Morning Bell With Jim Cramer: When to Buy Apple

Dow futures extend gains as progress develops from both stimulus talks in Washington and Brexit negotiations in Europe.

In the last episode of Mad Money, Jim Cramer said this is not the typical Santa Claus rally. Between vaccines, increased testing, and a potential stimulus bill in Washington, Cramer said investors aren't too bullish, they're probably not being bullish enough.

TheStreet's Katherine Ross and Cramer are talking about Boeing’s inspections of its 787 Dreamliners and buying Estee Lauder and Apple stocks.

Boeing Stock: Buy or Sell?

On Monday, Boeing Company  (BA) - Get Report reportedly expanded inspections of its newly produced 787 Dreamliners after finding a previously disclosed manufacturing defect in sections of the jet where the issue hadn't been initially detected.

Boeing engineers and U.S. air-safety regulators have determined that the issue doesn't pose an imminent safety hazard, Bloomberg reported.

However, the newly discovered defects are likely to increase the Federal Aviation Administration's scrutiny of 787 production safeguards.

Cramer said that Boeing is under a microscope and that is a “small” issue that they can fix. He added that the Dreamliners have been flying forever and there hasn’t been a real problem reported.

He believes that Boeing needs more orders which he said it will get when everyone gets the vaccine “because there is a huge demand and airlines are misjudging the amount of traffic that they will get when this pandemic ends.”

Estee Lauder Stock: Buy or Sell?

Last month, Estee Lauder  (EL) - Get Report posted a decline in fiscal first-quarter earnings Monday as the coronavirus pulled down revenue, but the cosmetics giant still beat Wall Street's expectations.

Estee Lauder reported net earnings of $523 million, or $1.42 a share, down from $595 million, or $1.61, a year ago. Adjusted earnings were $1.44 a share, beating analysts' calls for 90 cents a share.

When asked when is the right time to buy Estee Lauder, Cramer said that Estee Lauder products will be seen everywhere and “that is okay because Estee Lauder is a premium brand and you’ll pay for it.”

Apple Stock: Buy or Sell?

On Monday, Apple Inc. (AAPL) - Get Report said that it has begun telling customers more about the types of personal information the apps on its iPhones are collecting, according to media reports.

In a report on Tuesday, Nikkei said Apple has instructed suppliers to produce around 230 million iPhone handsets next year, a 30% increase from the pre-pandemic pace of 2019, with around 96 million slated for the first half of the year.

Cramer said that he thinks investors should be buying Apple this whole time because he has faith in the iPhone X and iPhone 12. He added that people should remember that President-elect Joe Biden will be “tough” on China but not the way it is now.

“The reason why people didn’t want to own Apple because of the possibility that China could shut them down will be off the table and that’s worth a lot,” Cramer said. “There is a possibility that there will be more demand just because the government will not make you feel like an outcast if you buy Apple phone”

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