Cramer still believes in the long-term viability of these two stocks.
CNBC’s Jim Cramer has his finger on the business news pulse, and early Thursday he gave his prognosis for two big companies that have generated big headlines this week.
Cramer took to social media this morning to weigh in on the reported $8.9 billion settlement Johnson & Johnson (JNJ) – Get Free Report made to settle any potential litigation tied to its talcum powder product that allegedly causes cancer.
“Many of the articles that question the proposed settlement between JNJ and the plaintiffs don’t realize that the plaintiff’s lawyers risk getting nothing if this Supreme Court gets its hands on the case,” Cramer tweeted.
Shares were down more than 3% and the numbers were disappointing, but Cramer is still a fan.
“Yes, Costco’s numbers were disappointing. But Costco has had a history of merchandise cost correcting and it will do so again,” Cramer tweeted.
Costco said sales for the five weeks ending on April 2 were up 0.5% from last year to $21.71 billion, well shy of the 6.5% pace recorded over the three months ending on February 12. Comparable U.S. sales were up just 0.9%, down from 3.5% in February and the Street consensus forecast of 3% amid a pullback in gas prices .
Last month, CFO Richard Galanti told investors that the group had seen “weakness in what I’ll call big ticket discretionary items” heading into the start of the spring.
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