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Jim Cramer (0:00)
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Jim Cramer (1:09)
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cramerica. Other people and friends. I'm just trying to make a little bit of money. My job is not just to entertain, but to educate you. So call me at 1-800-743-CNBC or tweet me at Jim Cramer. We made it through October without a crisis or a nasty decline and I for one am shocked today. Like so many other days this month, after a higher opening, it looked we were going to get clogged. But then the market found its footing. Strangely, the dow finishing up 41 points as be gaining point to six, the NASDAQ jumping point six one percent. Oh, it was a strange one though. We had not one but two terrific upside surprises from last night, Apple and Amazon. But only one resonated. Amazon stock shot up nearly 10% to an all time high, but Apple opened strong and then gave up all its gains. The gigantic tech nation states that reported this week, which by the way include Meta, Microsoft and Alphabet overall quitted themselves quite poorly. Only only Alphabet really did well, with the worst being Meta, down more than 100 points in two days. Even though Met is doing terrifically, Wall street doesn't like that. Mark Zuckerberg wants to spend a fortune to fend off his AI competitors. More on that later. It's interesting, Amazon actually was quite frugal and people like that. For now, you just need to know that even though I'm a big believer in AI as the fourth Industrial Revolution, Wall Street's gotten skeptical of all of this capital spending. I still think these stocks are worth owning and great stocks are the best defense in any tough market as long as you own them as part of a diversified portfolio. Like I say in how to make money in any market, you should own one or two of these and trust them on them. Long term though, do not try to go in and out. It's all your call but we encourage long term investing in Creamerica and that's how you make a real fortune. Stocks. Now look, I understand it is a tempestuous time. Lots of companies that serve the consumer have gotten very, very weak in part because of inflation, part because of the now endless government shutdown, and in part because of people getting worried about AI taking away their jobs. Still, I think you got to have the long term view here. We're in the middle of earning season, just finished the biggest week and we come out relatively unscathed. More important, we made it out of October without some sort of collapse. Historically we dodged a real bullet. So let's see what the first week of November has in store for us now. We don't have to wait until Monday for some important news. We get Berkshire Hathaway's earnings tomorrow morning and apparently there will no longer be any commentary from the greatest investor of all time, Warren Buffett, who's retiring as CEO. The 95 year old Buffett has agreed to turn the company over to a fabulous exec, Greg Abel, who take the Reinstock year end. The stock's been getting clobber, clobber though I presume that's because of the changeover. Now look, understand I think Berkshire is a terrific company and you have to expect more profit taking as Buffett leaves. But what can I say? He is a repressed, replaceable. But the company's a great one. Monday at the close, we hear from a company that may, may be, and this is a little hyperbole, the next Berkshire Hathaway. I'm talking about Palantir, run by the brilliant Alex Karp. I know presumptuous and heretical me, but I am just reporting on the narrative as I keep hearing from so many people. Palantir is obviously nothing like Berkshire, but people worship Karp. They do and they like. They like to think he is the Buffet of what he does. And he does run an amazing consulting and advisory company. When Palantir Stock was at 50, I said it would go to 100. When it got to 100, I said it would go to 150. And when it got to 200 this week I said it's headed to 250. After this run, I do expect some profit taking on the quarter, but I'm not backing away from this one long term. Why? It is just too good to ignore. And its clients whom I've checked in with, multitudinous, they love. Now we also hear from Clorox, quite different from Palantir, but the stock that is down more than 30% for the year. Clorox is at the heart of this market's conundrum. In the old days when we had worries about the economy, everybody bought the consumer packaged good stocks. Now, perhaps because of inflation, people just won't pay up for the name brands. Let's see what CEO Linda Rendell has to say now. Will Pfizer break out from the $25 level? Oh, it's been a dull run for this former growth drug stock as shareholders seem to be satisfied with a 7% yield. Not much price appreciation. I like growth, but that dividend seems safe and is backed up by cash flow. On Tuesday morning we'll find out if Pfizer could be more of a stock and less of a bond equivalent. Shopify turns in its numbers to this is a good one Canadian. Terrific. It's become a very reliable winner. I think it can duplicate. It's an E Commerce champion that has a great way to work with small medium sized businesses. Hey by the way, I feel the same way about Uber doing well. Another company that's fulfilling its grand ambitions after the close. We have two huge winners so far this year. Well one for many, many years. Well actually both of them really AMD, Ed Exxon. Now we've had their CEOs own CEOs report on repeatedly. These are the kinds of long term outperformers that you simply have to consider owning. Lisa Su at AMD is challenging in video at its own game. Axon's upending the entire law enforcement paradigm with its tasers, its body cameras, its drones and its automatic artificial intelligence drive police reports. You know what, I actually own them both now for the screamers though, Caterpillar has become one of the best performers in the entire market and I think that move is justified given how so much of their equipment is used to make and maintain data centers. Company holds an analyst meeting Tuesday. I want to know if this move is multi year in nature. I have to tell you, spoiler alert. I think it is. Oh and please don't forget to vote. It's your civic duty. Now onto something more interesting. McDonald's reports on Wednesday and I think they are the single best judge maybe in the world of the true state of the consumer who is strapped, who is worried alongside by the way, restaurant brands, Burger King which is on the show tonight, we keep hearing about this cash trapped consumer not willing to eat out and wants to stay at home, wants to preserve capital. But only McDonald's and Burger King can really tell us if that's true or if this people decided that tastes have changed. Robin reports after the close in this online brokerage has managed to win over millions of investors. Maybe you it's become the bell cow of this rally and I am betting we get some fantastic numbers now. It's tough to get data without a government with this government shutdown. Right. But you know, as the best I think bank of America does and it holds an analyst meeting on Wednesday, we're going to find out more about the consumer from them than anybody else. I think it'll tell a relatively sanguine story about the state of the economy and the bank and it could be uplifting. It's a very inexpensive stock. Next, what the heck is really going on with this Warner Brothers discovery? Is the company going to sell itself the highest bidder? Are the earnings any good? That's Thursday's business before the open and I want to see if there's going to be an auction. To me, the stocks moved into arbitrage levels, meaning it's up a ton anticipation of a takeover. But I think you could still catch a couple more bucks if they close any sort of deal. Of course, if they don't though like arbitrage, look out below. We get a couple of real good ones lumped in here. We got a firm for buy now, pay later, Sanders for tech storage and materials for rare earth materials. All three have had they've had tremendous stories to tell for a while now, although Sandys has had a huge and now parabolic run. And I, you know, I don't like to recommend the ones that are in parabola mode. Finally, Friday we got a lagging fast food chain, Wendy's and one of the best performers of the year, Constellation Energy. The company generates power, including a lot of clean nuclear energy. I think these two bookends are most appropriate. Winners win so you continue to buy consolation and unfortunately losers keep losing. So you got to avoid Wednesdays, Wendy's especially by the way, when we have the superior restaurant brands coming up later in the show. The bottom line, I can't tell you not to be glum. I can tell you that the year of magical investing is not yet over. It's taking a breather. But we did get through the historically tough months of September and October with no break in the magic. If the passes any guide, November and December tend to be much, much better. Let's go to Jerry in Illinois. Jerry.