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TheStreet 20 July, 2021 - 04:04am 15 views

Markets opened sharply lower Monday after fears of a continued rise in the delta variant continued to dent sentiment. The Dow Jones Industrial Average was down 459.53 points, the S&P 500 was down 49.19 points and the Nasdaq Composite was down 186.54 points. 

Watch the full interview with TheStreet Live in the video below: 

Cramer added that this mentality has leaked into the semiconductor and oil stocks among other sectors for the right and wrong. 

Zoom announced it will acquire call center provider Five9  (FIVN) - Get Report for about $14.7 billion in stock, marking the video streaming service's biggest acquisition to date. 

The all-stock deal implies a price of $200.28 a share - a 12.8% premium to their Friday closing price and a 23x multiple to Five9's projected 2022 sales of $650 million, according to TheStreet's Martin Baccardax. 

Amid concerns Zoom will lose relevance as the return to the office accelerates, the company said the deal will help it expand its addressable market. 

In a statement, Zoom said Five9 will  "allow it to accelerate its long-term growth opportunity by adding the $24 billion contact center market."

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Jim Cramer blames Covid fear, speculation for Monday sell-off

CNBC Television 20 July, 2021 - 06:00am

Market Selloff, Oil, Zoom: Jim Cramer's Stock Market Breakdown - July 19

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Cramer's Mad Money Recap: Speculation, COVID, Meme Stocks

TheStreet 19 July, 2021 - 05:54pm

Cramer had a long list of factors that continue to weigh on stocks, not the least of which was the continued flood of new IPOs and SPACs that require money managers to sell old stocks in order to make room for new ones. There are no less than 19 deals slated for this week alone, and with 638 so far this year, 19 more is the last thing we need.

Another factor sending stocks lower is the stream of "meme-a-day" stocks that are pumping up small-cap names, only to send them sharply lower the following day. Even cryptocurrency is shaky as speculators realize that Bitcoin can fall just as fast as it rises.

Other items on the decline include oil prices, where increased OPEC supply aims to put a cap on future gains. Investors are also shunning stocks with high price-to-sales ratios, preferring those with actual earnings instead.

These declines won't stop until all of the speculators get blown out, Cramer concluded. Unfortunately, there's a lot of speculation that still remains.

Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

In his "Executive Decision" segment, Cramer spoke with Matt Meeker, co-founder and executive chairman of The Original Bark Company BARK, as well as Manish Joneja, the company's CEO.

Meeker said he founded the Bark Company because his own large dog was underserved in New York City, which caters to smaller dogs. That experience made him realize that every dog is unique and deserves to be treated individually. Joneja added that the Bark Company uses the data they know about you and your pet and, with the assistance of artificial intelligence, customizes and adapts their recommendations to your pet's needs.

When asked about their presence in retail stores, Joneja said that subscriptions will always be at the core of their business, but at the retail level, they can also provide value to pet owners who may not have experienced their full offerings, including fun, food, home and health items.

Despite Monday's selloff, shares of The Original Bark Company closed up 4.4%.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

For his second "Executive Decision" segment, Cramer also spoke with Bryan Jordan, president and CEO of First Horizon National  (FHN) - Get Report, the regional bank that saw its shares dip 3.5% on the day amidst the overall market weakness.

Jordan explained that there are two forces working against the banks at the moment. The first is low interest rates, and the second is an absence of loan growth. He said the industry is essentially "moving sideways" at the moment, as strengthening loan growth is being offset by increased liquidity, which is allowing companies to pay off their loans quicker.

Lower interest rates aren't all bad however, as Jordan noted that with the recent downtick in interest rates, home refinance activity has once again picked up throughout the company's territory. COVID-related relocations are also helping to drive new business, as areas like Tennessee have become popular with those looking to leave big cities.

Finally, Jordan talked about the recent merger with Iberia Bank, noting that the company has already seen $20 million in revenue synergies and will continue to see even more over the next six to eight quarters.

