Stocks rose Thursday and Treasury yields edged higher after a report said President-elect Joe Biden could unveil a Covid-19 relief package of about $2 trillion.
TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about Tesla’s recall of 158,000 vehicles, the rise in jobless claims and Biden’s yet-to-be-announced stimulus package.
Tesla: Buy Or Sell?
The National Highway Traffic Safety Administration has asked electric vehicles maker Tesla (TSLA) – Get Report to recall 158,000 of its battery-powered Model S sedans and Model X SUVs over media control unit failures.
The vehicles are said to “contain a defect related to motor vehicle safety,” the NHTSA wrote in a formal letter to Tesla.
Cramer said the recall will not affect investor confidence in Tesla. “Tesla is a tech company and sometimes you have to recall somethings, there is so much tech in their cars. It’s not going to cause a shortfall in sales going forward and that’s what matters.”
Jobless Claims Rise
Jobless claims rose to near 1 million last week, backing up their highest level since last August, as the coronavirus pandemic continued to spur companies to shed workers.
Cramer said that number is indicative of how badly we need a stimulus. “I think it should be a targeted stimulus. It should be going to the 960,000 people and not just everybody who then goes on has a job, and younger people who go right to Robinhood and they buy stocks. We are in a situation where it is very important that the right people get the money and that would mean giving it to the people who don’t have it.”
President-Elect Joe Biden could unveil a $2 trillion spending plan Thursday that includes direct check payments of $2,000, in an effort to revive the COVID-hit economy.
Cramer said the stimulus package would be great for the markets and not great for the people who are hurting. “They need to get all the money given to the gainfully employed people. If the [government] forgave student debt it would definitely lead to some sort of rally. There are two economies – the investing stocks economy and the real economy. The former is being fueled like never before.”
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