• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Will Buffett Halo Give Markets a Boost?

Here are Cramer's exclusive comments for the week ahead.
By SEBASTIAN SILVA May 03, 2015 | 07:54 PM EDT
Stocks quotes in this article: GILD, CVS, CHTR, TWC, SYY, BRK.A, BRK.B, IBM, WFC, AXP, KO, DENN, EL, DIS, TSLA, WFM, BABA, YHOO, DATA, WDAY

U.S. stock index futures were mixed Sunday evening after the market rallied in Friday's session.

On Friday, Wall Street had a solid start to May, with stocks rebounding on possible deal talks and better-than-expected earnings from the likes of Gilead Sciences (GILD) and CVS Health (CVS).

The S&P 500 added 1.1% and the Nasdaq climbed 1.3%. The Dow Jones Industrial Average gained 1%, or 180 points.

Tonight, the Dow futures edged higher by 3 points, up about 0.02% at 7:04 p.m. ET, with other index futures mixed. S&P 500 E-mini futures were unchanged and Nasdaq 100 E-mini futures were slightly lower by 0.02%.

The euro fell 0.12% against the dollar and the pound was higher by 0.09%.

Over the weekend, more whispers of developing deals were heard, as top executives close to Charter Communications (CHTR) began reaching out to Time Warner Cable's (TWC) management to discuss a possible merger of the cable operators, sources told the Wall Street Journal.

Also in M&A, in effort to save their planned merger food-distribution rivals Sysco (SYY) and US Foods will need to convince a federal judge over the next two weeks that their industry is a lot more diverse than antitrust enforcers claim, the Journal wrote.

Separately, Berkshire Hathaway (BRK.A, BRK.B) held its annual shareholders meeting on Saturday, where chairman and CEO Warren Buffett and Vice chairman Charlie Munger fielded questions about their businesses and the market in general.

Jim Cramer said Buffett's interview with Rhonda Schaffler was a good litmus test on whether you're prepared to invest in the stock market.

Both Buffett and Munger commented that the future superpowers would be China and the U.S., and Buffet offered reflections on certain investments including IBM (IBM) Wells Fargo (WFC) -- the biggest financial  holding in Action Alerts PLUS -- American Express (AXP) and Coca-Cola (KO). Action Alerts PLUS recently sold American Express, given its lackluster performance in the last two years vs. trust holding MasterCard (MA), which delivered a far superior quarter, Cramer said.

And abroad, Greece targets May for an agreement with its creditors on a reforms agenda.

Cramer told his CNBC Mad Money viewers Friday that he's betting on Warren Buffett to lift investors' spirits over the weekend following Berkshire Hathaway's meeting.

"That's been the pattern in previous years as Buffett's upbeat attitude about America creates an annual morning halo," Cramer said.

Then Cramer's game plan includes Denny's (DENN) on Monday, a great restaurant that he thinks may give investors a reason to buy other restaurant names if Denny's comes in as strong as expected.

"Restaurant stocks had been darlings when gasoline was going down and the dollar was going higher, but both trends have reversed and now the group's being hammered," Cramer added. "I want to see if there's a bottom being put in and, if so, we might want to buy more Panera (PNRA) for AAP."

On Tuesday, Cramer will be looking out for Estee Lauder (EL) and Walt Disney (DIS), two stocks he likes but fears have run up too far ahead of earnings.

"Both will work if the dollar gets weaker, though, and 'Avengers: Age of Ultron' hit it big this weekend, taking in $188 million, pretty hefty given the gigantic and compelling sporting events it was up against," Cramer said.   

Next, on Wednesday, Tesla Motors (TSLA) reports, and Cramer's looking for this stock to give back many of its recent gains when it reports what will most likely be another lackluster quarter.

"I like the car, not the stock, but the Elon Musk hype machine never dies," he added. 

Also on Wednesday Whole Foods Market (WFM) reports, a stock Cramer thinks can be bought, perhaps half now and half after it reports.

"I saw Warren Buffett's comments about how he sees no smiles among the shoppers at Whole Foods and I used to eat at Dairy Queen and drink Coca-Cola 30 pounds ago, but it wasn't until I gave up on that stuff and started going to Whole Foods that I dropped to 176 pounds. I may not be smiling, but at least I am alive!" Cramer said.  

Then, on Thursday, the Chinese online e-commerce giant Alibaba (BABA) reports. Cramer thinks Yahoo! (YHOO), which owns a significant stake in Alibaba, is the way to play that name.

"I know many investors don't care for Marissa Mayer, but the stock's being valued at nothing if you back out these assets," he said.

He also felt that good numbers from Tableau Software (DATA) would be a good opportunity to buy other cloud-related stocks like Workday (WDAY).

"DATA's the bellwether of the group these days," Cramer said.

Finally, on Friday, the markets will be watching the all-important nonfarm payroll numbers.

Economists surveyed by The Wall Street Journal estimate total nonfarm payrolls increased 220,000 in April after an especially weak gain of only 126,000 new jobs in March.

"If the number isn't strong, look for the dollar to fall again and more money to go into international companies based here," Cramer said.  

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Investing | U.S. Equity | Economy | Stocks

More from Stocks

The Way of the Fed, Liking and Trading Lululemon: Market Recon

Stephen Guilfoyle
Dec 12, 2019 8:13 AM EST

The Fed doesn't know what will happen, and they most certainly don't know what they will do in response when the worm does indeed turn.

Tariff News Should Hit Today but Don't Count on Clarity

James "Rev Shark" DePorre
Dec 12, 2019 7:41 AM EST

The market response will not be as simple as 'up on good news and down on bad news.'

Design a Good Trade With This Fashion Brand

Paul Price
Dec 12, 2019 7:00 AM EST

Designer Brands fell sharply this week and now it's a bargain for investors.

All the Fed Cares About Is Jumpstarting Inflation

Maleeha Bengali
Dec 12, 2019 6:55 AM EST

Inflation will be a big theme for 2020 and commodities will benefit the most -- especially copper and iron-ore.

Small Caps Snub the Fed

Helene Meisler
Dec 12, 2019 6:00 AM EST

The Russell 2000 went from outperforming to underperforming on Wednesday; also, let's take a look at gold and bonds.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:20 AM EST BOB LANG

    Webinar Time - Talkin' Calendars, Butterflys

    join me later today after the market close as we t...
  • 10:55 AM EST BOB LANG

    Strength in Semis and Banks

    Seeing some really good power in the semis today a...
  • 09:16 AM EST CHRIS VERSACE

    Dual Dividend Gift

    Coming up soon on Real Money Pro.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login