Stock Market Today With Jim Cramer: Hold Disney and Facebook

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Jim Cramer discusses the latest stock market news including Home Depot’s latest acquisition, FAANG stocks and the market’s response to Moderna’s vaccine.

Stocks jumped Monday after Moderna said its coronavirus vaccine candidate was 94.5% effective in a late-stage clinical trial. Dow and S&P 500 are heading for record closes after Moderna’s vaccine news.

TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about Home Depot’s latest acquisition, FAANG stocks and the market’s response to Moderna’s vaccine.

Home Depot: Buy Or Sell?

Home Depot,  (HD) – Get Report the world’s biggest home improvement retailer is set to buy HD Supply, which distributes tools and products to the maintenance and construction sector, at around $8 billion including group debt.

Cramer said it was a great acquisition for Home Depot. “They needed this business because of its maintenance and repair operations and it involves ten of thousands of clients. Once a troubled company HD has the firepower now and this is a very smart move.” 

Stocks to Hold This Winter

Among stocks to hold this winter, Cramer said to hold Disney  (DIS) – Get Report, and Facebook  (FB) – Get Report and buy Alphabet  (GOOGL) – Get Reportthis week.

“Disney has got an upcoming analyst meeting. Till the Pfizer news, I would have taken profits in it but now you can’t. Disney will have to have a theme park story on the barbell with Disney + to carry them over. Disney knows how to tell a story better than almost any company in the world.”

Google parent Alphabet will have a great quarter. “Alphabet is all about Youtube and ads particularly, travel ads. That’s where they have really been hurt.  Google is the cheapest stock in the FAANG. I’d buy a fraction of those shares.”

Cramer said Facebook is doing well. “Facebook has been aggressive they are taking share from TikTok which is good. It will have to be appreciably higher before we let their stock go. The company has changed for the better because I see it more as an ambassador for small businesses than a predator.”

Markets Monday

Moderna said Monday that its developing coronavirus vaccine candidate surpassed the efficacy rate of Pfizer Inc.’s. Moderna said its vaccine hit a 94.5% efficacy rate, topping the 90% threshold reported by Pfizer last week

Cramer said distribution is the unrealistic aspect of the upcoming Covid-19 vaccines by Moderna  (MRNA) – Get Report and Pfizer  (PFE) – Get Report because we are not hearing anything about it. “We know there is a transition issue. Once again the government is behind the private sector which is doing a much better job.”

Regarding stocks Cramer said there was too much negativity about some stocks that have lots to do with going out and with commerce versus UPS which is involved with the distribution of the vaccine and e-commerce. “I don’t necessarily think that this is going to be a non-Amazon Christmas given that no one is going to get these vaccines anywhere near the time that people think they are going to.”

Disney, Facebook and Google are key holdings 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.