Stocks declined sharply Monday to kick off a week heavy with earnings from U.S. tech giants as coronavirus infections surge, stimulus negotiations remain at a stalemate and investors prepare for the presidential election more than a week away.
The Dow Jones Industrial Average dropped 776 points, or 2.74%, to 27,558, the S&P 500 tumbled 2.27% and the Nasdaq slumped 2.18%.
TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about his expectations from Apple and Twitter’s stock after it reports earnings and Dunkin’s potential sale to Inspire Brands.
Apple: Buy Or Sell?
Cramer said to buy Apple after it reports earnings. “There is an expectation from the bulls today that Tim Cook is going to give very positive guidance. And if you were in Tim Cook’s shoes it makes no sense to do so.”
Twitter: Buy Or Sell?
Twitter (TWTR) – Get Report reports its earnings later this week. Twitter was attacked by President Trump over the way it handled a recent article from the New York Post. That didn’t help the stock. Shares of the tech giant continue to waver, but overall the trend still looks favorable for the social media stock.
Cramer said Twitter might be a speculative buy because it’s not FAANG. “The last quarter for Twitter was very good but Twitter has been uneven. Its stock has moved significantly and if this trend is for real then Twitter might be worth picking up in what I consider an abysmal morning where people are selling everything.”
Dunkin’s Potential Sale to Inspire Brands
Dunkin is looking at a potential $9 billion sale to Inspire Brands, which is listed as a portfolio holding of Roark Capital. “Dunkin’ Brands confirms that it has held preliminary discussions to be acquired by Inspire Brands. There is no certainty that any agreement will be reached. Neither group will comment further unless and until a transaction is agreed,” company spokeswoman, Karen Raskopf, said in a statement released to TheStreet on Sunday.
Cramer said there is a recognition about the mom and pop coffee shop which for many people has always been a mainstay. “Those of us who love coffee are willing to go to Dunkin like Starbucks but also like the local coffee store. The local coffee store doesn’t have the capital to be able to handle this downturn. The coffee shops are so thinly capitalized that if I were Dunkin which definitely needs more space to expand, it’s getting it.”
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