Jim Cramer says if the good news keeps coming in, investors can look for this rally to run.
There were a lot of new narratives on Wall Street today, Jim Cramer told his Mad Money viewers, and that’s great news for the bulls. If the good news continues overnight, look for the rally to continue tomorrow.
The first bit of good news came from China, where Covid cases are beginning to decline. This is welcomed news for the likes of Apple (AAPL) – Get Apple Inc. Report and Tesla (TSLA) – Get Tesla Inc Report that need to keep factories running. Next, we got better-than-expected earnings from United Airline (UAL) – Get United Airlines Holdings, Inc. Report, a reassuring signal that the consumer is still in great shape.
We also learned that consumers at Home Depot (HD) – Get Home Depot, Inc. Report aren’t cutting back, they’re trading up to more expensive items. This is in sharp contrast to Walmart (WMT) – Get Walmart Inc. Report, which reported abysmal earnings that sent shares down 11%.
Speaking of upgrades, Advanced Micro Devices (AMD) – Get Advanced Micro Devices, Inc. Report received one Tuesday that sent the entire semiconductor cohort higher. The banks were lifted by news that Warren Buffett is investing in Citigroup (C) – Get Citigroup Inc. Report, making it the “must-have” stock.
Finally, Cramer said it looks like the selling may be subsiding in shares of Walt Disney Co. (DIS) – Get Walt Disney Company Report.
All eyes are back on China for Wednesday’s session, however. If we receive more good news, and more good earnings, then look for the rally to continue. But if there’s no good news, then all bets are off and look out below.
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