Warren Buffett versus Italian bonds — it was a titanic match-up that would move the markets on Monday, but in the end, the rising bond yields in Italy caused U.S. stocks to end lower .
Stocks have lately focused on headlines from Europe as traders react to the escalating sovereign debt crisis in the euro zone. Italian benchmark bond yields rose above 7 percent last week, a level that forced countries with a lower debt burden to seek bailouts. With debt of more than 2 trillion euros, Italy is considered too big to bail out. Yields on 10-year Italian debt rose to 6.76 percent on Monday.
Investors then turned their attention to billionaire investor Warren Buffett, who told CNBC that his firm, Berkshire Hathaway , has purchased $10.7 billion worth of IBM stock this year.
"That was a total stunner," Cramer said. "Buffett, who has historically eschewed tech, has put $10 billion to work in a company that has transformed itself from a somewhat unpredictable hardware business to a software and consulting business that sells hardware and has consistent cash flows, which is what attracted Buffett to Big Blue."Page 1 of 2 | Next Page