Europe vs. Earnings
The only thing that determines why a stock goes up on any given day is what’s going on in Europe, Cramer said Thursday.
“When we have good European news, and no recycled euro-trash, then we like what we hear from American companies,” he said. “When we have bad European news, then we don't care for the exact same earnings reports.”
IBM , Cummins and PPG Industries all had the misfortune of reporting when Europe was in turmoil. In each case, Cramer said, something was pulled from the conference call to be used as ammunition when the stocks went down. And almost every analyst pointed to Europe to explain why they had problems with each company.
Now that there has been a surprise rate cutfrom the European Central Bank and the Greek Prime Minister has backed down from the bailout referendum, all three names came roaring back.
That doesn’t mean the problems in Europe are over, but for now Cramer is thanking “the most important central banker in the world, [the ECB’s] Mario Draghi … for giving us a chance to make money in our stocks.”
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When this story was published, Cramer's charitable trust owned Cummins and IBM.
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