The Wall Street Whisperers
Wall Street’s bearish whispers drove the market’s bullish action on Thursday, Cramer told viewers. So many traders had their stories wrong that the slightest bit of good news sent stocks soaring.
Cramer compared this whispering to a game he played with his daughters when they were still young. Much like “telephone,” each person whispered the story they heard from player before him or her into the next person’s ear. By the time the story came full circle, it had completely changed and, more importantly, was dead wrong. That’s exactly what happened on Wall Street.
ConocoPhillips wasn’t supposed to report earnings that were double what analysts expected, not according to these whisperers. COP closed the day up almost 5%. Black & Decker’s quarter wasn’t nearly as good, but the company climbed almost 8% because the slashed earnings and dividend Wall Street expected never happened. This same trend played out with Yum! Brands and Caterpillar as well, with both companies surprising market naysayers.
The lesson here? Do your homework so you’re not hoodwinked by these ill-informed “tips.” The people who did the research and trusted their thesis made money today. The whisperers and their followers did not.
Cramer's charitable trust owns Caterpillar, ConocoPhillips and Yum! Brands.
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