Dow Arrows Toward Cramer’s Target
Cramer started Mad Money on Wednesday by pointing out two pieces of news that should propel the Dow Jones Industrial Average toward his end-of-year prediction of 14,548.
First, General Motors’ settlement with the United Auto Workers could push that stock to $45. The union “bowed out,” Cramer said, and the enormous cost disadvantage that came from retirement healthcare plans has been eliminated.
Second, if Warren Buffett ends up buying a small piece of Bear Stearns , then Citigroup , American International Group , JPMorgan Chase and American Express should rebound “almost overnight,” Cramer said. These are the depressed financials that have been keeping the Dow back, and a move in the group should spur the index upward.
“I’m urging you not to worry as we take out 14,000,” Cramer said.
Jim’s charitable trust owns Citigroup and American International Group.
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the Mad Money website? email@example.com