Cost containment is surprising Wall Street, Cramer said Monday, as company after company beats earnings estimates. The rails, oil services and industrials are finding “huge” savings in ways they virtually never had.
Cramer pointed to Halliburton and Eaton as just two examples of the trend. Orders are down and business is bad, but still these companies are making money. The positive action is making it hard for bears to bet against the market.
“The shorts have no place to go,” Cramer said, adding that the short covering is helping to push share prices higher.
Another trend that’s playing out is the buying of stocks that have been beaten down by heavy selling. No one would say that Caterpillar is doing well, the Mad Money host said, but investors are building positions in CAT because of its huge decline in value.
“Nobody really cares right now whether business is strong or not,” Cramer said. “They just feel these stocks got too hammered.”
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