Stocks were rising Tuesday as Wall Street traded cautiously ahead of two key Senate runoff elections in Georgia.
TheStreet’s Katherine Ross discussed breaking news in the stock market. Cramer spoke about the change of leadership at Qualcomm, NYSE’s reversal to delist Chinese telecom companies and stock market uncertainty due to Georgia runoffs.
Qualcomm: Buy Or Sell?
Qualcomm (QCOM) – Get Report said Tuesday that longtime CEO Steve Mollenkopf will step down as head of the network equipment maker to make way for current president Cristiano Amon.
Cramer said Qualcomm now has an international person in charge who is dynamite. “Cristiano is a remarkable guy. He really understands technology. He’ll do a terrific job. Qualcomm is one of my favorite 5G stocks along with Apple (AAPL) – Get Report, Broadcom (AVGO) – Get Report and Skyworks (SWKS) – Get Report. My favorite though is Marvell Tech (MRVL) – Get Report.”
China’s three largest telecom majors surged Tuesday in Hong Kong after the New York Stock Exchange reversed its decision to delist the shares.
China Mobile (CHL) – Get Report China Telecom (CHA) – Get Report and China Unicom (CHU) – Get Report each jumped after the Big Board in a statement late Monday said: “it no longer intends to move forward with the delisting action.”
The NYSE cited “consultation with relevant regulatory authorities” for its reversal.
Cramer speculated that this could have been done in consultation with President-elect Joe Biden. “….could it be that things are going to get better with China. The Chinese listings are hugely valuable to the New York Stock Exchange. The NYSE is doing what it should do.”
Markets on Tuesday
Cramer said the uncertainty around the Georgia runoffs has created a lot of nerves. “So, we end up with people who say, I’ve got big profits, let me take them and that’s what is happening. The profits in the Dow and some of the older stocks are immense.”
“A lot of people are visioning that the Senate goes Democratic which means the end of gridlock. It means raising taxes, changing capital gains taxes, changing taxes on dividends.”
Apple, Broadcom and Marvell are key holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.