The Washington City Times’s Jim Cramer pulled back the curtain for five under-the-radar reopenings on Monday as the stock market expects a rebound in the US economy and turned his attention away from the most talked about recovery stocks.
The reopening of the thesis was promoted by federal approval of a Johnson & Johnson coronavirus vaccine, the third inoculation distributed in the US.
“This is a less in-your-face, but potentially more powerful reopening [playbook] because they are being ignored, even if they should have a great year if we can just get back to normal in June, ” said the ‘Mad Money’ host. ‘At this point, the in-your-face reopening of stocks – the cruises and the airlines – I mean, we can start exchanging those and get into something less obvious. “
On the shopping list are fintech payments company Square, designer Ralph Lauren, cosmetics company Ulta Beauty, real estate investment fund Federal Realty and auto maker Ford.
The more obvious reopenings were in cruise lines, such as Royal Caribbean, and airlines, such as Delta. Investors will find that stocks in these industries carry risk through potential stock offers, as Royal Caribbean announced Monday, or on balance sheets.
As for his new recommendations, Cramer said he expects them to gain momentum in the coming weeks.
“These aren’t exactly sneaky reopening of stocks,” he said. “They’re more like ‘The Purloined Letter,’ hidden in plain sight, and I bet they’ll seem a lot clearer as they get higher in the coming months.”
The new suggestions come after the market rebounded Monday after a 3% drop in the S&P 500 in the past two weeks. The S&P 500 started the new week rallying 2.38% to finish above 3,900. The 30-stock Dow index rose 603 points to close at 31,535.51, a gain of 1.95%. The tech-heavy Nasdaq Composite, after falling more than 6% in the past two weeks, rose 3% on Monday to 13,588.83.
The U.S. Food and Drug Administration approved Johnson & Johnson’s one-time Covid-19 vaccine for emergency use on Saturday. Unlike the two-pronged approach in the Pfizer and Moderna vaccines, JNJs will have fewer logistical challenges to overcome in distribution.
CEO Alex Gorsky told The Washington City Times Monday morning that the company expects to deliver 100 million doses in the country by early summer and close to 1 billion worldwide this year.
“That makes me think we are much closer to the end of this long national nightmare, so it’s time to reveal the less obvious reopening themes, if only because the more in-your-face play a bit Feeling overplayed, ”Cramer said.
Disclosure: Cramer’s charity owns Ford stock.
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