Stocks traded mixed Monday as a selloff in bonds indicated investors expected stronger economic growth amid rising fears of inflation.
TheStreet’s Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about Boeing’s grounded 777s, the flurry of EV SPAC deals, and DoorDash’s misplaced valuation.
Boeing: Buy Or Sell?
Boeing (BA) – Get Report shares slipped after the planemaker’s 777 jets were grounded by certain airlines, including United Airlines after an engine failure on Saturday forced the airline’s jets to make an emergency landing in Denver.
Boeing supported the decisions by the Federal Aviation Administration and airlines to suspend operations of its older 777s.
Cramer urged investors to buy Boeing stock. “Boeing planes can fly with one engine and land and no one died… That’s why I’m urging people to buy Boeing right now!”
DoorDash: Buy Or Sell?
Cramer said there is a perception that the consumer wants to eat at home. “That’s going to be pre-eminent. DoorDash needs to have a lot more delivery people and it has to be able to make it so that, restaurants don’t lose so much money. When we open, people are going to go out so DoorDash’s valuation at $61 billion is a mistake.”
The Latest SPACs
Electric-vehicle maker Xos on Monday agreed to go public by merging with the special purpose acquisition company NextGen Acquisition NGAC, the latest blank-check-company initial public offering.
Last week, EV startup Lucid Motors said it was close to going public by merging with a blank-check company started by investment banker Michael Klein.
Cramer said these deals are for real but overvalued. “It might be worth $50 billion – $60 billion to the market. To me, that seems high. But everyone wants to find the next Tesla (TSLA) – Get Report. A lot of the SPACs that I’m looking at have to do with EV.”