You may not be able to see it yet, at least in the stock market, but the signs are clear: Without additional stimulus, our economy is going back into full COVID-19 mode, Jim Cramer cautioned his Mad Money viewers Tuesday. Cramer said that on days like this, investors are only focusing on the on the best while they ignore all of the rest.
Just look at today's biggest winners. Cramer said Amazon( AMZN ) - Get Reportcontinues to thrive in a COVID-19 world, at the expense of small retailers everywhere. Ralph Lauren( RL ) - Get Reportrose 5.4% Monday, after it announced it's laying off 15% of its staff as it continues to transition from mall-based stores to online sales. The biggest winners in retail? Lululemon Athletica( LULU ) - Get Reportand Nike( NKE ) - Get Report, two brands that already have strong online followings.
In the restaurant space, Chipotle Mexican Grill( CMG ) - Get Reportand Darden Restaurants( DRI ) - Get Reportremain big winners, as they've got the scale and expertise to handle social distancing and takeout, while many local restaurants do not.
Other COVID-19 winners include all of the usual suspects, including Zoom Video( ZM ) - Get Report, cybersecurity stocks like Zscaler( ZS ) - Get Reportand Palo Alto Networks( PANW ) - Get Report. DocuSign( DOCU ) - Get Reportclosed the day strong as well. So too did Carvana( CVNA ) - Get Report, which knows how to sell cars online.
But for each of these publicly traded winners, there are countless small business losers, Cramer said. These businesses won't survive once colder weather hits and COVID-19 cases begin to spike. And if there's one thing we've learned, it's that cases will spike again as our economy reopens.
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At the time of publication, Cramer's Action Alerts PLUS had a position in NKE, AMZN.