Jim Cramer shared his thoughts on what the potential COVID-19 vaccine from Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) means for technology stocks that traded higher as stay at home plays.
Stay-At-Home Stocks: Cramer said the S&P 500 and Dow are up the correct amount, but the Nasdaq futures are up too much. He said many of the companies in the Nasdaq don’t benefit from the vaccine.
Cramer said the vaccine coming is not good news for cloud stocks and not good for the big run-up in stay-at-home stocks.
Some of the companies have risen this year as stay-at-home plays: “How many Nasdaq stocks can rally on this?”
Cramer said some stocks are rallying on Joe Biden being elected and the potential positives from improved relations with China and that’s okay.
Related Link: Biden And Trump React To Pfizer’s Vaccine Update, Stock Market Rally: Great News!
Buy Airlines: Cramer said the stocks that are rallying like airlines and theme parks are making the right moves.
Cramer said he would be “much more comfortable buying an airline stock up 10% than a cloud stock down 5%.”
Andrew Ross Sorkin asked Cramer if the stocks that are moving higher are worth buying since the timeline on approving a COVID-19 vaccine hasn’t changed.
Cramer said if you wait to buy, you’ll miss the whole move” “Stocks trade in anticipation.”
Cramer said there are “many, many companies that benefit.”
Price Action: The SPDR S&P 500 Trust ETF (ARCA:SPY) is up 4% to $365.75 in pre-market trading. The Invesco QQQ ETF (NASDAQ: QQQ) is up 1% to $296.55.
Airline stocks are rallying higher, with Southwest Airlines Co (NYSE: LUV) shares are up 15%, American Airlines Group (NASDAQ: AAL) shares are up 25% and JetBlue Airways Corporation (NASDAQ: JBLU) shares are up 18%.
The U.S. Global JETS ETF (NYSE: JETS) is up 20% to $21.35 on Monday.
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