Jim Cramer video: Micron, Lucid, Boeing Jamie Dimon, debt ceiling
Shares opened higher on Wednesday after Tuesday marked another day of strong selling on Wall Street.
The Dow Jones Industrial Average rose 88.61 points, the Nasdaq Composite by 63.25 points and the S&P 500 by 16.23 points.
Jim Cramer and Jeff Marks, Senior Analyst at Action Alerts PLUS, discussed Micron (UM) – Get the report from Micron Technology, Inc. (MU), Sherwin-Williams (SHW) – Get the Sherwin-Williams Company Report, Boeing (BA) – Get the Boeing Company Report Jamie Dimon, The Debt Ceiling, Lucid (LCID) – Get the Lucid Motors report and much more.
Find the full interview in the video below:
Political headwinds abound
House Speaker Nancy Pelosi on Thursday set a date for a floor vote on the bipartisan $ 1,000 billion infrastructure bill, which she says would only take place if she had the votes to adopt it. Democrats have remained a divided house as progressives and moderates debate the price of President Biden’s $ 3.5 trillion program.
Pelosi said she would split the two bills on Tuesday, reversing an earlier promise that infrastructure would not be passed without the $ 3.5 trillion budget resolution, which was billed as the ” human infrastructure “. Progressive Democrats, including Alexandria Ocasio-Cortez, have since said they will vote “no” on infrastructure after the bills decoupling.
Meanwhile, Democratic Congressmen aim to prevent a government shutdown and raise or suspend the $ 28.4 trillion debt ceiling as Republicans largely refuse to raise the debt ceiling. Senate Republicans blocked votes to raise or suspend the debt ceiling.
Measures must be taken before midnight Thursday to avoid a partial government shutdown.
JP Morgan (JPM) – Get the JPMorgan Chase & Co. (JPM) report CEO Jamie Dimon called Congress’ approach to the debt ceiling “potentially catastrophic” in an interview with Reuters, calling the ongoing political rhetoric a costly distraction that compels the bank to prepare for a doomsday scenario. “Every time that happens, it corrects itself, but we should never even get close to it. I just think this whole thing is wrong and that someday we should just have a bipartisan bill and get rid of the debt ceiling. It’s all political, ”Dimon said.
Outside the legislation, Jerome Powell begins his second day of testimony in Congress on Wednesday, after Senator Elizabeth Warren called the Fed chairman a “dangerous man” and said she would oppose his re-appointment on Tuesday .
Micron is shaken by supply constraints
Amid the current semiconductor shortage, Micron said supply chain disruptions would impact its sales forecast for the current quarter when the chipmaker announced quarterly results after the bell of Tuesday closing.
Micron is forecasting first quarter revenue of $ 7.65 billion, well below analysts’ estimates of $ 8.6 billion.
The company manufactures both personal computer and data center DRAM chips as well as NAND memory chips.
Despite a fourth quarter earnings report that beat expectations with adjusted earnings of $ 2.42 per share on sales of $ 8.27 billion, Micron stock was down 3.19% to 70 , $ 77 at the opening of negotiations on Wednesday.
Sherwin-Williams portrays supply chain fiasco
Supply chain disruptions made another appearance on Tuesday when paint and coatings company Sherwin-Williams issued a warning on its third quarter results.
Sherwin-Williams said its third quarter results will be affected by supply constraints and inflation. The company said it expects third-quarter sales to be “down slightly” from a year earlier.
“The persistent and industry-wide constraints on raw material availability and price inflation that we previously reported have worsened, and we do not expect supply to improve or lower commodity prices in the fourth quarter as expected, ”John G. Morikis, chairman and CEO, said in a statement. “Our suppliers are now reporting that the impacts of Hurricane Ida are more severe and will last longer than originally thought.”
Boeing said a test flight of the 737 Max in China “went off without a hitch” last month as it appears the plan is cleared for service in the country. Sherry Carbary, president of Boeing China, said she hopes the Civil Aviation Administration of China (CAAC) will make a decision on the 737 Max by the end of the year.
The CAAC grounded the plane in 2019 following fatal crashes in Indonesia and Ethiopia. U.S. carriers, including Southwest, resumed flights of the 737 Max in the spring of 2021.
Boeing is a stake in Jim Cramer’s Action Alerts PLUS Charity Portfolio.
Hear what Jim Cramer says only to members of his Action Alerts PLUS Investment Club in Wednesday’s Daily Rundown.