What Is Driving This Week's Earnings?
The consumer is spending, Cramer said during Wednesday’s Stop Trading!, and a number of earnings reports this week prove it.
Williams-Sonoma, Phillips-Van Heusen and Darden Restaurants all pre-announced better-than-expected quarterly numbers and then announced results that were even better than that.
“That’s all consumer,” Cramer said. “A lot of it is a telegraph that March is going to be quite good.”
The Mad Money host also revisited two IPOs that hit the market today, MaxLinear and Calix . The first, MXL, has already passed his $18.55 target price, so he recommended taking profits if you own the stock. But Calix “still has room to run,” Cramer said, because it hasn’t yet reached his target price of $18.50.
Lastly, Cramer said he was “very impressed” with Lennar ’s earnings report, and specifically mentioned how the company pushed through price increases in hard-hit California. He saw at least some linkage with Bank of America’s new loan-modification plan, which was designed to help reduce the principle on troubled mortgages. While some have called BAC’s announcement a publicity stunt, Cramer said, he disagreed.
“I think that anything that lowers principle is of real value,” he said.
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