Web Editor, "Mad Money"
The Dow is down over 120 points today, with the S&P down almost 17. Speaking to Erin Burnett during today’s Stop Trading! segment, Cramer called the sell-off “interestingly correct,” saying yesterday’s Fed decision to keep short-term interest rates unchanged led some investors to think a recession might be coming.
Retail numbers didn’t help the situation either. But no one should have been surprised, Cramer said. The numbers weren’t worse than expected, they were expected to be bad – and that’s why the sector isn’t taking too hard a hit. He recommended using the pullback is a chance to buy in.
Cramer also changed his stance on Wal-Mart. He said the stock’s resilience after such a big dip in the market is a sign it’s ready to move. “It’s very rare that you find a relative-strength big-cap stock like Wall-Mart just hanging in there even though the futures are pulling everything down,” Cramer said. “That stock wants to go to $50.”
The rails have enjoyed an “amazing run-up” since Warren Buffett endorsed the sector, Cramer said, and he’s just as bullish. In fact, given its strength, he can’t understand why an activist hedge fund like TCI would pick on companies that seem to be executing well.
Chemical shipments are up on the rails, and as a result, Citigroup upgraded Georgia Gulf from a “sell” to a “buy.” “I like that call,” Cramer said. “Look at PPG up to $75. Georgia Gulf should be keeping pace - and don’t forget Olin.”
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