Things are looking up on Wall Street as stocks rallied for a second session Thursday.
The Dow Jones industrial average surged 181.19 points, or 1.41 percent, to close at 12,986.58, just shy of the psychologically-significant 13,000 level. The S&P 500 index jumped 18.86 points, or 1.38 percent, to finish at 1,387.57. The Nasdaq rallied 39.09 points, or 1.30 percent, to end at 3,055.55.
As the market recoups from the recent selloff, stocks were boosted by stronger prospects for GDP growth in China and amid hopes for further monetary easing. It’s a world of difference from last year, “Mad Money” host Jim Cramer said, when the stock market was never dealt more than one piece of positive economic news at a time. Europe’s sovereign debt crisis always seemed to plague the markets while China or the United States would occasionally announce good news, but never at the same time.
Cramer noted that today, however, the stock market is regularly getting good news from multiple markets. In turn, investors are able to focus on individual stocks.
“We can invest in great companies without having to worry about the macro situation crushing their stocks for no good reason,” Cramer said. “In other words, I am not by any means dismissing the possibility that things could get rough again in Europe. “
Today’s market doesn’t need positive news out of Europe to allow investors to profitably invest in stocks, so long as things are looking up in China and the United States, he continued. If things were to improve in all three markets, Cramer thinks stocks would propel much higher and if the rest of the world got going, he thinks the averages would rocket to all-time highs.
“I’m not ignoring the big macro numbers or the woes of important countries besides ours,” Cramer said. “I’m just saying that if you have a pair of [positive economic data], like we have right now with American companies doing well and China giving you some comfort that a hard landing is off the table and it can grow again, you can then focus on simply buying winning stocks the old fashioned way.”
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