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    History shows investors should stick to profitable companies if Fed tightens inflation action, Jim Cramer says

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer on Thursday advised investors to invest in profitable companies if the Federal Reserve institutes a half-point double rate hike, using an analysis of the Fed’s last double rate hike and its aftermath in 2000.
    “The lesson of 2000 is to stick with profitable companies with real products or services that also have meaningful dividends and buybacks, and to sell the rest,” the “Mad Money” host said.

    CNBC’s Jim Cramer on Thursday advised investors to invest in profitable companies if the Federal Reserve institutes a half-point double rate hike, using an analysis of the Fed’s last double rate hike and its aftermath in 2000.
    “We know what works when the Fed tightens aggressively. The lesson of 2000 is to stick with profitable companies with real products or services that also have meaningful dividends and buybacks, and to sell the rest,” he said.

    The “Mad Money” host’s comments come after traders predicted half-point rate hikes in May and June in response to Federal Reserve Chairman Jay Powell’s pledge on Monday to take strong action against surging inflation.
    The Dow Jones Industrial Average rose 1% on Thursday while the S&P 500 gained 1.4%. The Nasdaq Composite climbed 1.9%.
    Cramer noted that when then Fed Chair Alan Greenspan implemented a double rate hike in May 2020, the dotcom bubble had burst two months earlier. The Fed had already raised interest rates five times over the previous 11 months, with the May interest rate concluding the tightening cycle, he said.
    The Nasdaq lost 78% of its value from its peak in March of that year to October 2002, with 60% of the loss happening after Greenspan implemented a double rate hike, according to Cramer. The S&P 500 fell 50% from its peak with almost 90% of its decline coming after the rate hike while the Dow Jones Industrial Average went down 39% from its high with 80% of the decrease coming after the hike, Cramer said.
    Some winners included healthcare, energy and financial stocks, while tech stocks plummeted due to the burst of the dotcom bubble, he added.

    However, the host reminded viewers that there are outside factors that make both the current markets and the markets in 2000 unique and not directly comparable, including the current Russia-Ukraine war and the recession in the early 2000s.
    “I don’t think we’re watching a one-to-one replay of the dotcom collapse. … But it wouldn’t surprise me if the averages experience more pain between now and the next Fed meeting in early May, especially the unprofitable companies in the tech-heavy Nasdaq,” he said.
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    Disclaimer

    Questions for Cramer?Call Cramer: 1-800-743-CNBC
    Want to take a deep dive into Cramer’s world? Hit him up!Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
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    Agco CEO says Russia-Ukraine war's potential consequences on global food supply is 'a really big deal'

    Monday – Friday, 6:00 – 7:00 PM ET

    Diminished food supply resulting from Russia’s invasion of Ukraine has potential consequences beyond empty stomachs, Agco chief executive Eric Hansotia told CNBC’s Jim Cramer on Thursday.
    “This is a really big deal, because when that volume of calories comes out of the food chain, it triggers other things. Not only hunger, but unrest,” Hansotia said.

    Diminished food supply resulting from Russia’s invasion of Ukraine has potential consequences beyond empty stomachs, Agco chief executive Eric Hansotia told CNBC’s Jim Cramer on Thursday.
    According to Hansotia, about “13% of the global calories came out of production” when Russian and Ukrainian borders shut down.

    “This is a really big deal, because when that volume of calories comes out of the food chain, it triggers other things. Not only hunger, but unrest. The last time we had this kind of disruption, it was one of the major triggers for the Arab Spring,” he said in an interview on “Mad Money,” referring to the pro-democracy protests that took place in the Middle East and North Africa in the early 2010s.
    The Russia-Ukraine war has put pressure on farmers globally to produce more crop to make up for a gap in supply left by the two countries. As prices of wheat rise, so do prices of fuel and fertilizer that drive up costs for farmers. 
    Cramer warned earlier this week that wheat and corn futures would continue to rise and urged investors to invest in a basket of agriculture stocks, with Agco earning a spot on the list.
    Hansotia said that Agco is prioritizing helping farmers increase their crop without exhausting their limited supply or making purchases that could eat into their profits. He added that the company’s investment into technology firms like Apex.AI and Greeneye Technology, as well as its acquisition of Appareo Systems has helped in this mission.
    As for the agriculture company’s business operations in Russia and Ukraine, the chief executive said that the company has prioritized the safety of its employees and dealers.

    “We moved a lot of them out to the safer part of the country or across the border. Hundreds, in fact, have been part of that process,” he said, adding that the company tracks the employees and provides funds for them.
    Another priority is “helping the farmers in that area stay productive,” Hansotia said. Agco has also helped provide housing for displaced Ukrainians and made donations to assist refugees, he added.
    Agco stock rose 1.34% on Thursday.
    Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
    Disclaimer

    Questions for Cramer?Call Cramer: 1-800-743-CNBC
    Want to take a deep dive into Cramer’s world? Hit him up!Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
    Questions, comments, suggestions for the “Mad Money” website? [email protected]

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    Cramer's lightning round: Stanley Black & Decker is a buy

    Monday – Friday, 6:00 – 7:00 PM ET

    It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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    Enovix Corp: “There was a time when you and I would sit around … and just be celebrating over a glass of wine about [Enovix], but that ship has sailed.”

