The general public has started trading fixed-income securities for stocks, Cramer said during Monday’s Stop Trading!. He pointed to Boeing and Merck, whose share prices “are flying,” as proof.
There’s been little good news from either company, Cramer said, but that hasn’t stopped Boeing [ BA 57.84
-0.56 (-0.96%) ] and Merck [ MRK 36.57
-0.16 (-0.44%) ] from pushing higher. That’s often the case when new money from retail investors floods the market, usually the S&P 500. Cramer also noted that the run since last spring happened largely without this influx of cash.
“The retail investor hasn’t touched this market at all,” the Mad Money host said.
Intel’s [ INTC 19.35
-0.12 (-0.62%) ] dividend boost was a message to Wall Street, Cramer said. It read, “You don’t understand how good things are.” The stock declined after the company’s most recent earnings report, and he thinks unnecessarily so. Intel responded so investors would know it had plenty of cash on hand in anticipation of the AMD [ AMD 7.42
+0.07 (+0.95%) ] settlement, and that margins and earnings were on the rise.
“I really like Intel here,” Cramer said.
Page 1 of 2 | Next Page