Market Review by Jim Cramer
On Tuesday, CNBC’s Jim Cramer took a look at recent activity on Wall Street, describing a “countertrend” rally as investors are shifting their focus toward large tech companies and other struggling sectors.
“This countertrend rally is still going strong, with many stocks from the first half of the year continuing to climb. However, I think we might see a brief cooling period for this year’s top performers,” he remarked.
In terms of specific index performance, the S&P 500 saw a slight dip of 0.11%. In contrast, the Nasdaq Composite dropped by 0.82%, while the Dow Jones Industrial Average gained 0.91%.
Cramer attributed a portion of these movements to the recent tax and spending bills pushed by President Donald Trump. Following the Senate’s passage of the Megaville bill, there’s been plenty of scrutiny back home. Many Republican lawmakers seem cautious, worried about the potential increase to the US deficit.
He mentioned that the Senate’s approval of the bill has positively impacted housing stocks, certain retailers, and banks. Yet he cautioned that some of this upswing was merely a fleeting moment for certain stocks, noting, “It’s just some stocks catching up after being left behind.”
Cramer identified a few standout stocks he believed were the “best of the bunch.” For housing, he pointed to Toll Brothers, particularly if affluent consumers receive a tax credit. He noted that high-end home builders have had a strong quarter. Among retailers, Cramer highlighted Home Depot and Kontoor Brands, which owns Wrangler and Lee Jeans. He expressed confidence in Home Depot’s long-term viability and commended Kontoor for its recent acquisition of outdoor gear brand Helly Hansen.
Furthermore, Cramer indicated that there are several stocks from the first half of the year that could continue to perform well. He specifically mentioned companies like Ge Vernova, Palantir, and Howmet, advising investors to remain patient with these stocks as market dynamics shift. However, he did suggest that those interested in Palantir might want to consider buying in after its recent dip.