Now that the major banks have reported earnings, Cramer circled back to see which ones stood out the most.

Wells Fargo  (WFC) - Get Report remains the underdog in the group, but that means it's graded on a curve. The company delivered a sales and earnings beat and boosted its buyback, which made it Cramer's one to buy.

Morgan Stanley  (MS) - Get Report also reported excellent earnings and is also transforming itself into a solid fee-generating business that should provide stable returns for shareholders.

Citigroup  (C) - Get Report was one of the few banks that seems to be moving in the wrong direction, with earnings that weren't all that impressive and expenses that are on the rise.

Cramer said that JPMorgan Chase  (JPM) - Get Report continues to be a student that once again produced straight As. That makes it a great company, but a lackluster stock.

Finally, there's Bank of America  (BAC) - Get Report, the most interest rate sensitive of all the banks. Cramer said if you believe interest rates are on the rise, this is the bank to own.

In his "No Huddle Offense" segment, Cramer warned investors about "peaks." When something has peaked, that's it, it's over. Things can only get worse from here.

The market is dealing with several peaks right now. The first is China. After the Chinese government crushed shareholders of Didi  (DIDI) - Get Report a day after its U.S. debut, all Chinese stocks became toxic.

There's also a peak in the semiconductors, as some analysts proclaim the chip shortage is over. Cramer said it's not over, there's simply a pause in demand, which is why this is the only group that should be bought on weakness. 

Still other peaks include oil, which Cramer foretold in last week's "Off The Charts" segment, and the peak in leisure and entertainment, which is being brought on by COVID's resurgence.

Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:

Academy Sports and Outdoors  (ASO) : "I still like it. I'm a buyer."

Sherwin-Williams  (SHW) - Get Report: "Raw costs are too high. I don't think you can buy this one until costs start to come down."

SoFi Technologies  (SOFI) - Get Report: "This one has been a nightmare, but I'm a buyer at the $14 level."

General Electric  (GE) - Get Report: "I don't think it's great, I don't think it's bad. It's just OK."

Sysco  (SYY) - Get Report: "This is a reopening stock. I'm going to say no right now."

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

Jim Cramer says the stock market will bottom after speculators find the exit

CNBC 19 July, 2021 - 05:36pm

"Once the speculators are blown out … and the stocks that are already down huge start rallying, then we can find a tradeable bottom," the "Mad Money" host said. "We're close, but the speculators haven't been fully crushed yet."

On Monday the Dow Jones Industrial Average tumbled more than 700 points, turning in its worst day since October as all 30 stocks on the index slid. The S&P 500 and Nasdaq Composite both declined more than 1%.

Cramer suggested investors begin looking for buying opportunities in stocks that have already suffered a 10% to 20% pullback. He also recommended investors add a bank stock to their portfolio after the group took a hit, despite posting strong earnings reports.

"I think you watch as the speculators get blown to kingdom come, while the pandemic stocks come roaring back and the big industrials try to bottom," he said. "The rails, the aerospace plays other than Boeing ... and the infrastructure stocks all make a ton of sense down here well because they're down big" from their highs.

West Texas Intermediate crude futures dropped under $70, a key level, for the first time in more than a month. U.S. oil would finish the day at $66.42 per barrel, a more than 7% decline for its worst day since September.

Without the deal, Cramer projected that oil could have run up to $100 per barrel.

"The collapse of crude is actually good news for the broader market … it means lower costs for everybody," Cramer said. "Plus, at these levels, some of the better oils are too good to ignore [like] Chevron with a 5.6% yield."

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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Jim Cramer: 3 Headwinds Driving Monday's Stock Market Selloff

TheStreet 19 July, 2021 - 11:09am

Jim Cramer broke down what's fueling Monday's market selloff and why he's looking to do some buying in the video above. 

Recap TheStreet Live: Everything Jim Cramer Is Watching 7/19/21

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