Analysis: PYPL UPS LIN

In today's Daily Rundown, Jim Cramer discusses the markets, PayPal (PYPL) , United Parcel Service (UPS) , Linde (LIN) , and more!

JEFF MARKS: Good Tuesday, everyone. Welcome to "The Daily Rundown." I'm Jeff Marks standing on the floor of the New York Stock Exchange with Jim Cramer. Jim, nasty selloff yesterday. We saw a nice bounce. But you said don't trust this bounce. Don't buy right away. So let's just get your latest thoughts on the markets right here.

JIM CRAMER: Yeah. As it comes down, you want to cover. And why do I want you to cover? Well, because we were saying short for those who remember the club and who do short. And now you got the win. And it's coming down. And so you want to cover that. But it doesn't mean want to go long.

Now, we did make a great buy at PayPal yesterday. I'm seeing some of our stocks lift, like an Estee Lauder. But the U.S.-China plays, whether it be Wynn, Union Pacific, Nucor is regarded as a U.S.-China play--

JEFF MARKS: Dupont has some exposure as well.

JIM CRAMER: They're bad. And I think that what people have to recognize is that when you run a diversified portfolio, some of the stuff is not going to work. And stuff that had China exposure is not working, but it will. I have total confidence in Union Pacific, confidence in Wynn. I know that seems-- some people think it's misplaced. I don't think so.

Nucor, what can I say? It's a volatile trader.

JEFF MARKS: So you're thinking this is kind of this too shall pass, but it just might take a couple of days? Oscillator was at negative 4.96 yesterday. 

JIM CRAMER: That's what makes you feel a little more confident when you get to that level. You've got to cover your short. And when you get to minus 5, this is where we started buying. We started buying yesterday midday.

Is it too late to sell? Yeah, it's too late to sell. I think so.

JEFF MARKS: All right, Jim, you mentioned the PayPal buy yesterday. We did get some interesting news this morning. They announced the refreshed PayPal app, a ton of new features, functionalities, savings--

JIM CRAMER: Stock should be up $7, $8. I mean, basically, what they're going in-- and they're going to add stocks, I think. People love -- I don't know about you. But I got like five wallets. I don't want five wallets. I want one wallet. And PayPal is going to be that one wallet.

JEFF MARKS: Yeah, it's some type of an all-in-one functionality. And you mentioned they're going to have stocks. A trading platform has been rumored.

JIM CRAMER: Yeah. I mean, by the way, in terms of trading, DraftKings trying to buy this European company people are very excited about gambling right now because of the NFL. I caution that it's beginning to feel a little like cannabis. Everyone wants in. That means the margin is going to go down. You're going to have to spend a fortune to get customers. Be careful in those stocks.

JEFF MARKS: Not universally legal, right? It's been a rollout for states for gambling. 

JIM CRAMER: Very typical of cannabis. And people lost a lot of money in cannabis. And I don't want people to lose a lot of money in gambling. I do think that DraftKings is a great company.

JEFF MARKS: All right, Jim, I want to turn our attention to something a little bit different. So a couple of companies not in the portfolio but very similar to names that we own announced price hikes over the last 24 hours. So yesterday, you had FedEx announce a bunch of price hikes that go into effect at the beginning of next year.

We own UPS, of course, and Air Products. They announced some price hikes as well, which is going to be good for-- Linde will do the exact same. So just, what do you think about what that means? Are these stocks to potentially turn to once the selloff ends?


JEFF MARKS: UPS and Linde specifically?

JIM CRAMER: Yeah, I think both stocks are-- when you can put through price increases, that means your demand is good. You put the price increases in larger than your costs, obviously. I like UPS here under $190. Linde, I mean, let's talk about this for a second. We mentioned this on the call. United Parcel was at $220. And now it's $190. Should we have flipped it? Yes. Yes, we should have. We can't turn a gain into less of a gain.

Should we have flipped Linde at $330? That's tougher. It's tougher, because UPS is in a cyclical business and Linde is in a secular growth business. And so I have more faith in Linde than I have in UPS.

But FedEx gives them the cover to raise rates. I didn't think that was going to happen. So UPS is a buy.

Now, it just shows you how incredibly miserable this market really is that UPS is not up big. It's not in any index that's going to move it up. I mean, look, you get some of the banks up. America's best are up very big today. Well, that's just the ETFs speaking. But I think that UPS, with that yield and the buyback and now the possibility of a price squeeze, I like it.

JEFF MARKS: Yeah, you mentioned this angry market. PayPal not really moving on this news too, when we know that this new app is going to bring in new customers, new accounts, increase engagement, which is all great for them.

JIM CRAMER: You have to, at a certain point, step out of the morass. And you say, what company -- this is what I talked about last night at the top. What companies are giving you a chance to buy? They are creating reasons to buy?

Well, bingo, PayPal. That was fabulous.

JEFF MARKS: All right, Jim, so we are seeing the market come off its initial rebound of the morning. So my question to you would be, what are you looking for as a potential buy signal. Would it be that green to red?

JIM CRAMER: Let's take Disney because that's the one that keeps torturing me. I mean, yesterday Disney was in the $170s at one point. I want it to be below where we sold it because I believe that the Delta variant is going to get under control. People are going to go back to Disney.

But one of the things that's so hard about selloffs is stocks go just where the risk/reward is not great. And you buy Disney here at $180, well, then why can't it trade at $170-60 on the day? I have no reason.

So I mean, one of the things I've learned to do is say, why now? And just because it's down a little from where it was is not enough. That was the theme of yesterday's Real Money. And I don't like to buy things, come in and just buy because it's like, oh, I like Disney. That's what an amateur does.

Now, there's a lot of people in my mentions column who are such rank amateurs that I'm just going to have to continue to try to school them. There's some who are pathetic and high buying a lot of different names, some of the same people. And I like them. I like them for the following reason.

They waste so much time in their life hitting me, that they're like the Eagle fan throwing the batteries at Santa Claus. I mean, you just don't do that. Look, I did not throw anything at Santa that day. There was no reason to. It was more the Eagles that were the problem, not Santa.

But the mentions people continue to confound me because they spend more time trying to get around the rules and saying horrible things about me than they do studying. So I am now going to be a little more proactive with them and try to give them a little more sense of how the business works because the ones who are going to be left after this washout, they actually might be people that have a brain engaged to the rest of their body and could be worth helping.

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

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