October’s robust jobs report doesn’t reflect an economy that’s falling into recession, CNBC’s Jim Cramer says before giving a preview into what’s on his trading calendar for next week. The “Mad Money” host is bullish on the housing market and offers suggestions to play the homebuilder sector. Later in the show he takes aim at analysts covering GrubHub and explains why he’s bearish on the food delivery industry.
Cramer’s game plan: Another week of positive earnings can take the market to more record highs
The stock market has more evidence to quell fears that a recession could be looming, CNBC’s said Friday.
The major averages all surged about 1% during the session, the same day the October jobs report showed that companies added 128,000 new payrolls. That topped the 75,000 that economists had estimated.
“Next week is an important week, not as important as this week when it comes to earnings,” the “Mad Money” host said, “but it’s certainly going to take us to where we have to go, which is more record highs if everything works out.”
Build a position in home construction stocks
A contractor carries boards through a house under construction at the Lennar Corp. Tree Tops community development in Lancaster, South Carolina, U.S., on Monday, Jan. 8, 2018.
Travis Dove | Bloomberg | Getty Images
Cramer recommended investors treat any near-term pullback in the homebuilding stocks as a buying opportunity.
Citing a recent research note from Zelman & Associates, he believes there is more upside in the sector, pointing to the stocks of , , and .
“Ivy Zelman and her team at Zelman & Associates knocked it out of the park when they called for a housing rally back in March,” he said, “and now that the homebuilders have pulled back from their highs, I think you’re getting a chance to pounce again.”
What Wall Street analysts got wrong about GrubHub
A GrubHub banner on the exterior of the New York Stock Exchange on Friday, April 4, 2014.
Jin Lee | Bloomberg | Getty Images
GrubHub, after a rough earnings report Tuesday, saw its stock fall more than 40% in one session, and it’s largely stayed down around $33 this week.
“For months, I’ve been warning you away from this one and the whole food delivery business,” the host said, attributing his bleak outlook to intense competition in the space.
Cramer’s lightning round
In Cramer’s lightning round, the “Mad Money” host zips through his thoughts about callers’ favorite stock picks of the day.
: “It’s had a move. It’s up 40% and I don’t like the specialized real estate financial business ’cause I don’t really know what they own.”
: “It’s new, it’s good. I like the company, but I prefer — look, Proofpoint just reported a good quarter last night.”