Jim Cramer says Thursday’s rally shows investors’ ‘huge appetite’ for stocks
CNBC’s Jim Cramer said Thursday’s rally shows investors remain resilient and willing to buy stocks.
“This market has a huge appetite,” the “Mad Money” host said. “Someone who might not care for a bear… but might still be hungry for more.”
Dow Jones Industrial Average It rose to a record high, up 874 points or 1.7%. Meanwhile, S&P 500 Added 0.4% and was tech-heavy Nasdaq Composite decreased by 0.09 percent. Cramer said the mixed performance came despite the “two biggest hurdles” that would normally derail the market.
One reason the market is on the rise, according to Cramer, may be that investors are concluding that recent earnings disappointments were not as severe as initially feared. He noted that the stock had already rallied sharply heading into earnings, while noting Broadcom’s history of issuing conservative forecasts before later issuing stronger results. Cramer also suggested that concerns about CrowdStrike may be exaggerated and that the cybersecurity company’s results and outlook are stronger than the market’s implied reaction.
“The disappointments weren’t actually that disappointing,” he said.
Cramer also noted that the market’s reception quantum An initial public offering is a sign of investors’ resilience. Quantinuum is a quantum computing company Honeywell’sIt is a holding company of Cramer’s Charitable Trust, managed by CNBC Investment Club. Demand for the deal was so strong that underwriters increased the size of the offering, and the stock still finished its first day of trading relatively flat.
“I was prepared to see a sloppy deal that would go up a few dollars and then come back down, crashing the entire market,” Cramer said. “It didn’t happen.”
Instead, Cramer said the successful exit shows investors are willing to participate in new offerings despite concerns about the growing deal pipeline.
“This means a huge burden of concern is off the table,” Cramer said.
He also noted the market’s reaction to renewed concerns about private loans. The news is Karataş Limited repayments at its flagship private loan fund would generally shake investors and put pressure on financial stocks, he said. Instead, Blackstone’s shares KKRAnd ares all moved higher.
“The market chose to ignore it,” Cramer said.
Beyond that, Cramer noted that leadership extends beyond artificial intelligence and data center business. Financial, healthcare and transportation stocks all participated in the rally; It’s a sign that investor excitement is spreading beyond a handful of tech winners.
Taken together, Cramer said the session highlighted a market willing to push past potential hurdles and continue buying shares.
“At 4 o’clock this morning it looked like we were heading into one of the worst days of the year,” he said. “How did the bull run over the matador at 4 o’clock this afternoon?” We left thinking.
