Stock Market Today With Jim Cramer: Sell Pfizer

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Stocks skyrocketed Monday after Pfizer announced its coronavirus drug candidate being developed with partner BioNTech prevented more than 90% of infections in a large-scale study.

© TheStreet Stock Market Today With Jim Cramer: Sell Pfizer

TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about McDonald’s, Pfizer and the stock market rally on Monday.

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The Dow Jones Industrial Average jumped 1,372 points, or 4.85%, to 29,695, the S&P 500 soared 3.18% and the Nasdaq rose 0.66%.

McDonald’s: Buy Or Sell?

McDonald’s on Monday said it was developing its own line of plant-based meat products. Its new plant-based menu would include faux chicken and meat for breakfast sandwiches. The menu items will be sold under the Chicago company’s McPlant banner.

Cramer said McDonald’s launching McPlant was really great. “I’m really after that. I don’t know if it’s Beyond Meat but they’re going ahead with that. McDonald’s had a good quarter but it’s a stock that’s really hard to get a hold of because you’ve got more people going for casual dining now. But Americans are addicted to fast food and they would eat it all the time if it didn’t make them fat.”

Pfizer: Buy Or Sell?

Pfizer shares surged higher Monday after the drugmaker said its developing coronavirus vaccine was 90% effective in late-stage trials and plans to seek Emergency Use Authorization from U.S. health officials later this month.

Cramer said Pfizer isn’t going to make a lot of money with the vaccine. “If I were in Pfizer I would sell half right now and then wait till somebody upgrades it tomorrow and then sell the other half. Pfizer should not be up like this. The only drug stocks that should be up like this would be AbbVie which helps you get botox but women and some men haven’t wanted to do that since the pandemic.”

Monday Market Rally

U.S. stocks jumped to fresh records Monday after progress on a Covid-19 vaccine and Democrat Joe Biden’s election win. Markets rallied after a vaccine developed by Pfizer and partner BioNTech proved better than expected at protecting people from Covid-19

The Dow Jones Industrial Average jumped 1,372 points, or 4.85%, to 29,695, the S&P 500 soared 3.18% and the Nasdaq rose 0.66%.

Cramer said the market rally was justified. “We have lived under the tyranny of this thing (coronavirus). Markets seek out 6 months and remember the last 6 months until today were a recipe for disaster because America had to pay some real money before the Pfizers. It was a breakdown because the virus is spiraling out of control and there is a sizeable part of the country that does not think that matters. The southern part of the country thinks a survival rate of 96% is possible. No doctor would recommend you have an operation unless it was life-saving with a 4% chance of dying. So 4% is very big, and people who are saying otherwise don’t understand how medicine works.”

AbbVie is a key holding in Jim Cramer’s Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.

This article was originally published by TheStreet.

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