With lawmakers in a stalemate about the debt ceiling, CNBC’s Jim Cramer said Monday to put faith in defensive stocks like health care, discount stores, and natural gas.
Cramer looked to the 2011 debt ceiling crisis for guidance, noting that even though history seems to be repeating itself, it’s not as simple as finding what rallied after that deal was finalized.
related investing news
3 hours ago
“You don’t want losers that turn into winners at this point. You want winners that stayed winners right through the worst of the debt ceiling talks,” Cramer said. “If the talks break down this time, you can bet the focus will be on uncertainty, credit concerns and the possibility of a recession, just like we were worried about a recession in 2011.”
Cramer recommended Oneok, a natural gas pipeline company, which just announced a merger with Magellan Midstream Petroleum for $19 billion. Although Oneok was down more than 5% at Monday’s close in the wake of the merger, Cramer considers the deal a “match made in heaven.” He cited Oneok’s success in 2011 when shares performed well through the debt limit uncertainty.
In the way of consumer-focused defensive stocks, Cramer pointed to Chipotle as a safe bet. The restaurant chain recently reported a successful quarter and its stock did well in 2011.
“Chipotle trades erratically at times, but the best time to buy it is when you have the most current information and right now that information is fresher than an al pastor,” Cramer said.
He suggested keeping an eye on clothing discounters Ross Stores and TJX, both of which are set to release earnings reports later this week.
Cramer also recommended Biogen and Eli Lilly, pharmaceutical companies making significant headway with drugs to fight Alzheimer’s disease. But Cramer said he feels Eli Lilly has a slight edge because of its popular weight loss and diabetes medicine, Mounjaro, which he dubbed a “wonder drug.”
“I wish I were less skeptical of a theoretical debt ceiling deal falling apart or coming together less than perfectly,” Cramer said. “Take these current negotiations with what we know from the history of 2011 and you’ll be ready for whatever this moment throws at you. Odds are it won’t be good.”
Jim Cramer’s Guide to Investing
Click here to downloadJim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
Disclaimer: The CNBC Investing Club Charitable Trust holds shares of TJX and Eli Lilly.
The cooling towers of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.
Danielle DeVries | CNBC
Power companies that are most exposed to the tech sector’s data center boom plunged early Monday, as the debut of China’s DeepSeek open source AI laboratory led investors to question how much energy artificial intelligence applications will actually consume.
Constellation, Vistra and GE Vernova have led the S&P 500 this year as investors speculated that AI data centers will boost demand for enormous amounts of electricity.
But DeepSeek has developed a model that it claims is cheaper and more efficient than U.S competitors, raising doubts about the vast sums of money the tech sector is pouring in to data centers.
The tech companies have anticipated needing so much electricity to supply data centers that they have increasingly looked to nuclear power as a source of reliable, carbon-free energy.
Constellation, for example, has signed a power agreement with Microsoft to restart the Three Mile Island nuclear plant outside Harrisburg, Pennsylvania. Talen is powering an Amazon data center with electricity from the nearby Susquehanna nuclear plant.
Vistra has not inked a data center deal yet, though investors see promise in its nuclear and natural gas assets. GE Vernova has soared this year as the market believes its gas and electric grid businesses will benefit from AI demand.
This is a developing story. Please check back for updates.
Executives from TravelCenters America (TA) and BP were joined by local elected officials at a ribbon cutting for the two companies’ first DC fast charging hub on I-95 in Jacksonville, Florida – the first of several such EV charging stations to come online.
Frequent road-trippers are no doubt familiar with TA’s red, white, and blue logo and probably think of the sites as safe, convenient stops in otherwise unfamiliar surroundings. The company hopes those positive associations will carry over as its customers continue to switch from gas to electric at a record pace in 2025 and beyond.
“Today marks a significant milestone in our journey to bring new forms of energy to our customers as we support their changing mobility needs, while leveraging the best of bp and TA,” explains Debi Boffa, CEO of TravelCenters of America. Boffa, however, was quick to – but TA is quick to point out that TA isn’ no’t leaving its ICE customers behind. “While this is significant, to our loyal customers and guests, rest assured TA will continue to provide the same safe and reliable fueling options it has offered for over 50 years, regardless of the type of fuel.”
The charging hub along the I-95 offers 12 DC fast charging ports offering up to 400kW of power for lickety-quick charging. While they’re at the TA, EV drivers can visit restrooms, shop at TA’s convenience store, or eat at fast food chains like Popeyes and Subway. Other TA centers offer wifi and pet-friendly amenities as well – making them ideal partners for BP as the two companies builds out their charging networks.
“As we expand our EV charging network in the US, I am thrilled to unveil our first of many hubs at TA locations,” offers Sujay Sharma, CEO of BP Pulse Americas. “These sites are strategically located across key highway corridors that provide our customers with en route charging when and where they need it most, while offering convenient amenities, like restaurants and restrooms.”
The new e2500-THL and TS electric Ultra Buggies from Toro offer construction and demo crews a carrying capacity of 2500 lbs. (on the TS model), six-and-a-half foot dump height (on the THL), nearly 13 cubic ft. of capacity, and hours of quiet, fume-free operation.
For their open-mindedness, those crews will be rewarded with machines powered by 7 kWh’s worth of Toro HyperCell lithium-ion battery. That’s good enough for up to eight hours of continuous operation, according to Toro – enough for two typical working shifts.
And, thanks to the Toro Ultra Buggies’ narrow, 31.5″ width, they can easily navigate man doors on inside jobs, as well, making them ideal for indoor demolition and construction jobs. A zero-turn radius and auto-return dump mechanism that ensures the tub automatically returns to the proper resting position make things easy for the operator, too.
Toro says that each of its small (for Toro) e2500 Ultra Buggy units can replace as many as five wheelbarrows on a given job site. Pricing is expected to start at about $32,000.