It’s Monday, y’all.
TheStreet Live is back, with Jim Cramer based in Brooklyn, New York City.
So here are some of the topics that Cramer and Katherine Ross will be discussing live at 10:30 am ET.
Microsoft’s Biggest Acquisition Since LinkedIn
Nuance and Microsoft have agreed to a nearly $20 billion deal that has Microsoft taking over Nuance.
In terms of details, Microsoft will pay $56 a share for Nuance, which is a 23% premium to the Friday closing price. The deal is all-cash, totaling around $19.7 billion including $1 billion in Nuance debt.
“Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI,” said Microsoft CEO Satya Nadella. “AI is technology’s most important priority, and healthcare is its most urgent application. Together, with our partner ecosystem, we will put advanced AI solutions into the hands of professionals everywhere to drive better decision-making and create more meaningful connections, as we accelerate the growth of Microsoft Cloud in Healthcare and Nuance.”
“The path forward is clearly with Microsoft — who brings intelligent cloud-based services at scale and who shares our passion for the ways technology can make a difference,” said Nuance CEO Mark Benjamin, who will remain CEO of Nuance. “At the same time, this combination offers a critical opportunity to deliver a meaningful and certain value to our shareholders who have driven and supported us on this journey.”
Time to Buy During the Next Rate Hike?
Jim Cramer warns against listening to the bears who, he says, “have been shown to demonstrate historical ignorance.”
He broke down for investors why the next rate hike might be for buying, and not selling, time.
“What does happen when the Fed starts tightening? I’ve been through a lot of Fed rate increases and it’s not a pretty sight, at least initially. Historically almost all tightenings are accompanied by a catch-all terminology that you better get used to hearing: soft landing and hard landing,” Cramer wrote in his Real Money column on Monday morning.
“The soft landing people are trying to keep you in. The hard landing people are trying to get you out. The latter represents the worst kinds of commentators because they can always point to some difficult tightening cycles like the one that preceded The Great Recession and make a case that it’s time to sell NOW,” wrote Cramer. “Given that the market is at a high, their voices will resonate louder than all the others. After they call for it, you can expect the sell call will be self-fulfilling.”
Jay Powell’s Comments on the Economy
Last night, on “60 Minutes,” Jay Powell sounded positive on the economy, saying, “I would say this. What we’re seeing now is really an economy that seems to be at an inflection point.”
“We feel like we’re at a place where the economy’s about to start growing much more quickly and job creation coming in much more quickly,” he continued.
Powell added that widespread vaccination for COVID-19 and strong fiscal and monetary policy support from the federal government were all boosting the nation’s economic engine.
However, there is still a risk.
“The principal risk to our economy right now really is that the disease would spread again,” said Powell. “It’s going to be smart if people can continue to socially distance and wear masks.”
Curious about what Jim Cramer and his team at Action Alerts PLUS are watching in the markets? Watch Cramer’s exclusive members-only Daily Rundown show on Action Alerts PLUS following TheStreet Live.