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    Yandex NV: “That’s not really trading. It’s kind of like, halted. Like, really halted. It’s a Russian stock.”

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    Ferguson PLC: “It’s real, they make things, they sell them, they give you money back. It’s good. I say, I like Fergie.”

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    JetBlue Airways Corp: “That company does not make money, but the travel business is so great. … So, I’m going to say it’s okay.”

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    Peabody Energy Corp: “I just can’t recommend [coal] because I know it’s going away, and I’m not going to be the last guy to recommend coal in this country.”

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    Hedge funds choosing 'fresh' stocks over obvious winners drove Thursday's rally, Jim Cramer says

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer said that Thursday’s rally was driven by hedge fund managers’ desire for fresh stocks over trusted winners and that investors should not overthink the currently seesawing market.
    “The hedge funds are in charge here, which is how you get today’s rotating bullishness. Please, never try to overthink what happens in some of these rallies,” the “Mad Money” host said.

    CNBC’s Jim Cramer said that Thursday’s rally was driven by hedge fund managers’ desire for fresh stocks over trusted winners and that investors should not overthink the currently seesawing market.
    “Traders wanted something new — not Archer-Daniels-Midland or Exxon, but AMD and Estee Lauder,” the “Mad Money” host said. “The hedge funds are in charge here, which is how you get today’s rotating bullishness. Please, never try to overthink what happens in some of these rallies,” he added.

    The Dow Jones Industrial Average gained 1% on Thursday, while the S&P 500 rose 1.4%. The Nasdaq Composite increased 1.9%. The markets have teetered up and down for the past few days after last week’s monster rallies, with the S&P 500 and the Nasdaq on track to close the week higher.
    Cramer said that Thursday’s rally exemplifies hedge fund traders’ penchant for buying “stuff that feels fresh and new” after growing tired of obvious winners.
    “That’s the real mindset right now,” he said. “That’s how it works, it’s the way hedge funds actually think, and hedge funds seem to be the only players in the game right now. … I’m not seeing a lot of institutional interest in stocks right now.”
    Examples of such fresh stocks are Nvidia and Intel, which led the day’s semiconductor stock bounce, said Cramer. Nvidia stock rose 9.8%, its best day since November, while Intel had its biggest single-day gain in more than a year with a 6.94% increase.
    Other stocks that traders looked for include “how much lower can they go stocks,” Cramer said, pointing to DocuSign as an example. The company’s stock price increased 4.37% on Thursday to $104.55, but is still well below its 52-week high of $314.76.

    Cramer added that investors should not let fears about the Russia-Ukraine war control their investing decisions, particularly regarding purchasing stocks. 
    “Shouldn’t we be more worried about Ukraine? Yes. Does it make sense to buy anything here with Ukraine hanging over our heads? Well, maybe,” he said.
    Disclosure: Cramer’s Charitable Trust owns shares of AMD and Nvidia.

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    Stocks making the biggest moves after hours: The Honest Company, Tilray and more

    : The Honest Company founder and chief creative officer Jessica Alba and The Honest Company CEO Nick Vlahos ring the Nasdaq Stock Market opening bell to mark the company’s IPO at NASDAQ MarketSite on May 05, 2021 in New York City. (Photo by Dimitrios Kambouris/Getty Images for The Honest Company )
    Dimitrios Kambouris | Getty Images Entertainment | Getty Images

    Here are the stocks making headlines in after-hours trading.
    The Honest Company — The consumer products stock sank 19% in extended trading Thursday after Honest reported a weaker-than-expected fourth quarter. The company lost 10 cents per share on $80.38 million in revenue. Analysts surveyed by Refinitiv were looking for a loss of 6 cents per share on $84.6 million in revenue.

    Nio — The U.S.-traded shares of the Chinese electric-vehicle company rose about 1% in anticipation of Nio’s earnings report later tonight. The company’s quarterly results could give investors insight into production difficulties and consumer demand in China.
    Tilray Brands — The cannabis stock popped 12% in after-hours trading, building on a gain of nearly 22% during Thursday’s regular session. Pot stocks were higher across the board on Thursday after the U.S. House of Representatives announced that they will consider the Marijuana Opportunity Reinvestment and Expungement Act next week. A previous version of the bill passed the House but stalled in the Senate. Shares of Tilray are still down more than 90% from their all-time high.

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    Dow rallies 300 points, Nasdaq gains 1.9% as chip stocks lead market rebound

    Stocks rallied Thursday, clawing back the previous session’s losses, as falling jobless claims added to confidence in the U.S. economic recovery.
    Shares that have the most to gain from a rebounding economy, including chip and materials stocks, led the gains.

