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Cramer: Retail Investors Returning to Market?

Monday, 16 Nov 2009 | 3:34 PM ET

The general public has started trading fixed-income securities for stocks, Cramer said during Monday’s Stop Trading!. He pointed to Boeing and Merck, whose share prices “are flying,” as proof.

There’s been little good news from either company, Cramer said, but that hasn’t stopped Boeing and Merck from pushing higher. That’s often the case when new money from retail investors floods the market, usually the S&P 500. Cramer also noted that the run since last spring happened largely without this influx of cash.

  • Cramer's 8 Stocks for Cancer's Cure

“The retail investor hasn’t touched this market at all,” the Mad Money host said.

Stop Trading, Listen to Cramer!
Mad Money host Jim Cramer gives his take on the market.

Intel’s dividend boost was a message to Wall Street, Cramer said. It read, “You don’t understand how good things are.” The stock declined after the company’s most recent earnings report, and he thinks unnecessarily so. Intel responded so investors would know it had plenty of cash on hand in anticipation of the AMD settlement, and that margins and earnings were on the rise.

“I really like Intel here,” Cramer said.

He added that Dell’s upgrade was good for Intel, too, and Microsoft can’t be up without taking Intel with it.

Lastly, Cramer endorsed Bristol-Myers Squibb , saying that Immunogen , Exelixis and Allos Therapeutics make natural acquisition targets to extend the company’s cancer franchise. He called CEO James Cornelius “money in the bank.”

Cramer’s charitable trust owns Bristol-Myers Squibb.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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