Cramer: Pent-up demand to define the next leg of the bull market

CNBC’s Jim Cramer on Wednesday laid out a basket of stocks that are set to bounce back when the U.S. reopens again, though the timeline remains elusive.

“Pent-up demand. Get used to hearing that term because it’s going to define the very next leg of this just impossible-to-believe bull market,” the “Mad Money” host said.

The comments come after the S&P 500 rose to a new closing high as investors weighed the odds of stimulus talks in Washington, and Cramer said the pent-up demand trade helped the major averages rebound from their lows on the day.

The S&P 500 inched up 0.2% to 3,669.01. The blue-chip Dow Jones rose almost 60 points for a 0.2% gain to 29,883.79. The tech-heavy Nasdaq Composite slipped 0.1% to 12,349.37.

The Covid-19 vaccine from Pfizer and BioNTech received authorization from the British government, with plans to roll out the inoculation in the United Kingdom next week. The two drugmakers, along with Moderna, are seeking emergency use authorization in the U.S.

“Once we get closer to herd immunity, everything that got put on hold during the pandemic can make a comeback,” Cramer said.

Cramer expects pent-up demand to be a great benefit airlines, cruise lines, hotels and other industries connected to travel. He named Boeing, United Airlines, American Airlines, Wynn Resorts, Las Vegas Sands, Norwegian Cruise Line and Disney for some vacation picks. He also expects Alphabet, which owns search giant Google, to see a windfall from travel ads.

While he is not a fan of oil, Cramer said the industry also stands to benefit. Chevron and Pioneer Natural Resources are the only two companies in the space that he is recommending as buys.

In the banking space, American Express is the best play for the financial sector comeback, Cramer said.

“While these stocks have been creeping up, I now expect them to explode higher as the analysts are forced to raise numbers,” said Cramer, who also acknowledged that the market is due for a pullback. “These pent-up demand groups, well, they can have a lot more upside now that the vaccine’s right around the corner.”

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[bigmaky]

My mission is simple, to make you a bag holder. I'm Cramer.

[peggykruse]

From my experience trading stock, I've learnt that when you're waiting for the market to crash it won't and will happen in the twinkle of an eye, very fast that if you knew nothing about the trade signal you'll be a victim of circumstance because you'll end up investing when it is the real time for the manipulation of the market thereby leaving you in the state either liquidation of your investment or bearing a very great loss

[ethanjohnston]

Hey @CNBC it wouldn't be a bad idea to update your outro with a phone newer than an Iphone 4 and the Twitter app from this decade

[chrisbentsen]

I bought these stocks back in March. Boeing and NCLH. I am bullish on BA over the long term. There are only two major airplane manufacturers in the world.

[august]

A guest on the TV spoke sometime last week about making over $431, 000 in 4months with a capital of $100, 000, which made me realize that as a beginner i have alot to learn, so please assist me with any pointers or tips that would help me make this much profit, i want to invest for the Christmas.

[davy]

It bothers me that every thing he talked about explains how more than ever there will be a huge gap between those with money and those without.

How many families are going to be able to go to Disney World, or take a cruise etc? I don't see that as a given.

I trade stocks. I enjoy it very much. Love Cramer too. However, I don't think we are set for this "recovery." Imagine the amount of debt that has been taken on this year. Just seems off to me.

[michaelprescott]

didn't think it was possible LOVE cramer anymore but finding out we have the same HATE for Turkey Neck Mitch I LOVE him even more

[abbottmd]

seeing how well all the sentiment is now, i am trying to figure out what was the market so worried about back in March? Were they wrong then, or now? Doesn't seem like both can be right.

[jasoncrelopia]

Have been keeping an eye on Boeing since July when it hit 230, in and out several times and made tons of money. Now this time the deal is real, it's gonna hit 230 again and won't look back, so I will be long from now on. Come on, there are only two companies in the whole world in this business. Jim reassured me.

[Paul-mung]

All business, no politics. Good job! :-)

[tobybeat]

Nobody should trust Boeing until someone from that company goes to prison

[lazloholyfield]

Profit taking time, to many people say buy buy buy, that is the time to sell.

[rededwards]

Pent up DEMAND....TRAVEL....People are Sick and Tired of being STUCK at means HOTEL am buying HOTEL stocks...SOHO, STAY, AHT, BHR, PLYA, INN, RLH, etc...

[robertdaymouse]

How did that Carvana Recomendation from yesterday workout? Spoiler: -10.5% today. The smart money bought these stocks a month ago, a lot less up side now. "Buy these stocks.... the market is due for a correction"

[calvinmak]

Yeah there's pent up demand, but you need a steady income to be confident enough to spend. I don't see where the demand will come from when small business are getting slaughtered while layoffs are staying elevated.

[wertytrewqa]

Honestly I see a 6% correction before the end of January.

[BBradshawProductions]

That pent up demand list is what NOT TO BUY.

[TheDroidz]

Yes thank you for the McCon~ Dig, MUCH NEEDED. Should @Twitter Mitch McCon~

[tomr]

I don't get how stocks went up ATH when the economies were closed, and now they are supposed to go higher when the economy opens?
I think if money starts going into the real economy then wall street goes down.

[zz.]

But most of these stocks have the same value as pre-covid????!??