Cramer noticed a glaring inconsistency in the markets on Thursday: While Wall Street focuses on Greece’s debt problems, the latest jobless-claims report, the strong dollar and a weakened consumer, the Mad Money host can’t help but notice a rash of positive earnings reports. These quarters, he said during “High Noon,” seem to tell a much different story.
Kohl’s announced an “amazing” quarter, Cramer said, calling it as good as those from Saks and Macy’s . Then in the autos sector both Magna International and TRW Automotive Holdings claimed that autos sales are rebounding. And given the backlash against Toyota and its recalls, Cramer guessed that Ford Motor must be picking up a sizable share of the domestic market. He recommended Ford’s preferred shares .
More than these reports that business is good, especially when it comes to consumer-focused products, there’s also the more than $2 drop in oil. Futures traders may sell stock futures when crude prices fall, but Cramer was adamant that a cheaper cost per barrel translates into better prices at the pump. And again, that’s good for the consumers.
Sure, it’s true that today’s higher jobless claims could be directly related to President Obama’s continued push for health-care reform, regardless of how it may affect the nation’s top employers: small businesses. They are carefully watching Washington because the passing of new legislation would have a direct effect on how much a new employee would cost.
Factoring all of this in, Cramer offered the following conclusions: 1. This could be “a profit-taking moment,” thanks to a Washington struck with tunnel visions; and 2. In terms of gauging the market’s health, Kohl’s may be more important than Greece right now.
His message for the day?
“I refuse to panic,” Cramer said.
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