Stop Trading!: Watching Wells Fargo
Cramer will be watching Wells Fargo’s stock price for a tell on this market, he said during Wednesday’s Stop Trading!.
The bank's most recent offering sold at $27 a share. If WFC sinks below that, Cramer’s expecting “more punishment” in the markets. But if the price holds, then that bodes well for other companies that need to raise cash. With less than an hour to go in Wednesday trading, WFC was selling at $27.73.
Remember that both Las Vegas Sands and Bank of America watched their stocks dip below the offering price after their secondaries. Cramer thinks it's imperative that WFC breaks that trend.
Cramer also reiterated his statement on the insurance sector, citing a Goldman Sachs report he called “a frightening piece.” Most companies in this group, Principal Financial , MetLife , Prudential and others, will need to raise money in order to keep their respective doors open.
Pfizer , though, with its 8% yield, is a buy, Cramer said. He thinks the company has enough invested in research and development to possibly come up with new treatments that would offset losses from propriety drugs whose patents are about to expire.
Don’t miss Mad Money Wednesday night at 6 PM ET, as the show in on location at the University of Iowa for its latest Back to School Tour stop.
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