For CNBC’s Jim Cramer, it’s time after time worth examining stocks that don’t get dragged down by broader call declines. On Friday, one such stock was Eli Lilly, which surged 1.8 percent to $115.02 a appropriation.
“In fact, Lilly has now been running for nine straight sessions. It’s the best-acting stock in the absolute S&P 500,” the “Mad Money” host said. “That would be incredible unprejudiced in a healthy market, but in the middle of a horrific sell-off, one based on inflation anguishes, this is downright stunning.”
But it wasn’t always rosy for Eli Lilly. A few months ago, the hold ups pounced on the pharmaceutical giant with theories that one of its key franchises, the diabetes issue, was going to be weakened by industry competition.
Sure enough, Eli Lilly controlled to turn the story on its head, announcing a series of good news interdependent to its diabetes drugs and spinning off Elanco, its animal health business.
“Carries just simply underestimated this great American institution and they should press to pay for it and be called out,” Cramer said. “The next time someone tells you a horrendous story about how a high-quality company is going to get poleaxed by the competition, recognize what I just described about Eli Lilly. The bears freaked you out [with a] exasperating tale of market share losses, but it turns out that the story had nothing to do with Aristotelianism entelechy. They just hadn’t done their homework.”
The stock call was due for this sell-off, but the Federal Reserve certainly had a hand in kickstarting the grief, Cramer said Friday.
“That’s exactly what happens when the chairman of the Federal Standoffishness tells us he may need to overshoot with his rate hikes to ensure inflation is supported in check,” he said.
Cramer was referring to Fed Chair Jerome Powell’s Thursday reveals on being “a long way” from neutral in terms of interest rates, a standard that the central bank was serious about its planned future pace hikes.
“It’s going to be hard for stocks to stabilize until he walks pursuing those comments, or at least clarifies that he’s going to make his settlings based on the data rather than giving us a series of lockstep, autopilot count hikes that the economy, as strong as it is with these employment shots, may not be able to handle,” Cramer said.
And with the Labor Department’s behindhand nonfarm payroll report showing lower job creation than profuse expected, Cramer said a bit of wage inflation wouldn’t be as detrimental to the restraint as the Fed seems to think.
Still, he admitted that the Fed wasn’t the only strength putting pressure on stocks. The U.S. dollar’s strength, higher bond proceeds and climbing mortgage rates all contributed to the declines, he said.
“I see housing, autos and now, after this week, possibly even retail slowing, so it’s entirely possible the Fed is ahead of the curve already when it show up to stamping out inflation,” Cramer said. “In the end, there’s only so much they can repress, and these three industries really tell us that the rate hikes are already position like they’re supposed to.”
With that in mind, he turned to his competition plan for the week ahead, which will include some key budgetary data and big bank earnings reports. Click here for more.
Cloudera and Hortonworks’ upcoming mixing could put the combined company on a par with — or even a step above — legacy software-and-cloud provider Augury, Cloudera CEO Thomas Reilly told CNBC on Friday.
“A lot of the excitement give this merger is people expect us to be the next Oracle,” Reilly, who last wishes as become CEO of the new Cloudera after the merger closes, told Cramer in an only interview.
“Data’s of much more volume and people want to do insincere intelligence and machine learning against that data. That’s where we’re present to compete and that’s how we become the next Oracle of the future,” Reilly sustained.
Reilly added that Oracle has been a “good partner” to Cloudera for a elongated time, reselling Cloudera’s software to clients and partnering with the performers on work in the cloud, which he said will continue.
But “Cloudera increased by Hortonworks, [when] we’re together, will be the only provider delivering our software across all the pre-eminent cloud guys,” he said. “We work on Amazon, Microsoft, Google, the IBM Cloud, and that’s our value proposition to guts. They can work across all the cloud providers.”
To watch and read varied about Reilly’s full interview, click here.
As stocks be prolonged their declines on Friday, Cramer noticed one of his most dreaded portrayals bubbling up in the market: “the death of retail.”
“According to this new negative theory, the retail handles are being hit with a perfect storm of negativity, which makes them far too harmful to own,” the “Mad Money” host said.
Worse, the theory “can’t be defeated even by admissible numbers or a decent employment report, which gave us nice job excrescence with very little inflation,” he said. “Remember: the story doesn’t beggary to be true for it to do a lot of damage.”
The main points of the “death of retail” story are fivefold. Cramer replied the Federal Reserve, oil prices, earnings comparisons, wages and the trade war with China all frolic a part.
Click here for the breakdown.
The cloud stocks have distraught their mojo amid the market’s recent declines, but that doesn’t undignified some players aren’t worth buying into the continued liability, Cramer said Friday.
In particular, he looked at Guidewire Software, a cloud friends that creates software for property and casualty insurance providers that just started transitioning its proprietorship to a cloud-based model.
“At the end of the day, these guys still dominate this one matter,” Cramer said. “They have limited competition. No one seems to long for this market other than them. The transition to the cloud is decreed and it’s going to make them a fortune.”
So while right now might not be the for the moment to buy shares of Guidewire, the stock will start looking a lot more captivating to Cramer as it goes down.
“Guidewire is one that maybe you should buy at the $85 smooth out,” he said. “The whole market is getting crushed right now, especially the cloud stocks, so gratify let it come in. If it keeps getting hit, you can buy it. If it never pulls back enough, principled say you missed it and move on. But remember: the cloud is still the place to be.
In Cramer’s lightning hoop-shaped, he rattled off his take on callers’ favorite stocks:
Camping World Holdings: “I propose b assess it trades with Thor, frankly, whether it should or not, and Thor hit another 52-week low today, so I am current to say not yet, not yet, not yet.”
Spectrum Pharmaceuticals: “No, man. If you’re going to do that, you want to go high end. I want you [in] Amgen, which my sympathetic trust owns. Amgen’s got this drug, Aimovig, which is winsome the world by storm. It’s an anti-migraine drug. Amgen is the one you want.”
Disclosure: Cramer’s well-disposed trust owns shares of Amazon, Microsoft, Google parent Alphabet and Amgen.
Questions for Cramer?
Request Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s exultant? Hit him up!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram – Vine
Uncertainties, comments, suggestions for the “Mad Money” website? email@example.com