“The honeymoon continues for Obama,” Cramer said during Friday’s Stop Trading!.
What looked like a decline in stocks came to a halt at the start of President-Elect Barack Obama’s press conference to announce his picks for Labor, Transportation, the Small Business Administration and U.S. trade representative.
“This is the guy, literally, we want on at all times because every time he speaks the market reverses,” Cramer said.
(The market did seems to buckle a bit not long after. With a half hour left in trading, the Dow was down about 22 points.)
The theme throughout all Obama’s cabinet-announcement pressers has been his infrastructure-focused stimulus plan and the spending needed to get the U.S. economy back on track. Wall Street, so far, has responded positively to the president-elect’s statements.
Cramer said that Caterpillar is his top Obama stock. Companies like CAT that make the machinery required for an infrastructure build-out should be the top beneficiaries of that stimulus plan. So investors who believe the second half of 2009 will be strong should buy Caterpillar.
And potential buyers might have the perfect opportunity to do so right now. Even pre-announcing worse-than-expected earnings doesn’t seem to be hurting CAT or its peers, Cramer said, which “tells you that the bottom is in for these stocks.”
Steel stocks, however, should not be owned, Cramer said, because they’ve already jumped too much on Obama’s infrastructure plans.
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