Jim Cramer says Thursday’s rally reflects ‘significant interest’ from stock investors
CNBC’s Jim Cramer said Thursday’s session showed investors remain bullish and eager to buy stocks.
“This market has a huge appetite,” said the “Mad Money” host. “Someone who can’t hold back a bear … and is still hungry for more.”
I The Dow Jones Industrial Average increased by 874 points, or 1.7%. Meanwhile, the S&P 500 added 0.4% and tech heavy Nasdaq Composite changed -0.09%. The mixed performance came despite “two big headwinds,” Cramer said, that would normally have disrupted the market.
One of the reasons the market may have been bullish, according to Cramer, is that investors believe the recent earnings disappointment was not as bad as initially feared. He pointed to Broadcom’s history of issuing consecutive forecasts before delivering strong results over time, while noting that the stock had already seen significant growth in the earnings direction. Cramer also suggested that concerns about CrowdStrike may be overblown, arguing that the company’s cybersecurity results and outlook are stronger than the market’s implied reaction.
“The disappointment wasn’t really embarrassing,” he said.
Cramer also considers market acceptance Quantinuum’s An initial public offering is a sign of investor confidence. Quantinuum is a quantum computing spin-off company Honeywellwhich is a share in Cramer’s Charitable Trust, a portfolio managed by CNBC Investing Club. Demand for the deal was so strong that underwriters increased the size of the offering, and the stock ended its first day of trading relatively flat.
“I was willing to see a sloppy deal that would go up a few dollars and then roll over, bringing the market down,” Cramer said. “It didn’t happen.”
Instead, Cramer said the successful debut suggests investors remain eager to participate in new funds despite concerns about the growing pipeline of deals.
“That’s a huge burden of concern taken off the table,” Cramer said.
He also pointed out how the market is reacting to the renewed problems related to private debt. The news is that Blackstone Limited redemptions in private equity funds often hurt investors and depressed financial stocks, he said. Instead, Blackstone shares, KKRagain Ares everything went up.
“The market just chose to ignore it,” Cramer said.
In addition, Cramer noted that leadership extends beyond AI and the data center business. Financial, health care, and transportation stocks all took part in the rally, a sign that investor enthusiasm is spreading beyond a handful of tech winners.
Taken together, Cramer said the session highlighted a market that remains willing to look out for potential downsides and continue to buy stocks.
“At 4 am today we seemed to be on the way to one of the worst days of the year,” he said. “At 4 pm today we left thinking, what is this, how does a bull run over a matador?”
