Dow futures gain on President Donald Trump’s new stance on stimulus. Stocks finished sharply higher Wednesday after Trump said he would consider alternative aid measures such as a new round of stimulus checks, support for airlines, and the Paycheck Protection Program.
In the last episode of Mad Money, Jim Cramer said that when the president tweets something that tanks the stock market, it’s a mistake to sell, because President Trump hates lower stock prices and almost always reverses himself.
TheStreet’s Katherine Ross and Cramer are on Street Lightning talking about buying Alphabet stock, alternatives to the stimulus package, and Trump’s tweets.
Alphabet Stock: Buy or Sell?
A House panel proposed to limit the power and influence of the tech giants including Amazon (AMZN) – Get Report, Facebook (FB) – Get Report, Apple (AAPL) – Get Report, and Alphabet Inc. (GOOGL) – Get Report, the parent company of Google. The recommendations from the House antitrust subcommittee could lead to the breakup of tech companies if approved by Congress.
On Tuesday, Google (GOOGL) – Get Report announced that the G Suite brand will be replaced by Google Workspace as the new name for its package of business tools. The rebranding comes in parallel with the Google features such as having a video chat display at the corner of a document-editing window.
Cramer doesn’t find this concerning, saying “I know that the market is punishing Alphabet and I think that’s crazy.” He advises investors to buy the Alphabet stock which would be “fantastic” if the company was broken up.
Alternatives to a Stimulus Package
President Donald Trump said on Wednesday that he may consider alternative stimulus measures, which may include a paycheck protections program. That would be key for employment and consumer spending, as small businesses, not fully reopened, would be better able to retain employees.
On Tuesday he said he would consider alternative support for airlines and the Paycheck Protection Program, after halting stimulus talks until after the presidential election.
Cramer believes that investors are saying there is going to be a stimulus no matter what. He sees stimulus stocks “roaring” and that bank stocks are going up as well given the fact that they are about to report.
Trump Tweets About Democrats
On Wednesday Trump tweeted about Democrats as he urged Americans to vote.
Cramer reacted to the president’s tweets thinking that Trump is being capricious and arbitrary, but he has to be taken seriously because he is the president.
“It sounds like the president is doing some hyper-bullying again,” Cramer said.
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