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Dow futures turned higher Tuesday after Trump returned to the White House Monday evening despite only arriving at Walter Reed medical center on Friday. Most medical experts don’t see how Trump can safely go back to the White House as Covid-19 stays in our system for 14 days.
In the last episode of Mad Money, Jim Cramer said that the stock market has something for everyone as President Donald Trump was reportedly doing better, while Democratic challenger Joe Biden continues to widen his lead in the polls. That sent many different sectors rallying, even if they typically wouldn’t trade in tandem.
TheStreet’s Katherine Ross and Cramer are on Street Lightning talking about Regeneron stock after the Pharmaceuticals company new deal, the Bristol Meyers deal, and renewed hopes over the stimulus package.
Regeneron Stock: Buy or Sell?
Regeneron Pharmaceuticals Inc. (REGN) – Get Report shares jumped higher Monday amid speculation the drugmaker could soon receive Emergency Use Authority from the Food & Drug Administration after its coronavirus treatment was given to President Donald Trump.
Trump’s doctors said over the weekend that he received an infusion of Regeneron’s dual antibody treatment for COVID-19 after testing positive for the virus on Thursday.
He likes Regeneron stock but tells investors not to buy it now. Cramers says that buying it now would be late and “idiotic.”
Cramer believes that therapeutics are “the way out of this virus” not vaccine, adding that people don’t believe in vaccines anymore because they believe that Trump corrupted the deal with the FDA.
Bristol Meyers Stock: Buy or Sell?
Bristol-Myers Squibb Co (BMY) – Get Report. agreed on Monday to buy drugmaker MyoKardia Inc. (MYOK) – Get Report, which makes the experimental heart treatment Mavacamten, for around $13.1 billion.
Bristol-Myers will pay $225 per share, for the Brisbane, California-based MyoKardia, a 62% premium to its Friday closing price of $139.60 each. Bristol-Myers said the deal will begin adding to its overall bottom line in 2023 and plans to finance the acquisition with a combination of cash and debt.
Cramer said that he needs to dig deeper in the Bristol Meyers deal, but mentioned that people don’t like the deal and think it is dilutive. The causalities of this illness are very few and there is a franchise that could be bigger than that, he added.
Is Trump’s Tweet Enough to Push for Stimulus Deal?
On Monday, President Donald Trump spent the weekend at Walter Reed Medical Center, recovering from Covid-19. While Trump’s medical team was positive about his prognosis, some observers questioned the official details of Trump’s health.
The president said in a tweet that he was “feeling really good” and renewed hopes for stimulus talks between House Democrats and the White House also were giving stocks a boost.
Trump tweeted from the hospital over the weekend about the stimulus package.
Cramer thinks that a stimulus package is only confirmed if it is heard from Majority Leader Mitch McConnell. He also said that those who said that Trump doesn’t favor eight of the states were wrong. “I made that mistake last week and I am correcting myself,” he added.
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