CNBC's Jim Cramer explained why he thinks the stock market continues to rise, despite fears and uncertainty surrounding the coronavirus outbreak. The "Mad Money" host checked in with Cigna CEO David Cordani to get insight into how its multi-billion dollar merger with Express Scripts is panning out. Later in the show, he sat down with McCormick & Company CEO Lawrence Kurzius to understand why the situation in China could impact the company's bottom line.
CNBC's Jim Cramer on Thursday broke down why he thinks investors are being "disciplined" and the stock market continues to rise because of it, despite uncertainties surrounding the coronavirus outbreak.
Since the major indexes took a big plunge on Friday, the Dow Jones Industrial Average is now 520 points above its Thursday close. The S&P 500 is up almost 2%, and the Nasdaq Composite is up nearly 3% in that same period.
"Flow of funds can be a fickle way to invest, but right now the market is anything but mercurial or arbitrary," the "Mad Money" host said. "It's redoubtable. It's implacable. It's resolute. To buy on weakness isn't a stooge thing to do; it's the stooges who don't do the buying."
Cigna CEO David Cordani took a victory lap more than a year after the health services group executed a controversial takeover of prescription manager Express Scripts.
"We're proving the combination works. We're growing the company, as you noted," he told Cramer in an interview. "We increased our revenue guidance and our earnings guidance each of the last quarters of 2019 and we ended the year with another beat."
Executives and investors are trying to gauge how the coronavirus outbreak could affect business in real time, and McCormick & Company head Lawrence Kurzius was candid on Thursday, saying, "It's hard to say that it's a positive."
"Right now, it's hard to know the impact of the coronavirus in China. We have a large business in China," the chief executive told Cramer in a sit-down. "Part of it is supplying consumers, part of it is supplying restaurants. Consumers are not, you know, going out. A lot of the country's on lockdown."
In Cramer's lightning round, the "Mad Money" host delivered his thoughts about callers' top stock picks of the day in rapid speed.
ConocoPhillips: "Well look, I'm not a big fan of the fossil fuel stocks for a variety of reasons. You are in the one with the best growth profile, the large ones. Look, if you want to own it, it's got a 3% yield. It's OK."
Nucor: "If you like a steel company, it's the best steel company. I don't prefer steel companies. I think there's too much competition, but if you like them they are the one."