- CNBC’s Jim Cramer explains why Wall Street fears a potential Elizabeth Warren presidency and where investors should put their money.
- The “Mad Money” host makes recommendations on the stocks of Herman Miller, Steelcase and Peloton after its new public listing.
- Cramer sits down with Taylor Morrison CEO Sheryl Parker and learns that millennial home buying appears to be picking up.
Wall Street is terrified of Elizabeth Warren
Senator Elizabeth Warren, a Democrat from Massachusetts and 2020 presidential candidate, speaks at the Polk County Steak Fry in Des Moines, Iowa, U.S., on Saturday, Sept. 21, 2019.
Daniel Acker | Bloomberg | Getty Images
Wall Street is “terrified” of a potential Elizabeth Warren presidency and it has opened up buying opportunities in the market, CNBC’s said Thursday.
The worried investors are trying to game the 2020 election and the Massachusetts senator’s odds of winning the Democratic Party nomination and the White House as she closes the lead of front-runner Joe Biden and even surpasses the former vice president in some polls, the “Mad Money” host said.
The most recent Quinnipiac poll has Warren practically tied with Biden.
“As long as investors have trouble understanding that President Trump won’t be removed from office by a Republican Senate, and Elizabeth Warren isn’t some Marxist insurgent out to destroy capitalism, we could have more difficult days like this one,” Cramer argued. “Maybe lots of them. Get used to it.”
Herman Miller and Steelcase are winning because of the strong jobs market
A tag hangs from a Steelcase London Ltd. desk chair in the former offices of Duff Capital Advisors LP in Greenwich, Connecticut.
Daniel Acker | Bloomberg | Getty Images
U.S. businesses may be showing some signs of weakness, but that shouldn’t scare you away from buying the stock of two office furniture companies, Cramer said.
“As long as the job market stays strong, companies will keep paying up to make their workspaces more attractive and entice the workers they need,” Cramer said. “That’s why I think Herman Miller and Steelcase, as boring as they are, are both worth buying.”
Practice patience before paying for Peloton
John Foley, co-founder and chief executive officer of Peloton Interactive Inc., stands for a photograph during the company’s initial public offering (IPO) in front of the Nasdaq MarketSite in New York, U.S., on Thursday, Sept. 26, 2019.
Michael Nagle | Bloomberg | Getty Images
Cramer suggested investors refrain from buying shares of newly public until the price is down at least $4 from its first trade.
After the IPO priced at $29, raising $1.16 billion, the exercise equipment maker opened on the Nasdaq Composite at $27 and rose briefly before trending downward. The host thinks it’s worth starting a position between $17 and $23 per share.
His concern is that Peloton has strong growth but lacks earnings in a market where money managers now want to see a profit.
“This is not the kind of market where you want to rush into a newly minted growth stock, like Peloton. If you think this stock is enticing, just be patient … we’re in a treacherous market for fast-growing companies with big losses,” Cramer said. “Until that mindset changes, Peloton will trade like a money-losing exercycle company with no soul.”
Millennials are finally buying homes, according to Taylor Morrison
Sheryl Palmer, CEO, Taylor Morrison Home Corp.
Scott Mlyn | CNBC
The number of new housing starts has surged in recent months, and the trend is being powered in part by an unlikely bunch — millennials, Sheryl Palmer, CEO of homebuilder Taylor Morrison, told CNBC on Thursday.
Consumers are “changing their relationship with homeownership” and it’s evident in the increase of the number of people who are saving, she said in a “Mad Money” interview.
“People are feeling good, and their confidence is absolutely showing in the real estate market, and that’s not even to mention the demographic tailwinds we have with how the millennials are feeling about buying their first or second house, and certainly the boomers,” Palmer said the sitdown with Cramer.
There are positive tailwinds in this not-so-positive market
A construction worker walks past new homes under construction by developer KB Home in Valencia, California.
Jonathan Alcorn | Bloomberg | Getty Images
Cramer’s lightning round
In Cramer’s lightning round, the “Mad Money” host sprints through his thoughts about callers’ favorite stock picks of the day.
Advanced Micro Devices: “Micron reported a number today. Nobody really likes it. That’s going to send AMD down. I think AMD’s doing better than Micron. … These all trade together.”
: “I think the stock is what I would call an ‘up stock.’ That’s really not why I like to recommend things. I am much closer to Take-Two Interactive on any dip. I think what [CEO] Strauss Zelnick is doing is better than what’s going on at Activision.”
Lyft: “No, not yet. I do believe you that, you know the company – it opened in the $80s, it’s all the way down. People have nothing but losses on it, so it might become literally a tax-loss play between here and year-end.”