    The Dow Jones Industrial Average rebounded by 349.44 points, or 1%, to close at 34,707.94. The S&P 500 added 1.4% at 4,520.16. The Nasdaq Composite rose 1.9% to 14,191.84.
    Stocks have seesawed this week, alternating between up and down days. The S&P 500 and the Nasdaq are on track to close the week higher.
    “There has been so much volatility over the past week or so,” Victoria Fernandez, chief market strategist at Crossmark Global Investments, said. “We’re seeing a combination of some good economic news, some people going in and picking up names. That’s why we see a little bit of a bounce here.”

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    A drop in jobless claims to the lowest level in decades gave some investors confidence the U.S. economy could keep growing through headwinds such as the Russia-Ukraine war and higher interest rates. Initial jobless claims last week totaled 187,000, the lowest level since 1969, the Labor Department reported Thursday.
    Thursday’s rally gained steam as the day went on, with technology and materials stocks leading the way.

    Chip stocks climbed Thursday, with shares such as Nvidia among the favorites of traders to buy in market upswings. These chip companies also stand to benefit in a continuing global economic recovery from the pandemic. Nvidia jumped 9.8%. Intel added 6.9%, and AMD rose 5.8%.
    Materials was the second-best-performing S&P 500 sector Thursday. Nucor added 4.3%, and Freeport-McMoRan rose about 3.3%.
    Uber gained nearly 5% after the company announced a deal to list all New York City taxis on its app.
    Meanwhile, bitcoin rose nearly 4% in another sign of rising risk appetite.

    Stock picks and investing trends from CNBC Pro:

    Investors are continuing to monitor the war in Ukraine and weigh the Federal Reserve’s rate hikes amid persistent inflation.
    Last week, the Fed raised interest rates for the first time since 2018. Chair Jerome Powell on Monday vowed to be tough on inflation and opened the door for more aggressive half-percentage-point rate hikes.
    NATO leaders met in Brussels Thursday to discuss increasing pressure on Russia, as Ukraine appears to be retaking ground in the war.
    “While the stock market is attempting to recover from its correction, markets are fundamentally riskier and more uncertain than before Russia’s invasion of Ukraine,” said Richard Saperstein, chief investment officer at Treasury Partners.
    The indexes are coming off a big rally last week, their best weekly performance since 2020.
    All three major averages are on track to close the month higher. The S&P 500 is up 3.3% in March. The Nasdaq is 3.2% higher, and the Dow is up 2.4%.

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    Stocks making the biggest moves midday: Nvidia, Logitech, Nikola, Uber, Cleveland-Cliffs and more

    NVIDIA President and CEO Jen-Hsun Huang
    Robert Galbraith | Reuters

    Check out the companies making headlines in midday trading.
    KB Home — Shares of the homebuilder fell 4.5% lower after missing on the top and bottom lines of its quarterly results. KB Home reported earnings of $1.47 per share on revenue of about $1.40 billion. Wall Street expected earnings of $1.56 per share on revenue of $1.50 billion, according to Refinitiv.

    Nikola — Shares for the electric vehicle company jumped 5.6%. The company began production of the battery-electric version of its Tre semitruck in its Coolidge, Arizona, factory.
    Nvidia, Intel — Shares for the two companies popped after reports that Nvidia may consider sourcing computer chips from Intel, according to Bloomberg. Also, Intel CEO Pat Gelsinger has been pushing government officials in the U.S. to support legislation to assist semiconductor production. Nvidia’s stock price jumped 9.8%, and Intel jumped 6.9%.
    GameStop — Shares of the video game retailer ticked up almost 1%. following a seven-day winning streak. The stock surged 14% on Wednesday after Chair Ryan Cohen bought 100,000 more shares and raised his stake to 11.9%.
    Steelcase — Shares of the office furniture maker tumbled 6.1%. The company reported an unexpected loss for its most recent quarter, even as revenue exceeded expectations. Steelcase cited supply chain issues and inflationary pressures.
    Logitech — Shares of the computer peripherals manufacturer rose 4% after Bank of America initiated coverage of the company with a buy rating. Though the stock is down about 13% this year, the analyst covering Logitech said it’s “too inexpensive to ignore.”

    NetApp — The cloud company’s stock price dipped 1%. Bank of America analysts on Thursday downgraded the firm to neutral from buy, saying NetApp has limited upside from here.
    Uber — Shares of the ride-sharing company rose 4.9% on news that it reached a deal to feature New York City taxis on its app. Through the deal, Uber will work with taxi-hailing apps Curb and Creative Mobile Technologies.
    Cleveland-Cliffs — Shares for the firm soared by 12% as global shortages in steel spurred interest in the manufacturer.
    Liberty Global — Shares of the European telecommunications company rose 2.3% after Credit Suisse upgraded the stock to outperform from neutral. The firm said in a note that “momentum was turning” for Liberty.
    — CNBC’s Margaret Fitzgerald, Yun Li, Tanaya Macheel, Jesse Pound and Samantha Subin contributed reporting.

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