Friday. We actually upgraded our rating from a two to a one and added to our position. That's Abbott Labs, and a lot of this has to do with the delta variant and the need for more testing, and they have that BinaxNOW, which is such-- it's such a great rapid test, affordable, accessible, so let's just get your thesis on Abbott.

JIM CRAMER: Yeah, OK, so we very rarely do what we did, and the reason why we do what we did is very simple. The facts changed. They made way too many Binaxes. It killed their quarter.

People didn't think you have to test anymore because we thought everyone was getting vaccinated. It was kind of a moment in time they preannounced thinking that everyone was going to get vaccinated. It was, like, pre the anti-vaxxers. So they're pumping these things out. They don't know what to do with them, and you get in the situation where it's, like, well, we got to preannounce because we can't sell them.

JEFF MARKS: Stock fell to 106, 107.

JIM CRAMER: And then we get delta variant, and we get the unbelievable number of people who don't get vaccinated, and we get back to school. So back to school is going to be one of those moments, I think, where parents are going to want to test their kid before they go to school. So, I mean, we bought all the Binax we could find. I mean, I'll buy any Binax. If anyone has Binax, I'll buy them. And I think that that's-- Abbott could explode here. Abbott could be up huge.

JEFF MARKS: Now you did mention back to school. We do have some retailers reporting this week. Also Walmart, they're going to report tomorrow morning. This has been a very strong stock over the last couple of weeks, and I guess there's always a concern that expectations get elevated when a stock does outperform. But it's also a stock that's lagged this year.

JIM CRAMER: Yeah, well, that's--

JEFF MARKS: And, finally, it's getting going.

JIM CRAMER: I mean, remember, when we first selected it, we bought it because it lagged. And then it just ultra-lagged, and so we ultra-bought. And the strategy-- remember, what we do here, and that implies to Wynn too, which has been a bust so far. I know that. I mean, Walmart was a bust. Lilly was a bust.

What we try to do is what happens in real life, but you just don't see it and why you're a member of the club. We open our hand, and we show that we're down 5 on Walmart. So what do we do? Do we cut and run? No, we really believe in Walmart, so we buy more. And that's what happens.

And then we say, listen, this could be up huge. There could be a couple of days where it just moves. And that's what happened, so that's what we do. Periodically, we get a-- now I'm worried about American Eagle. And why am I worried about American Eagle?

Well, it's very clear American Eagle is a company that Matt Boss trimmed numbers, which worries me, so we have to talk about that. I don't know. I mean, I'm back and forth. I did not want to see that because that kind of hurts the story. At the same time, I think it's such a great company long-term. I don't want to cut and run.

JEFF MARKS: Right. It does have a decent yield, plenty of cash on the balance sheet, so maybe they do institute share repurchases because the business is doing well. It's just maybe that Boss lowered numbers. He tweaked numbers a little bit below street estimates. So I guess with AEO, what to do next is you've got to wait for that level where it really improves your cost basis.

JIM CRAMER: Right. Yeah, we're going to put this one on hold. No need to buy more. We may have to fight it. I don't think it's a Wynn, W-Y-N-N. But may have to fight it. And when we fight it, discipline says, OK, no more buys until it meaningfully lowers your base á la Nucor, á la Lilly, á la Crown Castle. And we're not going to violate our discipline. No more buys at this level.

JEFF MARKS: And a good reference of stock that we have battled and it has since-- it had a great week last week, one of the strongest performers in the market. Nucor rising off after that infrastructure package made its way through the Senate. What do you think about the stock today? I did see it lower a little bit.

JIM CRAMER: It's pretty bad today. I just think that some of that might be an overreaction to Nancy Pelosi trying to try to hold up the infrastructure bill. I would say that what's remarkable today is the strength of retail headquarters, and that's Home Depot. That's Lowe's. That's Walmart.

And the strength of housing as if-- once again, every tick of banks-- every tick of the banks is down. Every tick of the homebuilders is up because the homebuilders are about the mortgage rate and affordability. And the banks make less, and the homeowner makes more. I mean, I just got a mortgage. Why did I get a mortgage?

I didn't need the mortgage, but I got a 3 1/4 mortgage. And I'm looking-- I'm wondering if I look back on a 3 1/4 fixed, 20-year, if that doesn't turn out to be a great investment. So I think that those who have-- and this is a far field from Action Alerts, but if have-- if you can afford to buy a piece of property, I think it's better to buy than any stock.

JEFF MARKS: Wow. That's an interesting point, and a little--

JIM CRAMER: It's better to buy than any stock. And we were looking at places in Asbury Park, and our thinking is this. OK, so you've got a place that's 55 minutes from New York. If you're going to work at home, you want to work at home in a nice place. From April to October, you'd be at the beach, and they're not that expensive versus the Hamptons, where it takes three hours to go.

And I started thinking, well, jeez, I buy one of those, rent it, get some rate of return because I can't get rate of return in the stock market or in the bond market. And I realized rates are so low. It's almost like, wow, that's calling my name.

JEFF MARKS: A little different commentary from the stock world. But we always appreciate your insight into--

JIM CRAMER: Well, I got to.

JEFF MARKS: --the financials.

JIM CRAMER: Obviously, I can't own stocks. I can own-- do my index funds. I do feel that as the index funds don't come down, my cash goes up. And my wife is a real estate broker, and she's been that for 16 years. And she's got a very keen eye, and I have that portfolio.

And in the alcohol portfolio with Mezcal, they're on her side of the ledger. I'm not saying that we don't speak about it. What I am saying is they're not mine. I don't run them, and I run all this stuff. And she said, Jim, we've got a chance to buy some things here with these rates down. Let's go do it, and let's get a mortgage.

I said, why do I need a mortgage? She goes, well, they're giving the money away. I think that that's many people's feels. They give the money away. You got to go buy property.

JEFF MARKS: All right, let's leave the show, for today, 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 CCI, AMD, ABT, WMT, AEO, WYNN and NUE.