Cramer’s Mad Money Recap: Southwest, Disney, FedEx

On Sep 24, 2021

The absence of two negatives turned out to be positive, Jim Cramer told his Mad Money viewers Thursday. Earlier this week, the market plunged on fear, but then we heard from the Federal Reserve and Chinese President Xi Jinping and all of that fear was magically forgotten.

Cramer said investors were fearing higher interest rates, but Fed Chair Jay Powell offered reassurance that now is still not the time to tighten. Investors also feared that Chinese land developer Evergrande would be allowed to fail, but that fear was erased by Xi. What does that leave investors to worry about? Only COVID.

Over on Real Money, Jim Cramer says it’s crazy that we don’t make semiconductors here in the U.S. Read more of what he says: ‘While the big guns meet at the White House about the global chip shortage, the president and these companies are approaching this all wrong.’

Depending on who you ask, COVID cases have, are, or soon will be peaking. According to Southwest Airlines (LUV) – Get Southwest Airlines Co. Report, they have. According to Walt Disney Co. (DIS) – Get Walt Disney Company Report, they haven’t. And according to Darden Restaurants (DRI) – Get Darden Restaurants, Inc. Report, it’s a solid maybe. But that single question holds the key to our economic recovery.

Case in point, FedEx (FDX) – Get FedEx Corporation Report, which told investors that its Portland, Oregon hub is operating with only 65% of its workers? Where did the other 35% go? Presumably they are either sick, caring for someone who’s sick or at risk, or are scared of getting sick. But as cases peak and herd immunity kicks in, those workers will slowly return, allowing transportation and supply chains across the nation to recover.

That’s why Jay Powell is right that inflation is transitory, Cramer said. Once workers return to work, supply chains will work out their issues, allowing prices to return to normal.

Executive Decision: Wynn Resorts

In his first “Executive Decision” segment, Cramer spoke with Matt Maddox, CEO of Wynn Resorts (WYNN) – Get Wynn Resorts, Limited (WYNN) Report, the casino operator with properties in Las Vegas, Boston and Macau in China. Shares of Wynn are up 19% for the year.

Maddox spent most of the interview reassuring investors that China’s crackdown on Macau will not derail gambling in the region or put shareholders at risk. He said the proposed changes are not punitive, they’re practical. They’re designed with the health and stability of Macau in mind and they will likely make Macau just as regulated as Las Vegas is here in the U.S.