During Wednesday’s Stop Trading!, Cramer agreed wholeheartedly with the Federal Reserve’s decision to keep interest rates at their current low levels. At least until the US sees some job growth.
“Unemployment is still weak in this country,” Cramer said, “so there’s no reason to raise rates.”
The central bank today left rates near zero percent, Reuters reported, and again committed to doing so for an “extended period.” Cramer has credited this low-rate environment for the stock market’s recovery, and he called it “a mistake” to change that policy until Americans are working again.
In other news, Ford Motor was downgraded today despite reporting a strong quarter on Tuesday. The reason? The analyst in question doubted Ford could repeat the performance, The Associated Press said.
Cramer called the downgrade a “short-term situation,” saying Ford’s profits will go toward rebuilding its balance sheet. As the company’s fiscal situation improves, ratings agencies like Moody’s and Standard & Poor’s upgrade Ford’s credit standing. If that happens, Cramer said, “This company is going to be able to finance its way to market share against” the competition.
“I bet you one day we will return to the days when Ford has a bountiful dividend,” Cramer said, “and the balance sheet is beautiful.”
Cramer also called Ford a “multiyear name,” brushing off suggestions that this was a momentum stock.
Sprint Nextel is showing signs of a turn. While the company at one point was losing subscribers in droves, Cramer said, now “they’re losing less.” And that’s a step in the right direction. A company like Sprint can’t rebound is just one quick quarter, so this slight improvement is noteworthy.