- CNBC’s Jim Cramer gave his take on Wednesday’s rally, warning investors not to buy any stock.
- “Today’s session shows that people are eager to get into this market in the worst way, and sometimes the worst way is just knocking on wood and buying whatever is left behind,” he said.
CNBC’s Jim Cramer examined the market action on Wednesday, saying the ongoing rally had eager buyers searching for promising stocks.
Major indexes saw gains on Wednesday, thanks to more promising inflation data that could signal the end of the Fed’s tightening cycle. Cramer said many on Wall Street may find new reasons to own various stocks that have lagged behind in the past, but he cautioned against buying anything.
“Today’s session shows that people are eager to get into this market in the worst way, and sometimes the worst way is just knocking on wood and buying whatever is left behind,” he said.
Kramer first pointed to the goal as an example. The department store retailer finished Wednesday up nearly 18%, with the rally fueled by an earnings report that easily beat Wall Street expectations. Investors rushed to buy Target shares because they were “looking for laggards that maybe shouldn’t be laggards,” or stocks that could play catch-up, Cramer said. He added that the company may look more attractive to Wall Street if inflation declines and consumers have more money to spend.
Estée Lauder fits this pattern, too, Kramer said. The cosmetics company suffered a major collapse from its highs earlier in the year, but has seen gains over the past few days. Estee Lauder does a significant amount of business in China, and Cramer suggested the stock’s rise could be fueled by hopes surrounding President Joe Biden’s meeting with Chinese President Xi Jinping.
“I think it’s worth breaking down today’s action because it shows how much people want to own stocks here, and buy stocks here,” Cramer said. “They have had a hard time finding new ideas that fit a scenario in which inflation cools quickly and we approach the end of the Fed’s rate hike cycle.”
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Disclaimer The CNBC Investing Club Charitable Trust owns shares of The Estee Lauder Company.
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