Stocks rose Thursday as good domestic news outweighed more warnings about the EU. The major averages finished the day modestly positive after surging as much as 1 percent earlier. Those gains were given back after “hitting the wall that is Europe,” “Mad Money” host Jim Cramer said Thursday.
“This market is a tug of war between good news from the U.S., and horrific developments in Europe,” he said.
The day started upbeat, Cramer said, thanks to good news from a number of domestic names.
Novellus shares jumpeda day after Lam Research announced it would buy the chip maker. And Michael Kors shot up in its market debut, after management priced it to “reward” those who bought who paid for shares on the very morning they bought them, Cramer said.
Honeywell issued in-line sales and earnings guidance for 2012 despite predicting a more challenging macroeconomic backdrop. And FedEx said its earnings topped estimates due to strong growth in online shopping.
There was also good economic data—weekly initial jobless claims hit a three and a half year low and the Empire State and Philly Fed manufacturing reports showed the best growth in seven and eight months, respectively.
But then the market in its tracks when the head of the International Monetary Fundsaid that no country was immune from the escalating euro zone crisis. IMF Managing Director Christine Lagarde called the outlook for the world economy “quite gloomy” and made a comparison to the 1930s.
We still “won” Thursday despite the IMF’s warning, Cramer said. “But tomorrow? Who knows"
-Reuters contributed to this report
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